British Startups Impact Recycling Raises €3.8M For Its Water-Based Density Separation Tech

David Walsh, CEO of Impact Recycling, said: “This investment marks a significant milestone in our journey. With strong demand from global partners and our licensing model gaining traction, we’re well-positioned to scale our operations. We are thrilled to have IW Capital’s support as a partner as we develop the business and our market presence.”

This process separates mixed plastic waste into two high-purity output streams—polyethylene (PE) and polypropylene (PP)—each reportedly exceeding 95% purity.

What sets Impact Recycling apart in the mechanical recycling space is its ability to process both rigid and flexible plastics, a capability few others offer.

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The company operates two facilities in the UK—Glasgow and Peterlee—serving a growing number of clients across the healthcare, packaging, and waste management sectors.

The Glasgow site focuses on recycling medical plastic waste from the NHS, while the Peterlee plant was recently expanded to include a state-of-the-art system for recycling flexible film packaging, a known challenge for many recyclers.

In November 2023, Impact Recycling received a grant from Innovate UK and an €8.2 million loan from Nestlé to support facility development.

In January 2024, it signed a licence deal with Finnish circular economy firm Syklo to build and operate two 25,000-ton BOSS plants in Finland, expected to boost the country’s plastic recycling capacity by up to 50%.

The company also signed a licence agreement with LG Chem, a Korean chemical giant and shareholder.

Now, with a €3.8 million follow-on investment from IW Capital, Impact Recycling plans to scale further in both existing and new markets.

This comes at a time when the EU’s Plastic Packaging and Packaging Waste Directive is driving demand for recycled materials, requiring 35% recycled content in plastic packaging by 2030, increasing to 60% by 2040.

Commenting on the investment, Alan Armstrong, Chairman of IW Capital and Head of Investment, said: “Impact Recycling exemplifies the kind of business we’re proud to support – deeply innovative, commercially proven, and playing a critical role in the future of sustainable materials. Their proprietary BOSS technology and strong customer traction make them a standout opportunity in a market undergoing rapid regulatory and consumer-driven change.”

About Impact Recycling

Founded in 2014, Impact Recycling has developed and commercialized a patented water-based density separation technology called BOSS (Baffled Oscillation Separation System).