France Supports Domestic Plastic Recycling: Carbios Restarts PET Chemical Recycling Project

On September 25, Specialized Plastic Vision learned that Carbios recently announced plans to restart the construction of its PET chemical recycling plant located in Longlaville, France, by the end of 2025.

The French biotechnology company stated that the new regulations in France regarding the domestic production of recycled plastics are a significant driving force for its reinvestment in the project.

In January of this year, Carbios postponed the construction plan of the PET depolymerization plant by 6 to 9 months due to a delay in funding.

Currently, Carbios is still awaiting 42.5 million euros in public funding support, which includes 30 million euros provided by the "France 2030" plan and 12.5 million euros from the Grand Est region where the factory is located.

The revised timeline for the project is based on the assumption that funding will be in place within the coming months, and the factory is expected to be officially operational in the second half of 2027.

Carbios stated that, with the support of a favorable regulatory environment, the pre-sale of recycled PET produced by this future plant is steadily progressing.

To secure additional non-dilutive financing, potential investors require Carbios to complete a "significant portion" of the pre-sale tasks for the plant's annual capacity of 50,000 tons.

The company confirmed that it has not yet reached this pre-sale scale, but believes that the new regulations in France will support its pre-sale volume.

The new regulation in France stipulates that manufacturers incorporating domestically produced recycled plastic into their products will receive financial subsidies. The regulation will officially take effect on January 1, 2026.

The subsidy amount for hard-to-recycle resins used in contact-sensitive packaging can reach up to 1,000 euros per ton (temporarily reduced to 550 euros per ton during the period of 2026-2027).

Carbios stated in a press release: "With this policy, we are able to supply the French market's packaging customers with recycled PET—its quality is equivalent to virgin PET, significantly superior to mechanically recycled products, and competitively priced; at the same time, we can also process complex waste that is currently non-recyclable."

The relevant regulations in France recognize both mechanical recycling and chemical recycling of plastics. To qualify for subsidies, the recycled plastic used in products must meet two conditions: (1) the production site must be within a maximum radius of 1500 kilometers from the center of France (coordinates: 46°29'38" N, 2°36'10" E); (2) the production site must be located within an EU member state or in a third country that meets equivalent EU standards.

In 2024, Carbios's revenue was 136,000 euros (24,000 euros in 2023); in 2024, the net loss was 33 million euros (a loss of 27 million euros in 2023).

In order to improve its financial situation, the group announced in December 2024 the implementation of cost control measures, including the layoff of 40% of its employees.

As of June 30, 2025, these measures have helped the company improve its balance sheet. Carbios had cash reserves of 72 million euros, with a cash availability period of over 12 months.

Vincent Kamel, CEO of Carbios, stated: "Our effective control of expenses and robust cash reserves allow us to confidently advance our projects. Recent positive developments at the regulatory level, along with our discussions with financial and industrial partners, provide additional assurance for the feasibility of our plans. With the recognition of our technology's value by customers, the reliability of our business model, and the support of our team's execution capability, we will enter the next phase with determination and confidence."

The Longlaville plant is expected to process approximately 50,000 tons of post-consumer PET waste each year, equivalent to the recycling of 2 billion colored PET bottles or 2.5 billion PET trays. The site of the plant has reserved space for future capacity expansion.

Carbios' enzymatic recycling process enables the efficient, solvent-free recovery of PET plastics and textile waste, ultimately producing products that are comparable in quality to virgin materials.