Aloe Environment Fund II investment in Alpha PET
In December 2007, Aloe took a majority shareholding in a newly formed company AlphaPET Ltd. Alpha PET has been formed to commercialize the innovative ReNEW process.
This process is a chemical recycling technology which could potentially be seen as a disruptive technology given its ability to recycle both clear and colored bottles back into bottles in a very cost effective manner. To date, no single chemical recycling technology has been able to be economically implemented.
Soft drink manufactures as well as other consumers of polyester (PET) for food contact are being increasingly pressurized to recycle waste bottles and incorporate increasing levels of recycled bottle contents in PET food contact applications, including bottles. However, with the increased complexity of the formulation of bottles manufactured from virgin inputs, such recycling is becoming more difficult and thus conventional mechanical recycling technologies, which can recycle only clear bottles contaminated at relatively low levels, are proving economically inefficient. At the same time, virgin prices are likely to increase over time, given their direct relationship with the price of oil. Hence virgin inputs for PET may need an alternative. It is clear that this is an opportunity market which is waiting for a major breakthrough technology.
With a view to prove the ReNEW process on a commercial scale, an existing virgin PET plant will be acquired in India and a stand-alone ReWEN process plant will be built adjacent to the virgin plant to furnish it with recycled feedstock. Once proven, the ReNEW process will be expanded worldwide.
The company is led by an strong and experienced Management Team, with an extremely deep knowledge of the PET industry and market.