By Jaime Llinares Taboada

Royal Dutch Shell PLC said Thursday that it has taken a 21.25% stake in BlueAlp Holding BV as part of a partnership with the Dutch plastic waste-to-chemicals technology company.

The Anglo-Dutch energy giant said BlueAlp's technology transforms tough-to-recycle plastic waste into a feedstock that can be used to make sustainable chemicals.

As part of the deal, Shell and BlueAlp will build two conversion units in the Netherlands. They are forecast to convert more than 30,000 metric tons of plastic waste a year when operational in 2023, and will supply the resulting feedstock to Shell's Moerdijk and Rhineland crackers.

In addition, Shell is exploring the deployment of two further conversion units in Asia to supply its chemicals facilities in Singapore.

"The investment will help deliver Shell's ambition to recycle 1 million tons of plastic waste a year in its global chemicals plants by 2025," the company said.

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

(END) Dow Jones Newswires

09-09-21 0700ET