Interview: Japan’s esa Secures $7.6 Mln Funding for Composite Plastic Recycling
Japan-based recycling technology company Environmental Solutions Architect, also known as esa, has secured 1.15 billion yen ($7.6 million) to advance their plastics recycling business, chief executive officer Chikako Kurokawa told Dow Jones Energy on Thursday.
The funding comes from Mitsubishi UFJ Trust and Banking, Mitsubishi UFJ Capital, Environmental Energy Investment and SG Wonder Zone.
The company’s proprietary technology transforms multi-layered and composite plastics comprising polyethylene, polypropylene, polystyrene and polyethylene terephthalate into different variations of mixed plastic recycled pellets. The process enables plastic waste that has traditionally been difficult or uneconomical to recycle to be recovered and reused.
Products made with 50% comprising esa’s pellets were found to cut CO2 emissions by 38% as compared to products using fully virgin materials, according to esa’s estimates on their website.
While it runs its own dual-line material recovery facility in Yuki City, Japan, esa also licenses their technology to other manufacturers and recycling operators.
The new investment will be used to support the further commercialization and scaling of their proprietary recycling technology, research and development, as well as the expansion of applications for different types of hard-to-recycle plastic waste, particularly multi-layered and composite plastics.
“Beyond sustainability, plastic recycling is becoming increasingly important for resource security and supply chain resilience. Geopolitical tensions, including instability in the Middle East have highlighted the vulnerability of global petrochemical supply chains and the importance of diversifying raw material sources,” Kurokawa said.
Challenges Ahead
One of the biggest challenges for recyclers will be balancing environmental sustainability and economic competitiveness, esa’s CEO said.
“Recycled resins must compete with virgin materials in terms of cost, quality, consistency and supply reliability. This is particularly challenging for multi-layered and composite plastic waste, where conventional recycling methods often face technical and economic limitations,” Kurokawa explained.
Despite Japan’s strong industrial capabilities and technological expertise, regulatory incentives for recycled content have developed more slowly than in overseas markets, she noted.
In January 2026, Japan’s Ministry of Economy, Trade and Industry introduced a minimum 15% recycled content for PET bottles and design regulations that require plastic packaging to be easily separated and processed.
In April, the government also adopted the Circular Economy Action Plan, which included a 1 trillion yen injection, equivalent to approximately $6.3 billion, to help advance metals and plastics recycling through combined public and private funding.
“Stronger market demand and clearer incentives will be important for accelerating the transition toward circular materials,” Kurokawa told Dow Jones Energy.
As such, esa has also looked beyond the Japanese market, such as Vietnam.
“In several overseas markets, regulatory requirements and demand for recycled content are advancing faster than in Japan, creating opportunities for recycling technologies that deliver both environmental benefits and commercial competitiveness,” Kurokawa also said.
Looking to Launch Japan’s First Plastic Credits Project
Besides expanding their technology adoption and applications, esa is also progressing towards the development of Japan’s first plastic recycling credit issuance under Verra’s Plastic Waste Reduction Program, subject to completion of the remaining verification and issuance procedures, Kurokawa said.
“We see this as an important development for both esa and the broader Japanese recycling industry. Plastic credits can create additional financial incentives for recycling activities and improve the economic viability of recovering materials that have historically been difficult to recycle. This adds another dimension to our business model, alongside recycled resin sales, recycling and processing services and technology licensing.”
–Reporting by Carman Chew, carman.chew@dowjones.com; Editing by Mei-Hwen Wong,
mei-hwen.wong@dowjones.com