Trader and shipowner Vitol has agreed to take a stake in its sustainable bunker producing partner Quantafuel in a debt-swap.
Quantafuel said that its outstanding debt owed to Vitol of $3.25m, including accrued interest, will be converted into new equity.
After the conversion Vitol will own 301,375 shares, representing 2.9% of the company. The deal was based on a subscription price of NOK 98 ($10.57) per share.
Last year, Quantafuel teamed up with Vitol to produce fuel made from recycled plastic.
Vitol provided financing to the Norwegian company to turn out the synthetic low-carbon diesel.
It will also be the sole marketer of the product.
Quantafuel processes plastic waste into diesel using its own technology.
Vitol said only 12% to 14% of Europe’s 25m tonnes of plastic waste is recycled each year.
The majority goes to landfills or incineration, and about 500,000 tonnes ends up in the oceans.
Quantafuel has been building its first commercial plant in Denmark, which is expected to start operations in the fourth quarter.
More plants planned
A second will be constructed in Norway in 2019.
They will turn 120 tonnes of waste into 80 tonnes of fuel per day.
These volumes are expected to double within the first 24 months of operation.
Plans for additional European plants are underway, including a 300 to 500-tonne-per-day waste plastic facility at a key logistic point for fuel handling in Europe, in partnership with Vitol.
