Licella Holdings completes merger of iQ Renew with Stop Waste
In Australia, Licella Holdings Ltd (Licella), global pioneers in chemical recycling, has completed the merger of its subsidiary iQ Renew Pty Ltd (iQR) with Stop Waste, owner and operator of recycling facilities in Australia. iQR will be one of the first companies globally to combine physical and chemical recycling, at a time when the world is searching for new recycling pathways following China’s effective ban on imported foreign waste.
In 2018, Stop Waste made an EBITDA of approximately AU$9 million and totals 60 people – employees and contractors. Through the merger, Licella has a pathway to earn up to 32 percent of the iQR business. As part of the overall transaction share swap, Stop Waste Holdings, owners of Stop Waste, have also made an investment into Licella.
iQR now owns and operates the portfolio of Material Recovery Facilities (MRFs) and secondary processing facilities on the New South Wales (NSW) Central Coast, an hour north of Sydney, Australia. These facilities include two for primary recycling (sorting) and two for secondary recycling (processing single streams for re-manufacture).
Combined, iQR’s facilities process over 100 000 tonnes per annum of recovered resources, collected kerbside by councils.
I am pleased to confirm that we have completed this significant transaction, which merges iQ Renew and Stop Waste. Stop Waste is a cash flow positive business, in which Licella Holdings is now a shareholder said Dr Len Humphreys, CEO of Licella.
Plan to build commercial-scale Cat-HTR plant
In addition to its physical recycling operations, iQR have the exclusive licence to the Cat-HTR platform for End-of-Life Plastic and End-of-Life Tyres in Australia and New Zealand. Moreover, Licella and iQR’s new global joint venture, iQ Renew Wood Recycling, is an opportunity to extract value from construction and demolition (C&D) wood waste.
To support both opportunities, iQR are committed to funding and building a commercial scale Cat-HTR plant in the next 18 months. As part of the partnership, Danial Gallagher, founder of Stop Waste, has been appointed CEO of iQR, and will also join the Licella Board as a Non-Executive Director.
I am an absolute believer in the Cat-HTR technology and this was a key driver in the decision to merge Stop Waste with iQ Renew. We continue to expand our recycling business into exciting new areas, including construction and demolition wood waste, driving innovation, maximising value and minimising waste in resource recovery, said Danial Gallagher.
iQR has a number of organic and acquisitive expansion plans that will be rolled out during the course of 2019. By investing in its primary and secondary processing facilities, and building towards its Cat-HTR chemical recycling facilities, iQR is committed to recovering more and wasting less – offering intelligent solutions to resource recovery.
In addition to our joint ventures in Canada with Canfor Pulp (Centree) and in the UK with Armstrong Energy (Mura), this new venture gives Licella’s Cat-HTR platform a third pathway to commercialisation. We look forward to growing this additional business opportunity both within Australia and globally, Dr Humphreys said of the iQR partnership.