Pryme (PRYME) Pareto Securities' 31st annual Energy Conference Presentation summary

Business overview

• Pryme is pioneering large-scale conversion of plastic waste into circular products, focusing on advanced chemical recycling to address hard-to-recycle plastics and reduce emissions from incineration.

• The company integrates with existing waste systems, ensuring reliable feedstock supply and collaborating with over eight waste suppliers to optimize input blends.

• Pryme's technology processes up to 40,000 tons of plastic waste per reactor annually, with a high-capacity, electrically heated reactor achieving superior core temperatures and quality consistency.

• The company has secured three sales contracts for its plastic pyrolysis oil (PPO) with major downstream players, supported by strong EU regulatory trends mandating recyclable packaging by 2030.

• Backed by significant shareholders, Pryme is positioned as Europe's largest advanced chemical recycling plant, with a clear growth strategy and attractive off-take agreements.

Operational progress and technology

• Pryme One, the first commercial plant, has processed over 250 metric tons of plastic waste into more than 170 metric tons of PPO in 2024, achieving production rates up to 2.7 tons/hour.

• Production optimization has been prioritized over volume, with nearly 20 production runs using varied feedstock qualities to refine processes and reliability.

• The plant currently operates with one extruder, with the second scheduled to start in September 2024, aiming to reach the 5 tons/hour nameplate capacity.

• Pryme's reactor delivers up to seven times the capacity of competitor reactors, with improved temperature control and a dry, odorless ash residue indicating complete reaction.

• The company’s process yields high-quality PPO, and the technology is designed for scalability and integration into future plants.

Financials and growth outlook

• At nameplate capacity, Pryme One is expected to produce 30,000 MT of PPO annually with an EBITDA of €16.5 million and a 41% ROI; Pryme Two targets 90,000 MT and €59.4 million EBITDA with a 54% ROI.

• Current market prices and signed supply agreements support attractive plant economics, with energy and feedstock costs well defined.

• Pryme’s rollout plan includes up to three new plants, with feasibility studies and permitting underway; next plant production is targeted for 2027, contingent on funding and approvals.

• The company’s growth is underpinned by increasing demand for circular plastics, regulatory support, and a scalable, flexible technology platform.

• Pryme expects to deliver above-average returns through large-scale, purpose-developed technology and a committed team of industry veterans.