SEATTLE (Recycling Monster): Brookfield Renewable Partners LP announced that it has entered into an agreement with Closed Loop Partners LLC towards establishment of a company named Circular Services. Five of the Closed Loop’s portfolio companies have merged together to form the new entity, which will recycle a variety of materials including paper, metal, glass, plastics and textiles across seven U.S. states.

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According to sources, Brookfield Asset Management Inc. has invested $200 million in acquiring minority stake in the entity. In addition, it has also offered investment of $500 million to support future growth of the company. The investment has been made through the Brookfield Global Transition Fund.

Natalie Adomait, chief investment officer of the transition fund highlighted the need to step up investments in recycling infrastructure in the country. The U.S. recycles only around 20-30% of the waste, in comparison with Europe which has a waste recycling rate of approximately 50%.

Circular Services will have an initial processing capacity of over 1 million tons per annum, which will be expanded to up to 5 million tons per annum over a period of five years, noted Ron Gonen, Chief Executive Officer, Closed Loop Partners.