Sustane Technologies has received a $950,000 funding package from the Atlantic Canada Opportunities Agency and used it to develop a system for converting plastic waste into naphtha — one of the constituents of gasoline and jet fuel, though the Chester, NS, company plans to sell it for use in manufacturing new plastics.

In a statement, ACOA indicated Sustane has already received at least some of the funds. Records obtained via the federal government’s open data portal show the agreement, which takes the form of a loan, began in March and is slated to continue until spring of next year.

The company can now produce 1,000 litres of fuel per tonne of plastic input, thanks to research and development work it conducted with the money. The process does not require combustion, unlike conventional naphtha production, which involves heating oil to about 120 degrees Celsius. 

Sustane itself began with technology developed by CTO Javier De La Fuente. He headed up the initial research in Spain to process landfill waste into biomass pellets with the help of steam. Then, in 2014, he launched the company in Nova Scotia with President Peter Vinall and CFO Robert Richardson.

“This is a pivotal time for Sustane, as we have made significant breakthroughs, including producing feedstock for circular plastic production,” said Vinall. “The support of ACOA will enable us to focus more resources to scale this effort as we continue to forge important global partnerships.”

Sustane opened its 40,000 square-foot Chester manufacturing plant in 2019. Other than the naphtha fuel, the company also manufactures biomass pellets, synthetic diesel and an organic fertilizer for which it received Canadian Food Inspection Agency approval in September.