German start-up CleanHub lands €6.4M for digitalized plastic waste recovery tech

27 Jun 2023 --- Germany-based start-up CleanHub has raised €6.4 million (US$~7 million) for its plastic waste recovery technology, which uses QR code-based track and trace technology to aid businesses in recovering and sorting ocean-bound packaging trash. This can guard against greenwashing and earn businesses plastics credits.

The funding was led by Integra Partners, Lakestar and from new investors, Silence VC, 468 Capital and Übermorgen Ventures.

Speaking to Packaging Insights, CleanHub co-founder and CEO Joel Tasche explains that the company’s track and trace technology is complemented by an AI-based anomaly detection system for sorting collected plastic waste.  

“This combination allows us to deploy our technology on a large scale without compromising quality. The more data we obtain, the better the precision of our technology. Our system enables us to ensure compliant supply chains and does not add excessive cost,” he says. 

“I consider this technology as a cornerstone for any investment in preventing plastic pollution. The main reason being that it addresses and overcomes the fundamental trust issues that currently exist in the market.” 

CleanHub technology can detect anomolies in the waste supply chain.Unprecedented transparency? 
Tasche says he believes CleanHub’s technology has the potential to “completely revolutionize waste management.” 

“It facilitates accountability for all parties involved, including waste managers and brands,” he says. 

Innova Market Insights pegged “Green but clean” as a top packaging trend for this year, noting that consumers want sustainability, but they don’t want to be misled. 

The market researcher flagged that environmental claims like “carbon impact,” “reduced packaging,” and “plastic-free” on F&B packaging have almost doubled (92%) since 2018. 

However, the proliferation of sustainability messaging has created fears of unsubstantiated claims.

“Brands will be held accountable for the amount of plastic they introduce into the market. On the other hand, waste managers will need to ensure that plastic waste doesn’t end up being illegally exported or dumped into the nearest river,” says Tasche. 

“Our technology can not only improve the entire fulfillment process but also achieve this at scale without imposing significant costs, as it is technology-based. This, in essence, presents a new and transparent way for waste management.”

Development roadblocks 
Industry stakeholders can obtain proof of waste collection and recycling and avoid greenwashing claims.Tasche says that CleanHub has faced some major hurdles in achieving scalability. 

“We have previously presented our solutions to large organizations, and they raised four primary concerns - lack of infrastructure; in transparent systems; scalability issues and poor working conditions,” he says. 

The start-up has now addressed all these issues, he claims, but doing so required a significant amount of resources and initially required primarily collaborating with smaller companies. 

“These companies were not necessarily selling in these markets, but they were willing to take the leap of faith with us.” 

Now, CleanHub’s central challenge is to convince larger brands, particularly those that sell in the Global South, to contribute toward waste management. 

“The aim is to make them understand that paying for waste is not just an expense, but a long-term investment that protects their interests and forms the foundations of a circular economy.”

Spending plans 
With the new investment, the company plans three central spending plans: 

• Further refine and enhance the tracking and tracing technology and transform it into an operating system tailored for waste managers.
• Expanding its customer base with more substantial and far-reaching clients.
• Exploring the possibility of verifying and trading recycled raw materials. 

These goals require government support, says Tasche. “Putting a price on pollution is paramount. Particularly on non-recyclable raw materials. So, we’re working together equilaterally with policymakers.”

“The track and trace system we’re developing, along with the transparency it promotes, exists to enforce extended producer responsibility. At the same time, it eases the adoption for brands as they can clearly see the impact of their investments in curbing pollution.”

In terms of how policymakers can support the company, Tasche says, “We’re not merely a project. We’re an active solution.” 

“What would be truly beneficial is engaging in open dialogues with us, understanding our perspectives, and taking our approach seriously. It’s less about needing their aid; we believe we can aid them instead.”

By Louis Gore-Langton