PlasCred Enters into Commercial Supply Agreement with Circular Materials

Executive Summary

• PlasCred Circular Innovations Inc. executed a commercial agreement with Circular Materials to supply post-consumer flexible plastic waste collected in Alberta for advanced recycling into refined hydrocarbon condensate.
• The partnership operates under a tolling arrangement, providing PlasCred with a de-risked, steady feedstock supply while generating processing revenue, and supports Circular Materials' Extended Producer Responsibility (EPR) compliance objectives.
• The agreement secures a contracted portion of feedstock for the proposed Neos facility, which is designed to process 100 tonnes/day of plastic waste into 500 barrels/day of condensate, backed by a separate fixed-price 5-year offtake agreement at $120 CAD/barrel.

Key Details

• Counterparty: Circular Materials, a national not-for-profit Producer Responsibility Organization (PRO) managing EPR obligations for leading consumer goods, retail, food, beverage, and restaurant companies.
• Supply Scope: Post-consumer flexible plastic packaging collected in Alberta.
• Commercial Structure: Tolling arrangement where PlasCred is paid to process the material, de-risking feedstock procurement and transportation while supporting commercial processing revenue.
• Facility: Proposed Neos facility located at CN Rail's Scotford Yard in Alberta's Industrial Heartland.
• Processing Capacity: Up to 100 tonnes per day of mixed plastic waste.
• Output: 500 barrels per day of refined hydrocarbon condensate (drop-in replacement for fossil-derived naphtha).
• Offtake Agreement: Fixed-price five-year offtake contract at $120 CAD per barrel with a global commodities company.
• Selection Process: PlasCred was selected via a Request for Expressions of Interest (REOI) to identify technologies capable of recovering resources from plastic packaging waste under provincial EPR regulations.
• Future Scalability: The agreement covers a contracted portion of Neos's total feedstock requirements, with potential for increased quantities as PlasCred demonstrates processing capacity and operational performance.

Notable Quotes

• Allen Langdon, CEO of Circular Materials: "This initiative with PlasCred reflects Circular Materials' ongoing commitment to advancing the circular economy and leveraging new technology to help return recycled material directly back to producers for use in new products and packaging... This will drive local innovation for a plastics circular economy that is environmentally effective and economically efficient."
• Troy Lupul, President and CEO of PlasCred: "This agreement is a defining milestone for PlasCred and for Neos. It validates our technology, secures EPR feedstock supply backed by leading consumer brands in Canada, and strengthens project economics through a tolling arrangement where PlasCred is paid to process the material... We're proud to partner with Circular Materials to deliver a Canadian solution for one of the country's most challenging plastic waste streams."