Klean Industries Partners With RGH Systems to Develop a Waste Plastics to Energy Facility in Philippines

Klean Industries is pleased to announce that it has been engaged to complete a Detailed Feasibility Study (“DFS”) to design and build a 10,000 metric tonne per year waste plastic pyrolysis plant in the Philippines with RGH Systems Inc (“RGH”) a wholly owned subsidiary of REI Global Inc (“REI”). For the past 12 months, both companies have been working together to explore the possibilities of cooperation for the rollout of several facilities throughout the Philippines and possibly into other areas of Southeast Asia. With the initial round of funding completed, both parties are engaging through the essential steps necessary to advance the project. Some of the current activities include feedstock procurement, offtake sales, and securing a suitable site with the appropriate planning permission for permitting.

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This project will address several key issues designated under the United Nations Sustainable Development Goals and will create opportunities and benefits for the local economy in the Philippines. As the RGH project enters the final phases of the detailed analysis for the DFS and the due diligence needed to properly plan such a project, both parties are excited about the prospects of playing a significant role in creating the circular economy within the Philippines.

The parties plan to complete the DFS by the end of December 2022 and anticipate the project being financed before the end of the first quarter of 2023, with construction taking place in 2023 and operations starting before the end of the first quarter of 2024. This project will transform the polyolefin plastics such as PP, PE, LDPE, HDPE, and PS into high-quality fuels for reuse in the local economy. This plant will be fully integrated with Klean’s proprietary KleanLoop™ Blockchain SaaS platform which will track and trace all incoming feedstock, operations, carbon emissions offsets, and product sales, offering a level of transparency not seen before in the Philippines’ recycling industry. The KleanLoop™ platform is a key technology solution built for solving the climate change crises and preventing further environmental degradation in a socially responsible society.

“The waste plastic crisis is unfathomable; it is so out of control that we must do more to change this situation and this project represents an amazing opportunity to make sure these waste plastics don’t end up in waterways which eventually make their way into the ocean. The World Economic Forum (WEF) report, called “The New Plastics Economy: Rethinking the future of plastics”, has stated “that every year at least 8 million tonnes of plastics leak into the ocean, which is equivalent to dumping the contents of one garbage truck into the ocean every minute. If no action is taken, this is expected to increase to two per minute by 2030 and four per minute by 2050. The Oceans will have more plastics than fish by 2050 if the ongoing practice of dumping plastics continues, the WEF report states.” “The KleanTeam is pleased to be working with like-minded partners in Southeast Asia who understand the challenges and the benefits of taking a holistic approach to tackling the waste plastic recycling crisis,” commented Jesse Klinkhamer, Klean Industries, CEO.

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The Philippines ranked third as the world’s greatest plastic waste generator, with the second being Indonesia and China first. The Philippines generated an estimated total of 2.7 million metric tons of plastic waste last 2016. Even though China generates more plastic waste, the Philippines still contributed the largest amount of global plastic waste to the world’s oceans. This is because most of the population of the Philippines lives near waterways and rivers and in coastal areas. Additionally, coastal cities with urban drainages and paved surfaces and are situated in regions of high precipitation, such as Metro Manila, are observed to emit higher volumes of land-based plastic waste to the oceans.

In 2021, the Asia Development Bank (ADB) of the Philippines, calculated that Pasig River is the top contributing river of marine plastic waste, and it is in Metro Manila, a megacity located along Manila Bay. It contributes to 6.43% of the total plastic waste found in the oceans. Also, the Philippines is a tropical country, and it receives high volumes of precipitation every year. Surface run-off, stormwater, and sewage due to precipitation carry the plastic debris on land to the rivers, which in turn carries the plastics to the seas and oceans. Seven of the top 10 most plastic-polluted rivers in the world are found in the Philippines. A total of 4,820 rivers in the Philippines emit around 356,371 million metric tons of plastic waste into the ocean annually.

“RGH has strategically selected Klean Industries, a global leader in advanced thermal recycling technologies, to develop the most advanced full-scale resource recovery facility in Bulacan. RGH Systems is committed to global sustainability and participation within the circular economy with plans to scale the plastic processing volumes to over 100 metric tonnes per day by 2024. Once this facility is operational, it will run 24/7 for 330 days per year with an output of approximately nine million liters of clean diesel fuel,” commented Rene Ferrer, COO of RGH System Inc.

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