The VTT Technical Research Centre of Finland (Espoo; www.vttresearch.com) said it plans to spin out its new company Olefy Technologies in October.

Olefy has created a patent-pending thermal conversion technology that transforms waste plastics into virgin-grade feedstock. The technology has been developed as part of VTT LaunchPad, which supports teams to develop centre-owned intellectual property into fundable, spin-off firms.

VTT said the Olefy single-step process is based on gasification, and the yield is as high as 70% with output quality equal to oil-based virgin olefins and suitable for pharma and food uses.

“This technology enables direct parallel integration of the Olefy molecules into existing steam cracker sites around the world to effectively produce virgin-grade olefins, which are converted back to virgin-grade plastics,” said Timo Sokka, head of business at Olefy. “Significantly lower capital expenditure requirements, accelerating market demand and price premiums make these investments also very attractive for the steam cracker operators.”

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VTT has been running the process at pilot scale at its Espoo centre and said it expects to start operating a first industrial demonstration facility by 2026.

The company is currently discussing partnerships and negotiating with investors for scaling, business development, and technology licensing. It has filed eight patent applications for the technology.