Plastics recycling in Canada is gaining renewed momentum as PlasCred Circular Innovations Inc. has secured a non-binding term sheet from the Business Development Bank of Canada (BDC) for up to $8.5 million in senior debt financing.
The move follows a $5 million grant from Emissions Reduction Alberta (ERA) and $500,000 in R&D support from Alberta Innovates, marking steady progress toward construction of the company’s first commercial-scale facility.
PlasCred’s planned Neos facility in Fort Saskatchewan is designed to process 100 metric tonnes of post-consumer plastic waste per day, converting it into about 500 barrels of Renewable Green Condensate
. This low-sulphur, low-carbon naphtha substitute is intended as a feedstock for virgin plastic production, addressing both plastic waste diversion and decarbonization of petrochemical supply chains.
The plant’s location at CN Rail’s Scotford Yard enables streamlined logistics, while lifecycle assessments forecast annual avoidance of 51,000 tonnes of CO₂-equivalent emissions. All production is secured under a five-year offtake agreement with a Global Commodities Company at $120 per barrel including freight, providing a predictable revenue baseline.
Financing and Construction Roadmap
The Neos facility carries an estimated $25 million capital cost. With ERA’s grant and BDC’s proposed term sheet, more than half of the required capital is identified. Equity discussions remain ongoing, with construction targeted for early 2026 and commissioning expected later that year.
BDC’s term sheet is non-binding and subject to further due diligence, approvals, and definitive legal agreements. While this does not represent a final commitment, it signals growing institutional interest in scaling Canada’s circular economy infrastructure.
Neos builds on over two years of continuous operations at PlasCred’s pilot-scale Primus unit in Calgary, where the company refined its patent-pending dual-catalytic pyrolysis process. The commercial design emphasizes modularity and replication potential, providing a pathway to PlasCred’s larger-scale Maximus platform.
Maximus, proposed for co-location at Scotford Yard, is initially planned at 400 tones per day capacity—roughly 2,000 barrels per day of condensate—and could scale up to 2,000 tones per day and 10,000 barrels per day through phased expansion.
A distinguishing feature of PlasCred’s approach is its integration of Palantir Foundry, an industrial AI platform. By embedding real-time monitoring of feedstock composition, facility performance, and product quality, the system enables auditable lifecycle assessments, Extended Producer Responsibility (EPR) compliance, and issuance of plastic credits. This digital infrastructure also provides a full-process digital twin, supporting optimization and transparent verification for regulators and customers.
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