Loop Industries Picks BASF Park for 70,000 tpa European Recycling Facility
Loop's Infinite Loop Europe joint venture selected BASF Industriepark Lausitz in Schwarzheide, Germany for its first European facility, set to produce 70,000 metric tons of recycled PET annually. Under the capital-light model, Loop received a €10 million upfront license payment and will generate engineering and license revenue starting in 2026.
1. Facility Site Selection
Infinite Loop Europe selected BASF Industriepark Lausitz in Schwarzheide, Germany as the site for its first European manufacturing facility, marking the joint venture's second global Infinite Loop™ plant.
2. Licensing Model and Financials
The project operates under Loop's capital-light licensing model, with an initial €10 million upfront license payment received in December 2024 and anticipated incremental engineering fees and license revenues beginning in 2026.
3. Production Capacity and Timeline
The Schwarzheide facility is designed to produce 70,000 metric tons per annum of virgin-quality recycled PET and polyester fiber, with engineering and permitting phases underway and commercial operations targeted by 2030.
4. Strategic Partnerships and Sustainability Impact
Integration within BASF's Industriepark Lausitz and partnership with Reed - Société Générale Group provide industrial infrastructure and institutional capital support, reducing execution risk while advancing EU recycling goals and cutting up to five tons of CO2 emissions per ton of PET compared to fossil alternatives.