Freepoint Eco-Systems has successfully secured a $50 million non-recourse loan to support its chemical recycling facility in Hebron, Ohio, USA. Non-recourse financing is a type of commercial lending where repayment is strictly tied to the project's profits rather than the borrower's other assets. These loans are typically backed solely by collateral.

The loan was underwritten by ING Capital, a US-based capital markets firm and a subsidiary of Dutch bank ING Group NV. According to Freepoint, this marks the first instance of such financing in the chemical recycling sector.

Jeff McMahon, Managing Director at Freepoint Eco-Systems, expressed enthusiasm about the partnership with ING. "We are thrilled to collaborate with ING in showcasing that plastic upcycling facilities using advanced technology can successfully access project finance loan markets," McMahon stated. He emphasized the scale of the Hebron facility, which boasts the capacity to process 180 million pounds of plastic waste annually. This commercial-scale plant will transform landfill-bound or incineration-destined plastic waste into a hydrocarbon-rich liquid, enabling Freepoint's clients to create new products.

McMahon believes this financial milestone is pivotal for advancing their broader strategy to establish multiple waste plastic upcycling facilities worldwide. The Hebron plant is considered Freepoint's flagship recycling facility and will utilize pyrolysis technology to convert plastic waste into oil. The resulting oil will be transported to Louisiana, where Shell Chemicals will use it to manufacture new plastics.

Situated on a 25-acre site, the Hebron facility will repurpose an existing 260,000-square-foot building. Freepoint expects the plant to recycle approximately 90,000 tons of plastic waste annually. Construction on the project began in December 2022, with initial projections targeting a mid-2024 operational start. In March 2023, Freepoint confirmed that the project was progressing on schedule, with completion expected by the end of 2024. By September 2023, Freepoint awarded engineering consultancy Wood a three-year contract to oversee the plant's operations and maintenance, noting that the project was nearing completion. There have been no further updates regarding the official start date.

ING Capital Managing Director Subha Pasumarti praised the achievement. "We are excited to finalize this groundbreaking loan facility for Freepoint Eco-Systems' first commercial-scale upcycling plant," Pasumarti stated. "This deal reinforces ING's dedication to supporting clients engaged in the circular economy and sustainability sectors. We foresee rising demand for debt capital in the plastics recycling market as global efforts to recover and repurpose waste plastic continue to expand."

In May 2023, Freepoint announced plans to establish its first pyrolysis plant outside the United States. The new plant will be located at the Kluizendok site along Belgium's Ghent-Terneuzen Canal. Spanning 10 hectares, the Belgian facility is expected to recycle approximately 80,000 tonnes of plastic waste annually.

To support its European expansion, Freepoint opened a new office in Düsseldorf, Germany, in September 2023, furthering its commitment to advancing chemical recycling operations in Northwestern Europe.