Through the JV, Greenstar and Vadxx will collaborate to provide a domestic fuel, and benefit the environment by repurposing recovered plastic products.
Using proprietary processes, Vadxx manufactures synthetic crude oil and natural gas by using raw material feedstock consisting of petroleum-based plastics in a process called thermal depolymerization.
The companies expect to begin producing crude oil in mid-2012 with the target location for the project in the US state of Ohio.
Greenstar CEO Matt Delnick said Vadxx will help the company recover plastics from the material stream and repurpose them as feedstock for the production of oil.
"This JV will help us better serve our municipal customers by providing a more consistent market value for their plastics that are otherwise largely unmarketable," Delnick said.
Vadxx CEO Jim Garrett said the Vadxx equity partnership with its feedstock suppliers is a key component of the company’s business model, which features a low capital investment compared to the expected return from oil sales.
Greenstar is a provider of sustainable recycling solutions in the recycle processing, commodity upgrading, managed services and commodity trading sectors of the solid waste market.
