Borealis Buys into Plastic’s Second Life

Borealis transfers its Ostend plant to BlueAlp, taking 10% stake to lock in recycled feedstock for EU targets

24 Feb 2026

In Europe’s plastics industry, waste is becoming a prized asset. As regulators demand more recycled content in packaging, access to suitable feedstock is turning from an environmental pledge into a strategic necessity.

Borealis, an Austrian chemicals group, has reshaped its position in that race. It has transferred its Renasci chemical recycling plant in Ostend, Belgium, to BlueAlp, a technology specialist. In return, Borealis has taken a 10% stake in BlueAlp, keeping a foothold in the business while ceding day to day control.

The Ostend facility can process around 20 kilotonnes of plastic waste a year. It focuses on hard to recycle material such as mixed films and flexible packaging. Through pyrolysis, this waste is converted into oil, which can then serve as feedstock for new plastics suitable for higher value uses. Such output is increasingly important under the EU’s Packaging and Packaging Waste Regulation, which requires rising levels of recycled content in plastic packaging by 2030.

The transaction reflects two calculations. The first concerns execution. Chemical recycling in Europe has been slowed by permitting delays, volatile energy prices and tight financing. By placing the plant under BlueAlp’s operational leadership, Borealis is betting that a more focused technology partner can improve performance and scale more quickly.

The second concerns security of supply. High quality recycled raw materials remain scarce. By retaining an equity stake, Borealis preserves strategic influence and, crucially, access to future volumes. In a market where brand owners are scrambling to meet sustainability targets, guaranteed supply may prove more valuable than outright ownership.

Advanced recycling is unlikely to replace mechanical methods, which remain cheaper and more established. But it is viewed as a necessary complement, especially for complex waste streams that cannot be mechanically processed. Questions persist over lifecycle emissions and the economics of expansion. Even so, policy support remains firm.

As compliance deadlines draw nearer, control over circular feedstock is becoming a competitive advantage. In Europe’s plastics industry, credibility now depends not just on pledges, but on securing the raw materials to meet them.