Netherlands 18 Million Euro Plastic Recycling Subsidy Launched! 9 Major Projects Covering Sorting, Chemical Recycling and More Across The Entire Chain

As a pioneer of the circular economy in Europe, the Netherlands has long been at the forefront of plastic recycling and regeneration technology. However, since 2024, the country's plastic recycling industry has experienced an unprecedented wave of bankruptcies, with several once-prominent innovative companies going under. At the same time, the Dutch government continues to invest substantial funds through programs like "Circular Plastics NL" to promote technological upgrades and industry chain integration. This stark contrast reflects the challenging balance the Dutch plastic recycling industry faces between policy support and market pressures.

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Strong government funding support

To address the industry crisis and promote the development of a circular plastic economy, the Dutch government will launch large-scale funding support through the Circular Plastics NL (CPNL) program in 2025. The program is implemented by the Netherlands Enterprise Agency (RVO) on behalf of the Ministry of Climate and Green Growth, as part of the National Growth Fund (NGF).

CPNL is a project funded by the Dutch government in 2023, aiming to achieve 100% plastic circularity by 2050. The project is divided into eight directions, namely: system integration and design, characterization, sorting and cleaning, polyolefin packaging mechanical recycling, styrene materials recovery and regeneration, chemical depolymerization, thermochemical recycling, incubator, and circular space.

2025 Funding Overview:

Grants totaling over 18 million euros have been awarded to nine plastic recycling projects, nearly double the amount of the previous round.

Driving over 10 million euros in private co-investment demonstrates the willingness of businesses and knowledge institutions to invest in a circular plastic economy.

Due to some applications not fully meeting the evaluation criteria, the total budget of 42 million euros for CPNL 2025 has not been fully allocated. The remaining approximately 24 million euros is planned to be reallocated to the 2026 funding round to continue supporting industry innovation.

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Key funded innovation projects cover the entire chain.

The funded projects cover various segments of the plastic recycling industry chain, including intelligent sorting, chemical recycling, specialized recycling, food-grade safety recycling, and microplastics management.

Online Analysis - Plastic Sorting 4.0

Develop new sensor technology and artificial intelligence models to better identify and sort plastics by type, subtype, and composition. The project is working with partners to develop the next generation of sorting equipment, aiding in the production of higher quality recycled plastics.

2. AI-Controlled Household Waste Sorting Management System (ChowsAI)

The project involves developing intelligent technology based on artificial intelligence to improve the sorting efficiency of household plastic waste. In collaboration with partners, the project aims to develop real-time monitoring, process control, and digital twin technology for sorting lines, with the goal of enhancing the quality of recycled materials, reducing waste, and strengthening the plastic recycling industry chain.

3. Polarization-based Identification of Plastics for In-line Sorting (polarID)

Develop a new optical measurement system that uses polarized light to identify and sort plastic films and sheets in real-time. Through machine learning and industrial validation, this technology is expected to achieve more efficient and cleaner plastic recycling.

4. Optimal Chain for Efficient and Advanced Recycling of Mixed Plastic (OCEAN-RMP)

The project studies how to more efficiently pretreat mixed plastic waste and process it into high-value feedstock for chemical recycling. In collaboration with partners, the project develops new pretreatment technologies and optimizes the industrial chain to improve the quality of pyrolysis oil, promoting the economic viability of the plastic recycling industrial chain.

5. Catalytic Low-Temperature Efficiency for Advanced Decontamination (CLEAN)

Develop a new type of energy-saving catalyst to convert plastic waste (especially polyolefin films) into high-value raw materials more cleanly and efficiently. The project is building an innovative industrial chain from waste collection to chemical reuse, aiming to reduce the carbon footprint of chemical recycling.

6. Automotive and Electronic Equipment Plastics Recycling Project (RePLaCE: Recycling of Plastics from Cars and Electronic Equipment)

Committed to enhancing the quality and output of recycled plastics in automobiles and electronic devices. The project, in collaboration with partners, is developing new technologies for plastic identification, purification, and reutilization, with a focus on the removal of black plastics and harmful additives. Through laboratory and pilot-scale research, it aims to promote practical, economically viable solutions and predictive models, supporting a high-quality plastic recycling supply chain for the transportation and electronics industries.

7. High-value Carpet Recycling Project

The project aims to build a complete value chain for the collection, separation, and recycling of discarded carpets, transforming them into new high-value application products. In collaboration with partners, the project is advancing the development of pilot equipment to verify that polypropylene (PP), polyethylene terephthalate (PET), and polyamide (PA) fibers from carpets can be reused for spinning, marking a critical step towards the circular utilization of flooring materials.

8. RePliCa - Recycle Plastic in Cans

Focus on developing safe food-grade recycling technology for high-density polyethylene (HDPE) milk bottles and cans. The project and its partners are building a new demonstration plant in the city of Heerenveen to test innovative sorting technologies and purification processes, ensuring that recycled plastics meet food packaging requirements, laying an important foundation for achieving the 2030 goals of the Packaging and Packaging Waste Regulation (PPWR).

9. Research Project on Microplastic Issues in Plastic Recycling (Microplastics in Plastic Recycling, MiPlaR)

Focusing on measuring, reducing, and recovering microplastics generated during the plastic packaging recycling process. Through collaboration, the project is developing practical solutions and innovative filtration technologies and process improvement plans to prevent microplastic emissions.

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Industry Crisis: Severe Challenges Amidst the Wave of Bankruptcies Among Dutch Recyclers

Despite strong support from the government, the Dutch plastic recycling industry underwent a severe shake-up in 2024, with several companies once considered models of the circular economy going bankrupt due to market and cost pressures.

Typical Case Analysis:

Stiphout Plastics (bankrupt in December 2024): Struggled due to the impact of cheap imported products, which pressured prices.

Blue Cycle (bankrupt by the end of 2024): Faced health complaints due to chemical odors, encountering community resistance and financial pressure.

Ioniqa (bankrupt in October 2024): Its advanced PET depolymerization technology achieved positive cash flow cycle that was too long, making it economically unfeasible.

Umincorp (bankrupt in January 2024): Despite obtaining food-grade certification, the price of its recycled materials could not compete with cheap virgin plastics.

According to data from Plastics Recyclers Europe (PRE), the plastic recycling capacity in Europe is expected to decrease by nearly 1 million tons by the end of 2025. The capacity loss from January to July 2025 is expected to be equal to the entire year of 2024 and three times that of 2023, resulting in zero net growth for the industry this year. The Netherlands is one of the most affected countries.

The Dutch government's commitment to the plastic circular economy is undeniably resolute, as evidenced by initiatives like CPNL, which demonstrate its foresight in technology development and industry chain integration. However, the core issue in the current industry is not a lack of technology, but a lack of market competitiveness. Recycled plastics are unable to compete in price with cheap virgin plastics and imported recycled materials. Additionally, high energy and compliance costs make it difficult for many technologically advanced companies to achieve commercial operations.