CalRecycle to issue $47mn rPET grant

California's Department of Resources Recycling and Recovery (CalRecycle) has begun issuing $47mn in payments to PET reclaimers through June 2027, providing some relief amid a tough market.

The grant will provide recyclers and reclaimers $75/ton of A grade PET bales produced or used, and $50/ton of B grade PET.

CalRecycle said it will publish instructions in full on its website by 1 February for manufacturers and reclaimers who need to submit additional information in order to receive the payments.

In addition to assisting reclaimers directly, the Plastic Market Development (PMD) payments are intended to incentivize manufacturers to use more recycled PET in their products, and will provide grant money to companies who do so.

Manufacturers who exceed the recycled content mandate minimum of 15pc in manufacturing PET bottles will receive the maximum payment from CalRecycle of $150/ton. Manufacturers who meet the recycled content minimum and use it to make PET bottles will receive $75/ton, and manufacturers who do not make bottles will receive $50/ton.

However, some market participants expressed concerns that the grant will not be enough to keep some reclaimers in California's domestic recycled PET market afloat, as imported rPET material and virgin material are still providing stiff competition at lower prices.

By Zach Kluver