Innovate Recycle (IRL) is one of the only business in the UK capable of recycling end-of-life polypropylene (PP) carpet into an almost pure polypropylene pellet.

This process is one of the UK’s first, helping to solve a hugely damaging plastic pollution problem with a business model that has potential to be financially lucrative. IRL benefits from patent-protected technology for the unique deconstruction of waste carpet in such a way that it can then be pelletized and sold into high-end plastic manufacturing. Over a timescale of more than five years, IRL plans to develop a network of regional production sites throughout the UK, each should be capable of deconstructing c.150,000 tonnes of waste carpet, and, in turn, creating c. 90,000 tonnes of saleable polypropylene at a pricing of ~c.£1,000 per tonne plus or minus 20%.

You can visit their website or request a meeting with the team here.

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IRL research has shown that, up until now, the disposal of waste carpet presents enormous problems:

1. c. 75% of waste carpet is plastic based.

2. There is a dire shortage of landfill sites.

3. Landfill tax rising to ~£126.15 per tonne in 2025.

4. Incineration is undesirable but one of the only alternative to landfill.

5. Use in equestrian surfacing has recently been banned by the Environment Agency (previously the only realistic alternative).

There are at least 500,000 tonnes of waste carpet per annum (Biffa, 2023). However, as a consequence of the difficulty in quantifying this, actual numbers may be a lot higher based on an estimate of the quantity sold and the average lifetime by the consumer. This waste presents an enormous, untapped resource that, if sent to landfill, will take up ever reducing capacity, be expensive and pollute the environment.

With IRL’s proof of concept now firmly established, over the next six months, the company plans to scale up production, requiring an expansion of the workforce; develop training and maintenance programmes; and develop the sales opportunity for the recycled polypropylene pellets. Innovate Recycle has built one of the UK’s first true carpet recycling facility in Northamptonshire to transform the way in which the UK utilises post-consumer and industrial carpet waste. IRL takes end-of-life waste carpet, deconstructs it and recaptures polypropylene and calcium carbonate for reuse in a wide range of industries and applications, thus reducing and removing material from landfill or incineration. IRL intends to install additional process lines around the UK, creating a sustainable solution for councils, businesses and the carpet industry, and ensuring that the valuable resources available within waste carpet are not lost to incineration, export or sent to landfill – making an important contribution to the UK’s emerging circular economy. Innovate Recycle will also establish synergistic relationships with global waste management providers. This should allow providers to gain vertical access to Innovate Recycle’s industry leading recycling capability, patented processes and technology, help them reduce carbon footprint and improve associated metrics reported to their investors, and become future proofed against any incoming landfill taxation measures. With IRL’s proof of concept now firmly established, over the next six months, the company plans to scale up production, requiring an expansion of the workforce; develop training and maintenance programmes; and develop the sales opportunity for the recycled polypropylene pellets.

Innovate Recycle turns end-of-life carpets from waste to worth. IR takes end-of-life and offcut carpet from local authorities, waste handling partners, industry distributors, retail partners, and large-scale, new homes carpet fitters. Utilising a proprietary, fully mechanical process, Innovate Recycle separates PP from the calcium carbonate latex binding. This reclaimed PP, deconstructed first as fibre, is then baled and pelletized. When the reclaimed material is turned into this valuable form, it will be sold to the manufacturing supply chain, via brokers or directly to end users, ready to begin a new product lifecycle. IRL’s main product is the Innovate rPP (recycled polypropylene) NORPLAS pellet range, characterised by high tensile strength; appropriate melt flow; and colouring capability. It is suitable for a wide range of industries and plastic goods, including injection moulding, 3D printing and automotive. With the benefit of a UK exclusivity agreement, Innovate Recycle is using patent protected proven machinery and technology that was developed and refined in the US to create its first plant in Northampton, England. With this facility, the company’s first process line should process up to 20,000 tonnes of carpet waste per annum at full capacity. This should allow IRL to support, enable and advise carpet manufacturers on how to create a more sustainable material benefiting their business.

