ECO2 Plastics raises $6.5 million to recycle plastic
ECO2 Plastics, a San Francisco-based recycling firm, has just raised $6.5 million in new funding from Trident Capital and a group of small investors led by Thompson Hutton. The company sells a product analogous to recycled plastic, which is used for a variety of industry applications, that it says is produced in a more efficient, environmentally-conscious way.
In addition to recycling conventional PET plastic, ECO2 is working on new processes that will allow it to also recycle polypropylene, HDPE and other types of plastics. Its process operates as a closed-loop system — re-using the same cleaning agents, a biodegradable solvent and liquid carbon dioxide, over and over. As a result, it doesn’t require water — a big advantage over rival technologies — and produces no waste.
Businesses’ growing awareness of their environmental profile over the last few years has opened the door for several recycling startups. We reported last year on Reklaim Technologies, a Bellevue, Wash.-based firm that recycles tires, computers and old car parts to recoup the materials and stored energy, and MBA Polymers, a Richmond, Calif.-based firm that claims to be able to recycle anything made out of plastic.
ECO2 reported record third quarter revenues last year and expects to generate $30 million in gross revenues during fiscal 2008. According to PEHub, the firm’s existing investors converted over $6 million in short term notes and accrued interest prior to the close of the financing.
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About the Author, Jeremy Jacquot
Jeremy Jacquot is a doctoral student at the University of Southern California who is studying watershed management and global biogeochemical cycling. He previously studied marine biology at UCLA where he earned his B.S. in 2005; he is the Los Angeles correspondent for TreeHugger, where he focuses on science/technology and business news.