Nexergy Holdings PLC is set to launch a pioneering technology incubator at the Materials Processing Institute (MPI) on Teesside, marking a key milestone in its drive to transform plastic waste into low-carbon fuels.

This strategic collaboration signals the start of Nexergy’s go-to-market phase, with MPI playing a vital role in refining the company’s proprietary technology and supporting industrial-scale trials as part of its wider circular plastics strategy.

By drawing on MPI’s expertise in materials science, process engineering and industrial development, Nexergy will accelerate the advancement of its thermo-mechanical process. This continuous process converts plastic waste into a form of light crude oil, which can then be refined into a commercially viable, sustainable alternative to fossil-derived petroleum.

The new incubator will provide a controlled environment for scaling up the technology, de-risking operations, optimising product quality and achieving operational readiness. It represents the first step in Nexergy’s ambitious plan to establish 16 production facilities across the UK, forming the backbone of its long-term vision for a circular plastics economy.

Jason Turner, Managing Director at Nexergy, said:

“The Materials Processing Institute offers technical expertise, cutting-edge facilities, and a shared commitment to sustainable innovation. Locating there means we will be able to move efficiently from proof-of-concept to commercial readiness, which is a critical step as we prepare for the rollout of our first full-scale production facility.”

Terry Walsh, CEO of MPI, added:

“MPI supports forward-thinking companies that are developing solutions for industrial sustainability. Nexergy’s approach aligns well with our own research priorities and with the region’s focus on green growth. Setting up at our site will mean that they have immediate access to our expertise and facilities to support this programme to develop its sustainable solutions capability.”

Bob James, MPI’s Business Development Manager, commented:

“We are delighted to welcome Nexergy to our site and to be working together on innovative opportunities to support materials recycling and re-use. This partnership reflects our broader vision to drive forward clean and green technology and industrial decarbonisation across all sectors.”

As the project progresses, Nexergy plans to work closely with local stakeholders, industry partners and policymakers to ensure it delivers tangible benefits to the regional economy while supporting the UK’s broader environmental goals.

The initiative further strengthens Teesside’s reputation as a national centre for industrial decarbonisation and advanced materials innovation, reinforcing its leadership role in the UK’s transition to net zero.