The facility, which will process pots, tubs and trays, will be powered by energy generated on site, creating a true circular economy energy park.
Parent company Pennon Chief Executive Officer Chris Loughlin said: “Pennon is dedicated to working in ever-more sustainable ways and we are extremely excited to be announcing this first-of-its-kind investment in plastics recycling.
“By using waste which cannot be recycled as the fuel to create low carbon electricity which will power plastics recycling we are creating a truly resource and energy-efficient waste management solution.”
“There is a clear ambition from both UK consumers and politicians to improve recycling rates and reduce the amount of waste which is sent to export. Our research shows that 80% of people believe the UK should find a way to deal with its own recycling without having to ship it to other countries.”
Viridor said recycled plastic uses 50% less electricity than virgin plastic and sourcing power from non-recyclable waste takes energy efficiency one step further and gives this material a real purpose.
Two-thirds of plastic collected for recycling in the UK is currently exported and 46% of plastic packaging is currently recycled against a target of 75%.