Secures NOK 150 million loan to turn plastic waste into oil

We have granted IDP Mongstad a NOK 150 million loan. The funding will help finance a commercial pilot plant for recycling plastic waste. Instead of being incinerated as it is today, the plastic will be converted into high-quality oil.
En stor haug med hvit plast. Plasten har blitt brukt til rundballer i landbruket.
Silage wrap, ropes, flexible plastics and rigid plastics that currently have to be incinerated will instead be turned into circular oil.
© .

A successful project will make it possible to recycle low-value plastic through pyrolysis, a process in which substances are broken down at high temperatures without oxygen. The resulting oil can then be used to make new plastic products with significantly lower CO₂ emissions than conventional plastic production.

The project partners have invested a total of around NOK 700 million in developing and scaling up purification and pyrolysis technology. The project stands out from similar initiatives because the company and its owners control the entire value chain, from collecting plastic to producing a marketable product.

'This is how plastic can be turned back into raw material. If the company succeeds, it will offer a real solution to the plastic problem. The project has strong growth potential,' says Håkon Haugli, our CEO.

Major oil companies want greater access to pyrolysis oil. IDP Mongstad has already signed a contract with a large multinational oil company that has committed to buying the product.

Private co-financing

Our loan mobilises an equivalent amount of private capital, in this case from the founders and external investors. IDP Mongstad AS is a collaboration between Inframar AS, Pointbreak AS and Deeptech Recycling LTD (DTR). The company is based in Alver municipality in Vestland.

'We have built a project that combines proven technology, industrial partnerships and a value chain designed for profitable growth. The entire value chain has been tested and scaled up in several stages. Together with leading research institutions and industry partners – and with a loan from us – we have established a robust foundation for commercial scale-up,' says Aron Uhre, Chair of the Board at IDP Mongstad.

IDP Mongstad's facility will handle plastic waste that currently has no value. In other words, the plastic is too 'contaminated' for conventional recycling and must be incinerated. The facility will wash, pre-treat and process this plastic.

We offer loans for major industrial projects through the 'Green Industrial Financing' scheme. The aim is to support the establishment and scaling of green value chains while mobilising significant private capital. The loan to IDP Mongstad is the fourth commitment under the scheme. The project shows how the scheme helps bring major, capital-intensive initiatives to life that might otherwise struggle to secure commercial financing at an early stage.

‘We are seeing strong interest from industry in risk mitigation for transition projects. Demand from eligible projects far exceeds the funding available to us,’ says Haugli.

Facts about the Green Industrial Financing loan scheme

  • Funding framework: NOK 5 billion, with a loss provision of NOK 1.75 billion allocated in the Revised National Budget for 2024.
  • Purpose: Mobilise private capital and secure funding for projects that strengthen our industrial competitiveness.
  • Target group: Innovative industrial projects in the growth and scale-up phase.
  • Project portfolio: We work with a wide range of relevant projects in the process industries, hydrogen, forestry and the bioeconomy, carbon capture and storage, offshore wind, batteries, the solar industry and green shipping.
  • Capital requirements: Many projects require several hundred million Norwegian kroner. Private co-financing is required for all projects.
  • The government's role: The scheme provides loans, not grants, and generates significant revenue for the government through interest and fees.
Published 14 Nov 2025Last updated 14 Nov 2025
This page is translated with the assistance of AI