NOVA Chemicals Partners with Amcor to Provide Recycled PE

In a significant move towards promoting sustainability in the packaging industry, NOVA Chemicals, a leading Canadian petrochemical company, has recently announced plans to supply recycled polyethylene (R-PE) to the global packaging giant, Amcor. The collaboration, outlined in a memorandum of understanding unveiled this week, outlines Amcor's acquisition of recycled SYNDIGO brand PEs, which will be produced at NOVA's upcoming mechanical recycling facility in Connersville, Indiana, USA.

This ambitious project, first introduced in July, is slated to commence operations in 2025, signaling a proactive step toward enhancing environmental responsibility in the production and use of plastic materials. The companies involved have chosen not to disclose specific financial terms or intricate details regarding the volumes of recycled polyethylene to be supplied. This collaboration underscores a joint commitment to sustainability in the packaging industry and signifies a notable stride towards circular economy practices.

NOVA Chemicals, looking beyond the immediate collaboration, has outlined an extensive vision for the expansion of its polymer recycling operations throughout North America over the coming years. The company aims to play a leading role in the industry by achieving a remarkable 30% share of total polyethylene sales through products that incorporate recycled materials. This forward-thinking approach aligns with the broader global shift towards sustainable practices, emphasizing the importance of recycling and reducing the environmental impact of plastic waste.

Despite the optimism surrounding this collaboration, NOVA Chemicals has faced challenges in its polyethylene supply chain. The company has recently declared force majeure due to the unexpected shutdown of two cracking units in Sarnia, Ontario. This force majeure declaration encompasses low-density polyethylene (HDPE), high-density polyethylene (LDPE), and the PE brand SCLAIR PE produced in the Sarnia region. Such unforeseen events highlight the complexity and vulnerability of supply chains in the petrochemical industry, underlining the need for diversified and resilient production systems.

Nova Chemicals boasts substantial production capabilities, with its facilities in Ontario, Canada, able to produce 457,000 tonnes per year of HDPE, 220,000 tonnes per year of LDPE, and 158,000 tonnes per year of linear low-density polyethylene (LDL). Despite these current challenges, the company's long-term commitment to expanding its recycling operations suggests a strategic pivot towards sustainable practices, aligning with the evolving demands of environmentally conscious consumers and regulatory frameworks.

NOVA Chemicals' collaboration with Amcor to supply recycled polyethylene for flexible packaging films marks a significant step towards a more sustainable future in the petrochemical and packaging industries. The upcoming mechanical recycling plant in Indiana reflects a commitment to innovative solutions for managing plastic waste. While facing challenges in its polyethylene supply chain, NOVA Chemicals' dedication to expanding recycling operations signals a forward-looking approach that aligns with the growing global emphasis on environmental stewardship. As the industry grapples with supply chain complexities and evolving market dynamics, partnerships like these showcase the potential for positive change and the integration of circular economy principles into mainstream production practices.