In a joint effort to bolster the circular economy for plastic packaging in Australia, global packaging leaders Mondelēz International, Inc. (Nasdaq: MDLZ) and Amcor have come together to invest in Licella Advanced Recycling, a pioneer in advanced recycling technology.
These investments will facilitate the construction of one of Australia’s initial advanced recycling facilities by Licella. Leveraging their innovative Catalytic Hydrothermal Reactor (Cat-HTR™) technology, Licella aims to transform end-of-life plastic into a crude oil substitute suitable for producing new food-grade plastic packaging.
Cat-HTR™, an advanced hydrothermal liquefaction (HTL) technology, utilizes hot, pressurized water to continuously recycle plastic that would otherwise end up in landfills. The newly established Australian facility, named Advanced Recycling Victoria (ARV), is expected to process approximately 20,000 tons of end-of-life plastic annually initially, with plans to scale up to 120,000 tons per year. Mondelēz International, through Amcor, anticipates gaining access to recycled content from this facility to fulfill a significant portion of its soft plastic packaging needs in Australia, thereby significantly reducing its reliance on virgin plastic.
With sustainability at the core of Mondelēz International’s long-term business strategy, the company is committed to driving growth and value for its stakeholders while addressing environmental concerns related to packaging waste. Recognizing the challenges posed by packaging waste, the company collaborates with partners across the value chain to promote a circular economy for packaging materials. Under its ‘Light and Right’ packaging strategy, Mondelēz International strives to reduce unnecessary packaging and streamline packaging materials across its operations.
Christine Montenegro McGrath, Senior Vice President and Chief Global Impact and Sustainability Officer at Mondelēz International, emphasized the importance of this initiative, stating, “While plastic plays an important part in the security, quality, protection, and preservation of food products, there is a gap in sustainable local recycling solutions. Our packaging strategy is focused on using better packaging and helping to build better systems. This investment brings together multiple stakeholders in the supply chain to scale the infrastructure and technology needed to help create a more sustainable future for plastics and is part of our longer-term focus on working toward our goal of net-zero packaging waste by supporting circular economies.”
Dr. Len Humphreys, CEO of Licella, highlighted the need for industry leadership in advancing sustainable plastic waste solutions in Australia. He noted, “This is the leading technology of its kind globally, and it was developed here in Australia. This investment will help advance our Australian facility at a time when demand for sustainable plastic solutions, that also help provide food-grade recycled content, is growing exponentially.”
Frank Lehmann, Vice President of Corporate Venturing and Open Innovation at Amcor, emphasized the company’s commitment to investing in technologies that benefit customers, consumers, and the environment. He stated, “Amcor is continually seeking opportunities to invest in new technologies that will bring long-term benefits to our customers, consumers, and the planet. We recognize our products can play a vital role in the circular economy, and partnerships like this enhance our ability to deliver innovative solutions for our customers, like Mondelēz International.”
Mike Cash, President of Amcor Flexibles Asia Pacific, added, “Amcor will be able to meet increasing customer demand for recycled content in the region with this investment, as well as take another step closer to achieving our target of 30% recycled content across Amcor’s portfolio by 2030.”
This collaborative effort signifies a significant stride in addressing plastic waste while advancing sustainable practices within the packaging industry.