When thinking of venture-backed startups, I rarely see the chemicals industry mentioned. Why was Nexus Circular founded, and how has its technology been brought to market?
Nexus Circular was inspired by the founder Jeff Gold’s desire to make a significant environmental impact through recycling plastics. In 2007, Jeff read an article in an in-flight magazine about breaking down single-use plastics to their building blocks for reuse, which sparked the idea. He started Nexus Circular in 2008 with a lot of smart people interested in solving this important and impactful environmental challenge. Nexus initially focused on laboratory tests, gradually progressing to a small pilot facility. In 2015, we were ready to scale up, so Cox Enterprises – a privately held global telecommunications, automotive services and media group – invested in Nexus. This partnership enabled the construction of a demonstration facility and paved the way for the company’s first commercial facility.
Scaling IP & technology within the chemicals space is not without its challenges. How difficult has it been to go from laboratory to market-wide credibility?
Scaling Nexus’s technology has been challenging but achievable, resting on the principles of pyrolysis and innovative processing techniques. The pyrolysis process involves converting plastics into their basic building block components by applying heat without oxygen. I envision it like disassembling a LEGO structure. Heat simply breaks the LEGO structure back down into the individual LEGO bricks. Nexus has developed a unique system that addresses both the front-end intake of difficult-to-recycle plastics and the back-end specifications required by global offtake partners like Shell and Chevron Phillips Chemical. This dual-focus approach has allowed Nexus to broaden the types of plastics it can recycle, enhance economic feasibility, and ensure scalability. We are now operating our third generation (Gen-3) technology and process, scaling up and producing at a much faster pace. We believe in the scalability of advanced recycling and consider it essential for meeting future plastic recycling targets. In my opinion, advanced recycling is the only way we are going to achieve ambitious sustainability commitments. With the anticipated increase in plastic production, advanced recycling represents a viable alternative to extend the lifecycle of plastics, returning the plastic to productive use to the supply chain. Nexus’s success and growth in the industry, alongside improving economics and reducing technology risks, are seen as indicators of the economic viability and scalability of advanced recycling.
In a recent interview, you mentioned that over the coming decade consumers will become much more educated on how to sort their plastic waste. Where are we in the plastics-public narrative and what part can Nexus play?
We are firm believers that plastics are a necessary part of our modern lives, ensuring food safety and security, the sterile delivery of healthcare and pharmaceuticals, and the ability for lightweighting for reduced GHG emissions across many sectors. Plastics are a resource that can perform a wide range of demanding functions because they are incredibly versatile materials. And we believe there is no reason that plastics can’t be recycled over and over again. There is an education required on recycling practices among consumers and in the initial design of products to enable continued recyclability. Mechanical recycling has been developed to handle PET, HDPE and PP packaging formats with fairly good success.
Nexus aims to complement mechanical recycling through advanced processes by managing many of today’s plastic formats, such as films, flexible packaging and foams, which often end in landfills. This approach addresses the limitations of current recycling methods, improving the overall recycling ecosystem and with it, the perception of plastics and plastics recycling.
Will there be an inflection point in the near future where advanced recycling technologies hit commercial viability across industry?
Nexus has set a goal to process 5 billion pounds of post-use plastic by 2030 and is on track to meet this expectation. This goal aligns with the commitments of our off-take partners, covering 20 to 30 percent of what they have pledged by the same timeline. Do we think there will be an inflection point? We believe that we can reach the point of decoupling manufacturing from extraction and reducing the dependence on new fossil-based resources by ensuring that the plastic resources that we already have above ground stay in play.
Considering the demand for plastics is set to double by 2050, what role will advanced recycling technologies play in the long term?
Advanced recycling technologies are poised to become the norm, with an increasing recognition of their necessity as plastic use grows. This growth in plastic, unfortunately, will likely lead to more visible environmental pollution, which in turn will drive the push for effective recycling solutions. Mechanical recycling has its limitations, unable to process certain types of plastic or produce materials safe for food contact. Innovative processes like Nexus are also the only option for delivering recycled content that can be used in sensitive applications such as food, pharmaceutical and medical packaging applications, which demand virgin-like quality. Advanced recycling technologies will be essential for closing the loop on a broader spectrum of plastics that cannot be easily recycled by mechanical recycling, returning those plastics to productive use in the supply chain and reducing the dependence on fossil fuels. Awareness and regulatory understanding are improving, which highlights advanced recycling’s role in achieving a more sustainable plastic lifecycle.
NGOs may express skepticism at any company linked to plastics, even those looking to recycle it. What is typically their argument, and how do you counter it?
Criticism from NGOs often stems from a fundamental opposition to plastics, leading to claims that recycling is ineffective and should not be pursued. This stance supports a narrative that seeks to eliminate plastic use entirely. However, undermining recycling overlooks the potential for significant environmental benefits and ignores the practicalities of our current reliance on plastics. Education and firsthand experiences, such as tours of recycling facilities, can shift perspectives by demonstrating the tangible results of recycling technologies. This approach helps to bridge the gap between skepticism and support, illustrating the viability and necessity of advanced recycling.
The chemicals industry struggles to attract and retain talent, often losing out to more ‘attractive’ industries. What does Nexus do differently?
Nexus has been incredibly fortunate to attract a diverse team passionate about making a positive impact on the world, validating the appeal of doing meaningful work in manufacturing and advanced recycling. The key to attracting young talent lies in emphasizing the importance of manufacturing to economic growth and environmental sustainability. By highlighting the role of innovative recycling technologies in addressing global challenges, we can appeal to the desire among young professionals to contribute to meaningful change. This narrative, supported by a culture of inclusivity and a commitment to environmental stewardship, positions Nexus as an attractive option for those looking to make a difference.
Looking forward, what do you hope to see in the future for Nexus and the broader advanced recycling industry?
I envision a future where advanced recycling companies like Nexus are not unique but are part of a widespread and accepted approach to managing plastic waste. The goal is for resource conservation in the form of recycling to become second nature, both in households and across industries, supported by education and infrastructure that facilitate efficient recycling practices. Success in this area will also hinge on overcoming skepticism and misinformation, fostering a collaborative environment where both mechanical and advanced recycling technologies thrive. Ultimately, the aim is for a seamless integration of advanced recycling into our daily lives, contributing to a sustainable cycle of plastic use and reuse.
