Plastic recycling story - BlueAlp

Circular Plastics Q&A: In-Depth with BlueAlp CEO Valentijn De Neve 

Valentijn De Neve, CEO of BlueAlp, a pioneering company that specializes in pyrolysis and chemical recycling technology, recently spoke to Topsoe’s Milica Folic as part of the Circular Plastics podcast.

The following Q&A has been developed from their conversation. Click here to listen to the full episode: Circular plastic podcast

Milica Folic (MF): Could you tell us more about BlueAlp technology and its place in the circular plastic value chain? You mentioned preparing oil for steam crackers and using mixed plastic waste. Can you elaborate on the pyrolysis technology and its development?

Valentijn De Neve (VDN): Our journey started over 15 years ago with a pilot plant in Switzerland's Alps, hence the name BlueAlp—"Blue" for making oceans plastic-free. The initial focus was on creating diesel and gas oil from plastic waste. Key lessons from our early pilot plant include the need for a truly continuous process and scalable design. This mindset led us to develop a reactor and full process that are both continuous and scalable.

MF: Continuous process and scalability are crucial. Can you explain more about these aspects and their significance for your business?

VDN: Scalability is essential in the petrochemical world. Our first commercial plant, Renasci, has a design capacity of 24 kilotons from a single train, which is significant. We’re now finalizing a licensing package for a single train with a 70-kiloton input capacity. This scale is meaningful for centralized locations with cracker integration benefits. Continuous processes are robust, efficient, and stable, making them critical for large-scale operations.

MF: Since the startup of the first plant in 2014, what challenges have you faced as a technology developer, especially in an evolving regulatory landscape?

VDN: Funding is crucial for technology development. Initially, our focus was on creating diesel and gas oil, but we shifted to making cracker feedstock about ten years ago. A significant challenge has been ensuring a narrow boiling range in our pyrolysis oil, reducing treatment costs before it can enter steam reformers. Partnerships with Shell and Borealis have been vital, providing funding, knowledge, and experience to scale up the technology and handle fluctuating feedstock.

MF: How do you see the regulatory environment changing, and can you tell us about your recent partnership with the mechanical recycling company Recupero Etico Sostenibile (RES) in Italy?

VDN: European regulations have progressed, with initiatives like the Packaging and Packaging Waste Regulation (PPWR) creating demand and clarity, essential for attracting investors. While I wish for faster permit processes and aligned waste status across Europe, the trend is positive. Our partnership with RES is a milestone, demonstrating that pyrolysis is a viable business model also for mechanical recyclers and waste managers. This helps divert plastic waste from incineration and landfill towards recycling.

MF: Can you discuss the flexibility of BlueAlp’s technology in handling mixed plastic feedstock, considering the waste hierarchy and sustainability aspect?

VDN: The plastic waste feedstock is abundant, currently being incinerated or landfilled. Regulations are increasing costs on carbon emissions, prompting waste incinerators to consider recycling. Mechanical recycling and advanced recycling, like pyrolysis, are both essential. Our technology is designed to tolerate varying feedstock compositions, crucial for processing the fluctuating waste generated by society.

MF: What are your thoughts on the future need for pyrolysis oil upgrading technologies as more pyrolysis oil becomes available?

VDN: Upgrading will be key as the volume of recycled material increases. Contaminants in plastics will pose a challenge, and while we can remove some in our process, downstream upgrading steps are necessary. This allows for a wider feedstock acceptance and better contaminant management, ensuring the production of high-quality pyrolysis oil for steam crackers.

MF: BlueAlp offers licensing and engineering procurement and fabrication (EPC) options. Can you explain these models and why you don’t opt for a build-operate model?

VDN: We started with EPC projects, building the Renasci plant fully. However, the market's scale requires us to offer flexible solutions. Licensing allows us to reach more customers, especially larger capacities. Customers prefer our full installation service for 24-kiloton plants, but petrochemical companies value the flexibility of the licensing model for larger capacities. We aim to support the industry with scalable solutions, leveraging partnerships with experienced EPC companies.

The own and operate and why we don't do that is because we believe that our focus should be on having the best technology and licensing it out, as well as building units. There are companies with long operational experience in running process plants, and the impact we can make is greater if we focus on technology and licensing. Owning and operating would limit our scalability and ability to license as widely.

MF: Looking at the competitive landscape, who do you think will also succeed? Can you comment on companies doing something smart globally?

VDN: In this industry, we need multiple companies to succeed. We're entering a key year for the industry, with companies like Plastic Energy starting up plants in collaboration with Sabic, and MURA commissioning their plant in the UK. In the US, Alterra has been running a plant for a while with strong partnerships. Multiple players are making significant strides, and it's important for the industry that they all succeed to demonstrate what's possible.

MF: Considering the global nature of the decarbonization challenge, what's your long-term vision for BlueAlp globally?

VDN: Making plastic circular is a global challenge. Economies of scale are better achieved globally. More licensed plants mean better economic returns and continuous learning, making our technology more competitive. We are headquartered in the Netherlands but operate globally; there are active markets in the US and Asia, particularly Korea is showing a lot of activity right now. We are organizing and working with customers around the globe.

MF: Your goal is to decarbonize and reduce emissions from your process. How are you achieving this and what is the timeline?

VDN: We focus on having the most sustainable and attractive technology. The first big step was scaling up to 70 kilotons, as integration makes sense at larger scales. We’re nearing completion of this, and our next step is decarbonization and integration. In our pyrolysis process, gases and bitumen-like fractions are produced. For decarbonization, it’s key to co-locate and integrate these gases with downstream crackers, and electrify the process instead of using gas for heating. We also explore applications for the bitumen fraction in different contexts.

MF: Finally, what are the next announcements we can expect from BlueAlp?

VDN: We expect new announcements on partnerships, driving this transition. Later this year, when the full licensing package for the 70-kiloton capacity is finalized, it will be a significant milestone. Decarbonization will take more time, but we are progressing steadily.

MF: It seems like you are moving fast, even though new technology development may seem slow to outsiders. Thanks a lot, Valentijn, for sharing insights about BlueAlp’s differentiators and your position in the European pyrolysis community. Best of luck!

BlueAlp, a fast-growing scale-up whose purpose is to give all plastic waste a potentially infinite life. Learn more by visiting www.bluealp.nl and www.linkedin.com/company/bluealp