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Plastics chemical recycling plant – Pacific Region

The project aims to develop, build and operate a chemical recycling plant for hard-to-recover plastics, offering a sustainable and economically viable solution that reduces plastic waste and contributes to Colombia's decarbonisation and circular economy goals.

Summary


Total Investment: To be defined after prefeasibility studies

This project aims to develop, build, and operate a chemical recycling plant for hard-to-recover plastics, offering a sustainable and economically viable solution to reduce plastic waste and contribute to Colombia’s decarbonization and circular economy goals.
 

Objective

To develop and operate a chemical recycling plant capable of transforming non-mechanically recyclable plastics into high-value organic derivatives (such as oils and fuels), promoting the circular economy and reducing environmental pollution.
 

Key Goals

  • Complete the prefeasibility study within the established deadlines.
  • Secure investment to advance to the feasibility and construction phases.
  • Sign supply agreements for raw materials (plastic waste).
  • Obtain environmental licenses and permits prior to the start of construction.
 

Market Opportunity

Colombia faces a structural deficit in plastic waste management: nearly 70% of plastics are not recycled through mechanical methods. Pyrolysis provides an advanced technology capable of processing this waste and generating marketable products. The increasing regulatory pressure, corporate sustainability goals, and support from Cali City Hall and BID Invest make this project a strategic, low-risk opportunity positioned within the global rise of ESG investments.
 

ESG Considerations

Environmental: Reduction of plastic waste, resource recovery, and decreased landfill dependency and emissions.
Social: Promotion of green employment, community participation, and public health improvement.
Governance: Alignment with public policies (PGIRS, POT) and environmental regulatory compliance, with support from entities such as BID Invest, Cali City Hall, and the Ministry of Environment.

Financial Indicators


Total Investment

To be defined after prefeasibility studies

VPN

N/A (los valores de proyección aún no se encuentran disponibles, pendientes de estudios de factibilidad)

Structure

Private capital with potential multilateral co-financing

Revenue Model

Sale of products derived from pyrolysis and waste disposal fees

Key Partners

BID Invest, Cali City Hall, and Invest Pacific

OPEX

Transportation, maintenance, operation, and energy costs

Project Schedule


Prefeasibility studies

Predecessor: Letter of intent

Milestone: Prefeasibility study

Feasibility studies

Predecessor: Prefeasibility

Milestone: Feasibility studies

Plant construction

Predecessor: Feasibility

Milestone: Commissioning

Start-up and continuous operation

Predecessor: Commissioning

Milestone: Beginning of operations

Business Model


Key Partners

  • Invest Pacific
  • BID Invest
  • Santiago de Cali City Hall
  • Ministry of Environment and Sustainable Development

Key Activities

  • Prefeasibility and feasibility studies.
  • Logistics for plastic collection.
  • Construction, commissioning, and operation of the plant.

Value Proposition

  • For waste generators, it offers a sustainable solution for non-recyclable plastics.
  • For industrial clients, it provides high-quality organic derivatives (oils and by-products) as alternatives to virgin raw materials.

Customer Segments

  • Companies and municipalities that generate hard-to-recycle plastic waste.
  • Industries that use organic derivatives and alternative fuels.

Revenue Streams

  • Sale of products resulting from pyrolysis (pyrolysis oil and by-products).
  • Fees for plastic waste collection and disposal.

Cost Structure

  • Waste collection and transportation.
  • Plant maintenance.
  • Operation and energy costs.

Risk Plan


Event Probability Impact Rating Mitigation Contingency
Lack of coordination among public entities High High High Inter-institutional team and continuous communication Mediation with higher authorities
Insufficient regulatory frameworks Medium High High Collaboration with public entities and BID Invest Support from the National Government
Business stability and viability Medium High High Collaboration with public entities and BID Invest Financial contingency mechanisms
Amount to be determined following pre-feasibility studies

STATE: In progress
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In progress Amount to be determined following pre-feasibility studies