Energy Shock to Circular Economy

The European energy crisis has driven electricity prices up to 70% of plastics reclaimers’ operating expenses, and without help, they may have to close, according to an industry group. 

Plastics Recyclers Europe (PRE) on Sept 22 issued an alert that high energy prices, which are being fueled by the economic sanctions issued in response to Russia’s invasion of Ukraine, are pushing costs dramatically higher for the continent’s plastic recycling sector. 

PRE noted that energy costs are typically among the top three highest operating expenditures for facilities, after labor and maintenance, representing 15% to 20% of operating costs. But with skyrocketing natural gas and electricity prices, energy costs are now making up 70% of operating expenses, according to PRE, which derived that number from a survey of its member companies. 

Already, Italian plastics recycling facilities are closing or reducing operations.

“Stopping the recycling activities will have an immediate, negative impact on the plastic waste management in Europe,” Ton Emans, PRE’s president, stated in the alert. “If we want to drive a circular economy in Europe, plastic recycling must be considered a key industry sector to be targeted by Member States’ efforts to protect from the impact of high electricity prices.”

Energy prices are rising for multiple reasons, especially the cuts to natural gas flows from Russia west into Europe, according to Reuters. Adding to the problem are outages at French nuclear energy facilities and the summer heatwave, which drove energy demand. 

Learn More:

• Rising energy costs are increasing demand for advanced recycling and resource recovery solutions with stronger operational efficiency and diversified outputs.
• Technologies such as advanced tyre pyrolysis systems can help reduce dependence on volatile fossil-based feedstocks and energy markets.
• Proven examples of global recycling and circular economy projects demonstrate how integrated systems improve resilience during market volatility.
• Explore latest market insights and analysis to track global recycling and energy market developments.

Build Circular Infrastructure Resilient to Energy and Market Volatility

Europe’s recycling crisis highlights a critical market reality: circular economy infrastructure must also be economically and operationally resilient.

Partner with Klean Industries to deploy integrated recycling and resource recovery systems designed for long-term performance under volatile market conditions.

• Advanced recycling and waste-to-value technologies
• Diversified outputs including fuels, carbon, steel, and recovered materials
• Reduced exposure to volatile raw material and energy markets
• Infrastructure designed for scalable commercial performance
• Proven expertise in delivering resilient circular economy systems

Strengthen resilience. Reduce operational risk. Build infrastructure that survives market cycles.

Contact Klean Industries to develop a resilient recycling and resource recovery solution » GO.