British recycling company Impact Recycling raises €3.8 million for its water-based density separation tech

Grangemouth-based Impact Recycling, a plastic recycling company that recovers high-purity recycled polymers from post-consumer waste, has received a €3.8 million follow-on investment from VC firm IW Capital.

David Walsh, CEO of Impact Recycling, said: “This investment marks a significant milestone in our journey. With strong demand from global partners and our licensing model gaining traction, we’re well-positioned to scale our operations. We are thrilled to have IW Capital’s support as a partner as we develop the business and our market presence.”

Founded in 2014, Impact Recycling has developed and commercialised a patented water-based density separation technology known as BOSS (Baffled Oscillation Separation System). This process separates mixed plastic waste into two high-purity output streams: polyethylene (PE) and polypropylene (PP) – each reprotedly exceeding 95% purity.

The company says it is their ability to recycle both rigid and flexible plastics that positions it as a unique company in the mechanical recycling space.

With operational plants in Glasgow and Peterlee, Impact Recycling serves a growing base of UK and European clients across the healthcare, packaging, and waste management sectors.

Its Glasgow site specialises in recycling medical plastic waste from the NHS, while its Peterlee site was recently expanded to include a state-of-the-art facility capable of recycling flexible film packaging – a challenge that has eluded many traditional recyclers, according to Impact Recycling.

In November 2023, Impact Recycling received a grant from Innovate UK and a €8.2 million loan from Nestlé, which supported the development of its recycling facility.

The following year, in January 2024, Impact Recycling signed a licence agreement with Syklo, a Finnish circular economy business, for Syklo to build and operate two 25,000-ton BOSS plants in Finland. Once operational, the plant will reprotedly increase the country’s plastic recycling capacity by up to 50%.

LG Chem, a Korean chemical company, are also a shareholder with whom Impact Recycling have signed a licence agreement.

IW Capital’s further investment in Impact Recycling takes place amongst a backdrop of regulatory tailwinds, such as the EU’s Plastic Packaging and Plastic Packaging Waste Directive which is aimed at reducing the environmental impact of plastic packaging and requires 35% recycled content to be used in any plastic packaging by 2030, rising to 60% by 2040.

The company will use the new investment for business development and to continue scaling its business in current and new markets.

Commenting on the investment, Alan Armstrong, Chairman of IW Capital and Head of Investment, said: “Impact Recycling exemplifies the kind of business we’re proud to support – deeply innovative, commercially proven, and playing a critical role in the future of sustainable materials. Their proprietary BOSS technology and strong customer traction make them a standout opportunity in a market undergoing rapid regulatory and consumer-driven change.”