Plastic recycling in the Closed-Loop Factory: from waste acceptance to product manufacture

Recycling begins even before disposal. The entire life cycle of a product should be considered as early as the development stage. The start-up HolyPoly supports brand manufacturers throughout the entire recycling process. Their mission: to make plastics recycling a matter of course. To meet the growing demands, they recently opened the Closed-Loop Factory.

In an interview with K-Mag, Fridolin Pflüger talks about the opportunities offered by the new Closed-Loop Factory, why the recycling process starts before the waste and how HolyPoly is helping to raise awareness of plastic recycling.

You inaugurated your Closed-Loop Factory at the end of last year. How has its development affected HolyPoly's capacities and opportunities in plastics recycling?

Fridolin Pflüger: This step was the right decision at the perfect time. First and foremost, we wanted to use the new technical centre to concentrate our machinery in one place in order to implement the increasing number of projects as smoothly as possible. We have purchased new machines for sorting plastics and expanded the conveyor systems so that we can meet the growing requirements of our customers. Thanks to the modular structure of our factory, various test set-ups can be flexibly connected in series to test the optimum constellation of recycling steps for series processes. This simplifies the temporary use of rental machines in particular, allowing us to dynamically adapt our technical capacities to project requirements. As a final step, we are currently planning to set up our own laboratory in the Closed-Loop Factory in order to expand our analytical capabilities.

Can you describe the process that HolyPoly goes through from receiving the plastic waste to manufacturing new products?

Pflüger: Our work actually begins before the "waste", because the cycle can only be closed sustainably if recycling is considered for the entire life cycle of a product. That's why our projects often start with a discovery phase, an in-depth analysis to explore new recycling prospects in strategically important markets and regions.

It would be ideal if the return and recycling of products were already planned during the development phase. However, as this is generally not the case, we use modern UX design approaches to develop ways of returning the product to the market, for example through innovative take-back systems and recycling programmes. We always optimise these for specific product groups so that we can design a customised recycling process with particularly high-quality source material.

HolyPoly invests a great deal of energy and expertise in the development of these recycling processes – from dismantling and sorting to formulations and compounding, in order to adapt the recycling material for the desired application and compensate for possible fluctuations in quality. Our new Closed-Loop Factory has become a crucial piece of infrastructure: Here, we are able to map all processes in-house on a pilot plant scale. What is created here can then be quickly transferred to industrial production processes together with long-standing and experienced partners.

The final phase then begins with circular product development. The focus is now on the design, layout and manufacture of plastic products with the main objective of maximising the recyclability of the new product.

What challenges do you see in the scaling of recycling processes and how does HolyPoly meet them?

Pflüger: Scaling recycling processes is ultimately the key to success: the use of recycled plastics only makes economic sense once a "critical mass" has been reached. Our previous projects, for example for Bosch, have proven that with the right processes, recyclates are ultimately produced that are in no way inferior to virgin material. This applies to quality, appearance and all regulatory requirements such as pollutant guidelines and the applicable legal standards. Now we are faced with the challenge of bringing the price of the recyclate into an appropriate economic relationship with the virgin material and you guessed it: the solution is called scaling.

However, we see the biggest structural obstacle in the massive investment backlog in large parts of the German economy. The energy transition is not feasible without solar and wind power plants. The same applies to the Circular Economy: without investment in the necessary infrastructure, it will remain nothing more than a beautiful dream.

HolyPoly counters the low willingness to invest with facts: With the data from our feasibility studies and the test runs in the Closed-Loop Factory, we can generate very well-founded business models with a view to profitability and investment requirements. These business cases show that a competitive material price can be achieved with a high volume throughput using the latest technologies and that the investments will pay off. If one also assumes medium-term price increases for new materials – for example due to rising CO₂ taxes or crude oil prices – this will sooner or later even result in a competitive advantage.

How is HolyPoly helping to raise awareness and acceptance of plastics recycling in the industry and beyond?

Pflüger: The declared aim of HolyPoly is to make plastic recycling a matter of course. However, a conscious approach to plastics is only possible if there are suitable offers. For the industry, this means that preserving the value of plastics must become a key aspect of their economic considerations.

In short: recycling must pay off – at least in the long term. Only with this prospect will companies be prepared to incorporate recycling and technical cycles into their business models. After all, such a transformation process requires a great deal of commitment and high levels of investment because suitable processes and infrastructure often do not exist. The major brand manufacturers in particular have a special role to play on this path: they can provide effective impetus that can transform the entire system and make the plastics industry more sustainable. This is precisely why HolyPoly is focussing on these companies.