Fighting waste with innovation
Ten billion.1 That’s the number of disposable insulin pens produced each year, generating mountains of plastic waste that cannot be easily recycled. It is a small example of the global rubbish problem, but a telling one. If we are serious about protecting our environment, it is a problem that must be resolved.
NG Nordic, a leading recycling group in the Nordics, pioneered the only industrial process in the world capable of recovering materials from used medical pens (including for purposes such as fertility treatment, as well as insulin injections) to recycle them. In partnership with Novo Nordisk, for example, it is working with pharma companies to collect insulin pens and turn them into new plastic products, such as premium designer chairs. Each chair, manufactured by a local designer in Denmark, is composed of 120 used pens.2
The impact is amplified by involving industrial customers; this is something NG Nordic is doing in other areas too. The company – created through the merger of NG Group and Fortum Recycling & Waste – has patented its own treatment technologies for “forever chemicals” (PFAS) and sulphates. These can be operated on the premises of its industrial customers, removing PFAS from soil and water to recycle the materials, instead of the traditional method of simply storing contaminated mass.
Truly circular
For waste which cannot be avoided, the onus is on reducing the environmental impact. To this end, NG Nordic is installing a pilot carbon capture and utilisation project in Riihimäki, Finland. In true circular economy style, the plan is to capture the carbon generated during waste incineration, and to turn it into high quality biodegradable plastics with net zero potential.
Another project, in partnership with construction materials group Saint Gobain, collects, cleans and crushes waste glass from old buildings and cars to produce glass wool – a valuable material in the insulation of buildings. NG Nordic delivers 10,000 tons of crushed glass to Saint Gobain each year.
To generate the most out of every waste stream, NG Nordic has unique proprietary technology for managing incinerator bottom ash – or the residue from burning waste. Once processed, it can be used as a construction material. Meanwhile, the heat generated during high temperature incineration (HTI) is used to create thermal power, which then powers district heating.
With billions of tonnes of waste generated globally, there is strong demand for efficiency and for continuous innovation in recycling and disposal.
Investment insights
Pictet’s Environment Co-investment strategy is a co-investor in NG Nordic with Summa Equity. As private equity investors, we like companies with resilient business models, recurring and predictable cash flows, scale, diversification and great leadership.
But that, in itself, is not enough. Our strategy is focused on environmental solutions, so we want to find companies making a real, tangible contribution to solving environmental challenges today.
Even better if they're doing this through innovation because it gives them a chance to disrupt and gain market share.
NG Nordic fits both criteria, and we believe this is just the start. As a co-investor in NG Nordic, with our partner, we see many ways to accelerate, broaden and deepen NG Nordic's work.