Plastic can be recycled into new products, but the quality of recycled plastic largely depends on how effectively it can be sorted, cleaned and processed. Danish SMEs and startups now have the opportunity to apply for funding to develop and test technologies that can improve plastic sorting and recycling.
Quality determines the value of plastic
Plastic is lightweight, durable and used in everything from packaging to technical products. Once these products reach the end of their useful life, however, the differences between materials become a challenge. Different types of plastic are mixed together, and materials become contaminated, limiting recycling opportunities and making the process more expensive.
As a result, valuable raw materials are often not fully utilised, as they end up being incinerated or can only be used in products with lower quality requirements.
It is therefore important not only to recycle more plastic, but also to preserve as much of the material’s value as possible. Clean, consistent material streams can be used in a wider range of products, including those with higher quality requirements. Sorting and recycling must therefore be developed as an integrated system, where the early stages help determine the quality of the resulting recycled material.
Where does Denmark stand on circular plastics?
The EU Circular Economy Action Plan covers the entire product life cycle. Clean therefore works with circular plastics across the value chain, including material selection, design, traceability, reuse, return systems, collection and recycling.
These efforts are interconnected, as products must be designed for use, collection and a new life once they reach the end of their initial purpose.
The new Packaging and Packaging Waste Regulation also introduces requirements for recycled content in plastic packaging from 2030. This increases the need for cleaner and more reliable material streams, as companies require recycled plastics with known properties and documented quality.
According to Circle Economy, Denmark has a circularity rate of just 4% when measured against total material consumption. Particularly when it comes to plastics, Denmark is falling behind its European neighbours. In 2022, approximately 23% of Danish plastic packaging waste was recycled, compared with 41% across the EU, according to Eurostat.
At the same time, Danish companies have strong capabilities in optical sorting, robotics and waste processing equipment.
Four key questions for better plastic sorting and recycling
There is therefore significant potential to improve both the quality and economic efficiency of plastic recycling by developing and optimising different processing stages, particularly with a focus on purity, efficiency, automation and traceability.
- How can we identify plastic types and products more accurately to ensure materials end up in the correct sorting fractions?
- How can robotics and automation make plastic handling and sorting more efficient?
- How can new processes clean, separate and recycle plastics to achieve the highest possible quality for each specific material stream?
- How can digital traceability ensure that information about a plastic material’s composition and use follows it through the sorting process and supports better recycling?
Funding for the development and testing of new technologies
Clean is now opening a new funding opportunity for Danish SMEs and startups working with sensors, automation, processing technologies and digital traceability that can improve plastic sorting and recycling.
Companies can receive funding to develop and test a specific technology in collaboration with a knowledge institution. This could involve a component, software, a module or a process that can be integrated into existing sorting or recycling facilities.
As much of the plastic collected in Denmark is processed abroad, the technologies should be capable of improving recycling processes regardless of whether the facility is located in Denmark or another country.
By testing a technology on a specific material stream, companies can document whether it delivers cleaner materials, higher recovery rates or lower resource consumption. This knowledge can help companies take the next step towards collaboration with recyclers, customers or other partners.
Does your company have an idea for improving plastic sorting or recycling?
Danish SMEs and startups can apply for up to DKK 200,000 in total funding for a development and testing project. Each project must involve at least one Danish SME and one approved knowledge institution. The application deadline is 1 December 2026.
The funding is provided through Knowledge Bridge Express, which enables SMEs to develop and test new water and environmental technologies in collaboration with a knowledge institution.
Do you have a project idea but need a knowledge partner or access to relevant materials? Contact Sean Coogan at +45 23 91 76 72 for guidance.
Learn more about the call and apply here:
Knowledge Bridge projects are co-funded by the Danish Board of Business Development and the European Union.
What is a Knowledge Bridge Express project?
Knowledge Bridge Express is a short, focused development programme designed to help SMEs address technical or scientific questions at an early stage of technology or product development. The aim is to provide rapid access to specialised expertise from knowledge institutions, enabling companies to test assumptions, collect data or carry out proof-of-concept activities before making further investments.
A Knowledge Bridge Express project always involves collaboration between at least one SME and one knowledge partner. Clean collaborates with 21 Danish knowledge institutions that provide analyses, laboratory testing, technical guidance and validation. Projects typically last 3–8 months and can receive up to DKK 200,000 in funding, shared between the company and its knowledge partner.
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About funding and Business Development Denmark
Under the Business Development Denmark brand (Virksomhedsudvikling Danmark), business development initiatives funded by the Danish Board of Business Development are brought together under one platform. The aim is to make it easier for Danish SMEs and entrepreneurs to find relevant programmes and opportunities to develop their businesses.
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