UBQ Materials, a plastic waste disruptor, gets Series D from TPG Rise

This week, Tel Aviv’s UBQ Materials, an advanced materials startup that has developed a sustainably sourced alternative to traditional oil-based plastics, announced that it has received $170 million in Series D venture capital. The round was led by The Rise Fund, the $12 billion impact investing platform of global alternative investments giant TPG, and other investors. Additional terms of the transaction were not disclosed.

UBQ Materials has developed and patented a conversion process that turns municipal solid waste (MSW) otherwise bound for landfills (including all organic waste) into into UBQ thermoplastic, a low-cost, low-carbon, recyclable plastic substitute that can also be used as an alternative to wood or concrete. According to the company, UBQ can be used on its own, as well as in conjunction with conventional oil-based resins to offset the overall carbon footprint of end-products in industries including construction, automotive, logistics, retail, and 3D printing.

“In addition to converting municipal waste into functional thermal plastics, UBQ’s material solution is energy efficient, uses no water and produces no effluents,” said Steve Ellis, Co-Managing Partner of The Rise Funds, which led the round. “UBQ can be utilized in a broad array of industrial and consumer applications. We’re excited to be partnering with management to scale the business globally.”

The investment will fund UBQ’s global expansion to meet growing demand, beginning with a large-scale facility in the Netherlands to be operational by the end of 2022. Funds from the round will also go into UBQ’s continued research to advance certifications, research and development of new products.

“As countries and industries converged in Glasgow at COP26, negotiating the urgent benchmarks we must hit in lowering Greenhouse Gas (GHG) emissions, this investment could not come at a more apt time,” said UBQ Materials Chairman and Co-CEO Albert Douer. “Through the prevention of landfill-related methane emissions and the replacement of carbon intensive raw materials, UBQ can support governments, brands and major manufacturers in achieving their sustainable development goals.”

According to data obtained from UBQ Materials, over 2 billion tons of municipal solid waste are currently produced each year around the world, more than 70 percent of which end up in landfills or is openly dumped. Landfills are the third largest human source of methane, a GHG 80 times more powerful than carbon dioxide over 20 years. For every ton of UBQ™ produced, the solution can prevent as much as 12 tons of CO₂ equivalent from entering the environment.

“Waste is not the end, it is only the beginning,” said Jack (Tato) Bigio, Co-Founder and Co-CEO of UBQ Materials. “This financing round enables us to widen the reach of our patented conversion technology and novel material, bringing us closer to a functioning circular economy worldwide.”

Last month, UBQ Materials announced a partnership with thermoplastic compounds maker Polyram Group to incorporate low-carbon UBQ into its advanced materials applications for the automotive industry.