INTERVIEW: PPWR sets stage for chemical recycling scale-up, says BlueAlp CEO

The EU's newly implemented Packaging and Packaging Waste Regulation has now created the conditions for chemical recycling capacity to scale up, Valentijn de Neve, CEO of chemical recycler BlueAlp, said in an Aug. 14 interview with Platts, part of S&P Global Energy.

De Neve also highlighted February 2027 as the deadline for EU member states to outline their penalty regimes, giving the market greater visibility on enforcement and potential non-compliance penalties ahead of the 2030 mandatory recycled-content targets.

PPWR provides investment certainty

The PPWR came into effect Aug. 12.

De Neve said a corrective approach to enforcement made sense in its initial phase because the latest guidance was published only days before implementation.

"If companies receive clarity just days before implementation, it is not fair for them to face penalties immediately afterward," de Neve said. "In this phase of the PPWR, a corrective approach makes complete sense."

However, this should not set a precedent for how the wider implementation of the regulation will occur, particularly the mandatory recycled-content requirements due in 2030, de Neve added.

"Knowing in February what penalties will apply from Jan. 1, 2030, gives companies enough time to prepare."

Further clarity around mass balance and sustainability criteria will be important for investment and contracting decisions across the plastics value chain, he said.

"The direction of travel is extremely clear for recycled content and stricter enforcement," de Neve said. "Recycled content is becoming a market-access requirement, which is why we are following closely the secondary legislation around mass balance, sustainability criteria and the broader framework that will allow the value chain to invest and contract with greater certainty."

Chemical recycling capacity

Although current capacity remains insufficient, de Neve said enough chemical recycling projects and final investment decisions could still come through before the PPWR's 2030 targets take effect.

"The JRC report independently says capacity can be built. At BlueAlp, we are preparing multiple projects that will be operational ahead of 2030, both through sites we own and operate and through licensing our technology," de Neve said.

BlueAlp is working with partners seeking to take FIDs in time to be operational ahead of 2030, while other chemical recyclers are also preparing capacity, he said.

As the industry moves toward 2030, de Neve expects the focus of downstream customers to shift increasingly from capacity availability to reliability and security of supply.

"Having capacity is one thing. Having reliable, high-quality production is the next. Over the next 12 to 18 months, I expect downstream customers to focus more on security of supply, because if companies need to comply, they need to be sure they can access circular materials."

Updates on projects

BlueAlp is progressing several chemical recycling projects across Europe, including a project with RES in Italy, a collaborative project with BioBTX in the Netherlands, and a planned scale-up with LBC in Rotterdam, also in the Netherlands.

BlueAlp's 20,000 metric tons/year project with Italian waste manager RES is at the process insulation stage, which is close to mechanical completion and is expected to start up by the end of 2026, a slight delay from the mid-2026 operational start indicated in its November 2025 announcement.

BioBTX, with its facility in Delfzijl, the Netherlands, has also recently made a final investment decision, with BlueAlp chosen as the pyrolysis technology partner in April. De Neve expected complete process insulation for BioBTX to leave BlueAlp's Eindhoven workshop by the end of December 2026, for the future construction at BioBTX's project site.

Rotterdam targets 40,000 mt/y scale-up

BlueAlp is also entering the FEED phase for a chemical recycling project in Rotterdam harbor with tank storage provider LBC, targeting a further scale-up of its technology ahead of 2030.

"The next step is scaling up, and we are entering the FEED phase for a project in Rotterdam harbor together with LBC. LBC is a tank storage provider with a leading position in storing pyrolysis oil," De Neve said.

"At their site, where they are also a co-investor, we plan to develop a scale-up of at least 40,000 mt/y from a single train."

The project has received government grants for the front-end engineering design phase, de Neve said.

The Rotterdam location also provides access to potential pyrolysis oil customers, with de Neve expecting demand for externally sourced material even among petrochemical companies developing their own chemical recycling capacity.