Enval secures seed-funding from syndicate of investors

Enval has obtained backing from a syndicate of investors to scale up applications of its patented waste processing technology. The technology extracts commercially usable aluminium, oil and gas from laminated packaging waste, such as drink cartons (e.g. Tetra Pak) and toothpaste tubes, allowing the waste to be completely recycled in an economically viable way.

Following results from Enval’s prototype demonstration unit, Tetra Pak and several other companies and government agencies have already expressed their interest, and wish to support the development of the technology and gain early access to its industrial applications. As well as laminated packaging, Enval also plans in the future to develop solutions for many other types of wastes.

“We are delighted to support a very promising technology that if successful on a large scale will substantially increase recycling in the UK” said Richard Hands, Environment Manager for Tetra Pak UK & Ireland.

The average European generates around 500kg of waste personally each year, and landfill is becoming increasingly expensive. Even though laminated packaging represents a fraction of this, the amounts are still substantial due to the overall advantages comparing to other kinds of packaging. The EU-25 produces more than 1 million tonnes of drink cartons per year. Of this, already approximately 30% is collected post-consumer and taken to paper mills to be partially recycled as the paper is recovered as fibres. However, the valuable aluminium contained in most of the residue from this recycling process is often lost, as most residuals are only recovered as energy or otherwise sent to landfill sites.

Formed in 2005, Enval was initially the PhD project of Dr. Carlos Ludlow-Palafox who has been working on the idea for over eight years alongside his supervisor, Professor Howard Chase, Professor of Biochemical and Environmental Engineering and former Head of Department of Chemical Engineering, at the University of Cambridge.

Carlos Ludlow-Palafox, Co-Founder and CTO of Enval, said: “The opportunity for Enval is immense. Drink cartons collection and partial recycling has been increasing at a rate of 12% per year since 1992, but there is tremendous room for growth if we can recover value from the residue of the paper recycling process, in a manner that is not only environmentally friendly but that also brings large economical advantages. We are confident that Enval’s success will result in many more tonnes of drink cartons being collected for recycling and that is why we are expanding our network of industry partners; we will capture the value in what business and households currently discard.”

The syndicate of investors, led by CREATE Partners, was formed when Enval won both the 50k and 3P Cambridge University Entrepreneurs (CUE) Business Plan Competition in 2005. The syndicate has made an initial seed investment of £200,000 with a view to investing further amounts over the next three years. This investment will allow Enval to build a first-class execution team, to develop a pilot plant for industrial demonstration over the next 6 to 9 months and to secure initial contracts with industry partners around the world.

Boyd Mulvey, Chief Executive of CREATE, said: “Enval is a ground-breaking opportunity. The new process offers industry a simple and cost-effective solution to solving a serious environmental problem. Enval has a robust, patented technology, and, now with venture capital and angel investor backing, the company has the financial resources to deliver that solution. CREATE has worked successfully with GEIF Ventures, Cambridge Angels, Cambridge Capital Group and The University of Cambridge Challenge Fund to provide the investment into this compelling business plan.”

Carlos Ludlow-Palafox said: “We are very pleased that our investors have made this commitment to Enval. It allows us to accelerate our business plan and realise our goal of helping to tackle the mountain of rubbish created by consumer packaging. Starting from the CUE business plan competition, the investment process has been a positive experience for us and it has strengthened the company’s commercial potential. Enval and its investors worked hard together and we have developed a great partnership.”

Robert Sansom from Cambridge Angels commented: “We’re excited to be investing in a company that won the CUE Business Plan competition. We believe that Enval’s environmental contribution by enabling aluminium recycling from waste packaging has great potential.”