Eureka Recycling, a nonprofit, mission-based independent regional materials recovery facility (MRF) based in Minneapolis, MN, announced a multi-million-dollar financing round led by Closed Loop Partners鈥� catalytic private credit arm, the Closed Loop Infrastructure Group, alongside American Beverage and The Recycling Partnership.
鈥淭his loan funds key upgrades that bolster our resilience to changes in the recycling material stream and shifts in policy across the U.S.,鈥� said Miriam Holsinger, co-president and COO of Eureka Recycling. 鈥淏uilding on our long-term commitment to quality material, traceability in markets and support for our local community, this new equipment and technology improves our ability to effectively sort recyclables in Minnesota and also prevents environmental deterioration from resource extraction, reduces landfill disposal, and generates economic benefits across the municipalities that we support.鈥�
Since its founding, Eureka has been a best-in-class recycling operator, demonstrating the impact and importance of regional, independent recovery facilities in keeping materials in circulation. Eureka Recycling has maintained strong local support in the Minneapolis-St. Paul area and continues to be a key player in the regional recycling market, processing more than 100,000 tons of materials per year.
The over $10 million loan from Closed Loop Partners鈥� catalytic capital group includes $3 million from American Beverage and the Minnesota Beverage Association. Alongside the loan, The Recycling Partnership provided a grant to support this project. With key infrastructure upgrades, Eureka Recycling can collect, process and return more valuable materials to supply chains and advance a circular economy in the greater Minneapolis-St. Paul area. This will not only support a cleaner community, but also continue to bring revenue to cities and other customers served by the facility and support local jobs.
鈥淲e see immense opportunity to support independent recycling operators that are building the necessary infrastructure for a circular economy in the U.S.,鈥� said Jennifer Louie, Managing Director and Head of the Closed Loop Infrastructure Group at Closed Loop Partners. 鈥淓ureka鈥檚 work has consistently aligned with Closed Loop Partners鈥� broader mission to advance the circular economy since our partnership began with them nearly a decade ago. This is Closed Loop Partners鈥� fourth loan to Eureka Recycling in nearly a decade, supporting the MRF in maintaining its leading position in the region. Closed Loop Partners鈥� Infrastructure Group, across its聽Infrastructure,聽Beverage,聽Circular Plastics聽and聽Local Recycling聽strategies, will continue to deploy capital into private companies, projects and other recycling-focused nonprofits, such as Eureka Recycling.鈥�
Financing is provided as market dynamics, policy shifts and packaging trends change the composition of materials processed by recycling facilities. Investment in regional recycling infrastructure is necessary to keep up with changing material flows and growing demand for high-quality recycled material. The capital will support additional optical sorters to decrease contamination and increase the quality of recovered materials that can be made into new materials, including mixed paper and old corrugated cardboard, polyethylene terephthalate (PET), aluminum, polyethylene and polypropylene. Once the upgrade is completed in 2025, the new machines are estimated to increase the annual collection of PET and aluminum by 222 and 248 tons, respectively.
鈥淥ne of our industry鈥檚 highest priorities is circularity for our valuable bottles and cans,鈥� said American Beverage President and CEO Kevin Keane. 鈥淭hey are made to be remade, and this investment will help make sure more of this valuable material can once again become a new bottle or can. America鈥檚 beverage companies are excited to support these important upgrades for the one million residents Eureka serves.鈥�
鈥淒elivering on the promise of a circular economy requires that we build a better recycling system, and that鈥檚聽exactly what our support to Eureka Recycling is delivering,鈥� said聽Cody Marshall, Chief Community Strategy Officer at聽The Recycling Partnership. 鈥淏y delivering grant funding聽and forging new partnerships we are providing critical infrastructure that will increase Minnesota鈥檚 45% recycling rate and expand recycling access across the region. That鈥檚聽good for the people of Minneapolis-St. Paul聽and for all of us.鈥