According to Innovate Recycle’s internal market research, the global market for rPP is increasing from ~$8bn to $13.4bn by 2029. IRL also observed the increasing demand for a new end-of-life carpet solution, as well as the increasing need and demand for recycled content in UK and European manufacturing. With its green innovation approach, Innovate Recycle believes that it will be one of the first in the UK to recycle post-consumer and industrial carpet at volume. IRL’s vision is to be on the market-dominating polypropylene-based carpets and the retrieval of polypropylene and calcium carbonate for use across industry supply chains. The British Plastics Federation stated that PP is one of those most versatile polymers available with various applications, both as a plastic and as a fibre, in virtually all the plastics end-use markets. With use for a wide range of products, and an increasing emphasis on recycled content, Innovate Recycle believes that the market for reclaimed polypropylene is significant and growing. IRL aims to work with major automotive Original Equipment Manufacturers, customer aware carpet manufacturers and retailers, environmentally focused local authorities, and the UK Government. This first prototype has produced product in relatively small quantities to be sold predominantly for testing by the market. IR expect the major opportunity to lie in the sale of recycled polypropylene tailored to the buyer’s particular specification. With this IR hope to increase the price for a basic product from c. £450 per tonne to in excess of £1,000 per tonne for specific colours and other pellet characteristics. Accordingly, small quantities of pellets have been supplied to prospective buyers for their own testing prior to placing large and repeat orders.

Incorporated in 2018, Innovate Recycle was awarded £2.35m from the “Getting Building Fund” in 2020 via South East Midlands Local Enterprise Partnership (SEMLEP). Following this, IRL has gone on to raise over £6m from equity investors, including Active Partners, Crowdcube and leading industry partners. In 2021, IRL was named a“Flooring Innovation Winner”’ at the Flooring Innovation Awards. Innovate Recycle established its first facility in Northampton, England in 2022 and IRL state to produce c.25 tonnes of polypropylene per week. Its main product, the Innovate rPP NORPLAS pellet range, is starting to be sold into UK manufacturing, where there is a healthy sales pipeline in place. Please note, forecasts are not a reliable indicator of future performance. Innovate has partnered with Cormar Carpet Company, Designer Contracts, Biffa, and Headlam for the delivery of its target material. As of September 2024, Innovate Recycle is focusing on the global import of carpet material, sales and the development aims of approximately 1,100 tonnes of rPP per month. Following previous funding rounds, totalling c. ~£10m, which enabled the establishment of the first and successful prototype line in Northampton, Innovate Recycle is now seeking to raise up to £2m to provide the funds the scale the business to achieve a cash positive position.

This funding is intended to to build staffing to enable a ramp up of production to ~c.100 tonnes per week; to invest in an inventory of spares; pre planned maintenance programmes; and fixed costs. Over the next six months, IRL’s priorities include expanding production capacity, enhancing workforce efficiency with a two-shift system, and developing premium product lines. Against this background, IRL is confident that it will be profitable and cash generative by the summer of 2025, at which point, further funding, in the form of grant, debt or equity, may be sought to develop further sites. A second site has been earmarked in Scotland for 2026.

Bob Woods MBE – Chair

Bob spent his entire career in the financial services sector. He founded wealth management specialist Mattioli Woods plc in the early ‘90s, taking the business from startup to AIM listing. Bob received an MBE in 2017.

Joseph Eccleston – Founder & Director

Joseph was born into the carpet industry. After taking over the family retail carpet business, he became aware of the amount of the waste generated by the industry every year and began researching ways of recycling. Joseph then created the vision and brought together the practical delivery that is Innovate Recycle and has been leading the company’s development since 2013.

Cris Stephenson – Advisor

Cris is an expert in operating recycling lines and comes from Environcom, the largest independent WEEE business in the UK. As Environcom’s CEO, he won “Electronics CEO of The Year” for masterminding the rejuvenation of the business that ultimately led to its sale to Enva in 2023.

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This page was approved by Kemeny Capital as a financial promotion 2nd December 2024.

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