Content Provider for Newsweek
Frederic Schmuck

Frederic Schmuck

CEO
Alterra Energy
22 May 2024

What is the origin story behind Alterra and what makes your Infinitely Renewed Plastics™ technology and its IP so unique? 

Our journey with this technology began in a small garage in Akron, Ohio in 2009, where we initially scaled a one-pound-batch tabletop system to something much larger. By 2011, we had increased our capacity to process 50 pounds of material per hour continuously. This capacity expansion allowed us to secure venture capital and establish a commercial system in Ohio that processes 5,000 pounds per hour. A key innovation in our technology is the self-cleaning reactor which operates continuously, eliminating the need for shutdowns and significantly enhancing our operational efficiency. Our facility not only operates on an industrial scale but is also designed to be modular, scalable and decentralized. This means plants can be sited anywhere and that increasing our capacity, say to 80 kTa, would simply require us to install additional lines alongside the existing ones. The scalability of our technology is a standout feature, differentiating us from many peers who might use smaller batch processes or semi-continuous systems.We also utilize a proprietary process that uniquely does not employ a catalyst but effectively sequesters chloride, a crucial step as our downstream partners particularly dislike certain impurities, such as those from PVC, due to their adverse effects.


What makes your technology so scalable?

Scalability is crucial for the effective recycling of plastics, especially considering the types and quantities of plastic waste. For example, in the U.S. residential sector alone, we generate about 4.8 million tons of flexible plastics and slightly more, around 5.2 million tons, of rigid plastics annually. However, the recycling rates are dismally low, with only 0.1% of flexible plastics and 10% of rigid plastics being recycled. If we consider just the residential sector, the challenge is monumental and would require almost 500 facilities of the size of our Akron operation to recycle all of what is currently being landfilled. 

To achieve the necessary recycling rates of 20-30% by 2030, we need to be able to rapidly scale up our technology. Our reactors are designed to be modular and decentralized, which allows for quick expansion based on demand and feedstock availability without extensive new infrastructure. This modularity and the inherent design to operate on a scale from 20 kTa to potentially 100+ kTa, based on local waste availability, highlights our ability to quickly contribute to meeting recycling goals not only in North America but globally. The scalability of our technology is integral to expanding recycling capacities, reducing landfilling or incineration and, reducing the use of virgin fossil fuel for plastics production.

 

The process of taking Alterra's product to market and then scaling it clearly requires a lot of external capital investment. Is the arena of pyrolysis a zero-sum game with other players in the market?

Indeed, the path to commercializing and scaling any innovative technology in the clean tech space is heavily capital-dependent. There is such a large and varied amount of discarded plastics and we are one of the many innovative technology solutions to tackle the plastic pollution challenge.  The principle of our technology is to convert plastics back to their basic chemical components, which can then be reused in various applications, thereby creating a closed-loop system for plastics.

Our approach complements existing mechanical recycling methods by enhancing the recycling rates and tackling plastics that are currently deemed non-recyclable.

This synergy between different recycling technologies underscores the need for substantial investment not only from private equity and venture capital but also from industry stakeholders across the value chain. The future of advanced recycling is bright, and it is expected to play a pivotal role in achieving the recycling targets set for the coming decades, promoting a circular economy where plastics are reused rather than disposed of.

 

Is the current level of plastic waste primarily an education issue?

The issue of plastic waste is complex and not solely an educational problem. While increased consumer awareness and participation are vital, as evidenced by higher separation and recycling rates in Europe compared to North America, the core challenge remains. The industry has the tools to improve collection and recycling rates, and it is crucial not to place the entire burden on consumers. The fragmented nature of waste management in the U.S., where many curbside pickups go to outdated single-stream facilities, highlights the need for investment in advanced sorting technologies to enhance recycling outcomes.

 

Can you explain how investment and regulatory landscape are shaping the future strategy of Alterra?

Our approach involves licensing our technology to global players in petrochemicals, waste management, and beyond, which allows for broader application without the constraints of our capital. However, the market readiness for such licensing is still maturing, necessitating further demonstration of our technology's efficacy through industrial-scale facilities with robust performance records. Regulatory support plays a pivotal role in this landscape, mirroring the support once necessary for the growth of renewable energy and electric vehicles. Clear, consistent regulations and significant investment are crucial to scale recycling solutions and replace virgin material inputs effectively.

 

What are Alterra's next steps in advancing recycling technology within the industry?

Looking forward, we are focused on expanding our impact through strategic licensing globally and direct operations in North America. This dual approach aims to establish more showcase facilities that demonstrate the viability and efficiency of our technology on a commercial scale, thereby encouraging broader adoption. The inevitable industry consolidation will likely delineate clear leaders based on technological performance, positioning us as a front-runner. This strategy aligns with the broader industry dynamics, where initial investments by major players are critical in developing advanced recycling infrastructures that support a circular economy.