CTC #90 - Giving plastic a new life

TECH

Polystyvert raises $16M for circular plastics

Polystyvert raised $16M in an initial close of its Series B round led by Netherlands-based Infinity Recycling for their polystyrene recycling technology.

The tech: Polystyvert develops technology to recycle polystyrene, a common type of plastic used in things like cushioning for electronics packaging, disposable food containers, and insulation. They dissolve the plastic in an essential oil while any contaminants (like food waste) float away. Polystyvert then recaptures and purifies the material, recycling it into pellets that can be used to replace virgin polystyrene. The result: new final products made entirely from recycled polystyrene. 

Why it matters: Polystyrene is a poster child for the problems with single-use plastics. It doesn’t biodegrade and is hard to recycle because it has a low density and is often contaminated with food waste. It often ends up in landfills, where it makes up a large amount of the volume. It also tends to end up in the environment as the wind easily blows it away. 

Like other plastics, it’s made from fossil fuels and helps perpetuate the industry. 

Polystyvert technology means more plastics can be recycled, diverting them from landfill and limiting the market for new plastic production. They say their technology is not only economically viable, but is the shortest recycling loop for this type of waste. 

What’s next: The company is getting ready to build out its first commercial plant, having successfully proven its technology at pilot and demonstration scales. The funding will be used to support the commercial build and expand the company’s portfolio of intellectual property.

CLIMATE CAPITAL

⛽️ The feds backed a handful of hydrogen projects through NRCan’s ​​Clean Fuels and Industrial Fuel Switching program. Recipients include:

• Aurora Hydrogen received $3M to advance microwave pyrolysis technology for low-carbon hydrogen production

• Quantiam Technologies got $1M to produce low-carbon e-fuels

• Innova Hydrogen also received $1M for low-carbon hydrogen

• Innovative Fuel Systems secured $1.2M to develop a hydrogen-diesel retrofit system for heavy duty vehicles

• New Wave Hydrogen received $400K to develop shockwave-based, low-carbon hydrogen production

Canada’s economic development agencies also announced funding for a number of projects:

• 🧪 n!Biomachines received a $1.25M repayable investment from the federal government to scale up manufacturing of its bioreactors for the cellular agriculture industry. 

• 🛰️ Wyvern received over $450K to launch a new network of satellites aimed at improving adoption of farming solutions that help preserve ecological zones.

• 🌱 Pure Life Carbon received over $2M to expand production of its sustainable and carbon-negative growing substrate.

🌱 Above Foods went public on the Nasdaq via SPAC merger with Bite Acquisition. Above Foods is a vertically integrated plant-based food company working across regenerative agriculture, speciality ingredients and consumer packaged goods. The listing valued Above at $435M.

💸 Cycle Capital announced the initial close of its Cycle H2O fund, with a final target of $30M. The fund is focused on seed and early stage watertech companies in Quebec and Eastern Canada across a number of industries.

MILESTONES & PRODUCT

🏗️ Nexii Building Solutions sold for $500,000 in a bankruptcy sale after running into legal and financial issues. The low-carbon building materials company was last valued at over $2B in 2022. The company was bought by Nexiican Holdings and Nexii Inc. which will assume more than $20M in debt.

⛏️ Summit Nanotech entered a joint venture with a Chilean miner to develop lithium resources using Summit’s direct lithium extraction technology. 

🦾 Relocalize was named “Food Solutions company of the year” by SupplyTech Breakthrough Awards. Relocalize is developing autonomous food & beverage micro-factories to eliminate emissions from middle-mile logistics.

NEWS

Full steam ahead - for now

What happened: After announcing a strategic review of it’s business, Swedish battery maker Northvolt confirmed that its $7B battery plant in Quebec will continue “as planned”. 

The company is reviewing capital allocation with four new plants in progress and complaints from customers about delayed orders. The review will re-evaluate timelines for these plants.

In context:  The readjustment is the result of an EV boom that hasn’t materialized yet. Battery makers grew quickly to meet the projected demand and are now course correcting. 

Slower-than-expected growth in EV adoption has led EV makers to lower their delivery forecasts which then impacts the rest of the value change. France and Germany reduced or ended EV incentives this year and consumer adoption is slower than expected in North America. Battery makers are also facing stiff competition from Asian battery makers like BYD and CATL.

But Northvolt has some unique challenges: environmentalist groups are pushing back against its Quebec plant, and it’s dealing with internal safety issues. 

What’s next: While Northvolt expects the Quebec plant to continue, the timeline to start production in 2026 could change as they re-evaluate their portfolio of projects. New tariffs from the US, EU and potentially soon Canada may help dial back the pressures from competition.

IN THE NEWS

💨 Mega wind: Hydro-Québec will build its first mega wind farm, part of a new clean-energy strategy. The project will partner with two Indigenous communities and local government to build out 3,000 MW of wind power across several farms over 5,000 square kilometres west of Saguenay-Lac-Saint-Jean. In Saskatchewan, Enbridge and Six Nations Energy Development also announced a 200 MW wind farm, enough to power 100,000 homes for a year. 

⛏️ High bar for critical minerals: Innovation Minister Champagne shared stricter guidance for foreign investment deals in critical minerals. Deals will only be deemed a net benefit in “the most exceptional of circumstances”. The statement followed approval of mining giant Glencore buying Teck Resources’ coal business. The federal government wants to limit foreign influence and ownership of critical minerals.

⚡️ Ageing utilities: Across the country, utilities are challenged with ageing infrastructure and growing demand. Manitoba Hydro and Hydro Ottawa both recently highlighted the need for massive infrastructure upgrades in their rate applications, while BC Hydro announced a $3.2B investment on Vancouver Island to upgrade old infrastructure and meet demand. Ratepayers may see higher energy bills for these investments and utilities are looking to all levels of government for financial support.

🏢 Building tension: A new study from University of Toronto researchers finds that Canada can’t meet its emissions targets without drastic changes in construction practices. Canada needs to triple housing production AND reduce its emissions 40% below 2005 levels by 2030. If current construction practices continue, half of the country's emissions would be from construction alone. 

🚙 A Prairie first: Manitoba introduced a $4,000 purchase rebate for EVs, the first Prairie province to do so. Buyers can also get $2,500 for a used EV and under $70,000. The rebate was an election promise by Wab Kinew’s Manitoba NDP.

BIG PICTURE

A new Fusion Industry Supply Chain report just dropped

SBTi CEO steps down after carbon offset controversy

China asserts state ownership of rare earth metals

The US swears in 9,000 new Climate Corps workers

Hydrogen aviation startup Universal Hydrogen shuttered despite raising $100M

What’s the common factor among Europe’s fastest growing climate startups? They’re working on hardware and infrastructure

COMMUNITY

📅 PNW Climate Week - Vancouver: A community-powered event series in partnership with Bloomberg Green Festival that unites climate innovators, thought leaders, and enthusiasts across Portland, Seattle and Vancouver. July 8 - 19th.

💡 RBC Women in Cleantech Accelerator: Powered by MaRS, the accelerator supports 7-10 women entrepreneurs for a two-year program to advance breakthrough ideas. Apply by July 19th. 

💰 Zero Emission Vehicle Infrastructure Program: Natural Resources Canada is seeking proposals for public and private EV charging and hydrogen refuelling infrastructure. Apply by Sept 19th.

💻 Cycle Momentum is hiring an Analyst / Associate for their new Cycle H2O Fund. Help accelerate and scale up innovative companies with solutions to protect, conserve and better utilize water resources across industries. See more climate jobs here.

WORK WITH US

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