Thank you for standing by. Welcome to PureCycle Technologies Growth Capital Raise Corporate Update Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. Please note that today's conference is being recorded. I will now hand the conference over to your speaker for today, Eric DeNatale, the Director of Investor Relations. Please go ahead.
Thank you, Livia. Welcome to PureCycle Technologies Growth Capital Raise Corporate Update Conference Call. I'm Eric DeNatale, Director of Investor Relations for PureCycle, and joining me on the call today are Dustin Olson, our Chief Executive Officer, and Jaime Vasquez, our Chief Financial Officer. This morning, we will be highlighting our growth plans to 1 billion lbs of installed capacity following our $300 million capital raise. The presentation we'll be going through on this call can also be found on the Investor tab at our website at purecycle.com. Many of the statements made today will be forward-looking and based on management's beliefs and assumptions and information currently available to management at this time.
The statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control, including those set forth in our safe harbor provisions and forward-looking statements that can be found at the end of today's press release filed this morning, as well as our other reports on file with the SEC that provide further detail about the risks related to our business. Additionally, please note that the company's actual results may differ materially from those anticipated, and except as required by law, we undertake no obligation to update any of the forward-looking statements. Our remarks today may also include preliminary non-GAAP estimates and are subject to risks and uncertainties, including, among other things, changes in connection with quarter-end and year-end adjustments. Any variation between PureCycle's actual results and the preliminary financial data set forth year-end may be material.
You're welcome to follow along with our slide deck, or if joining us by phone, you can access it at any time at purecycle.com. We are excited to share our growth plans and recent capital raise with you. With that, I will turn it over to Dustin Olson, PureCycle's Chief Executive Officer.
Thank you, Eric, and thank you, everyone, for joining us. I know this call was just recently scheduled, so I appreciate the last-minute time commitment by all of you. I'm incredibly excited to lay out our growth plans for the future. There have been a lot of effort over the last few years to get us to this stage, and with this funding round, we can now begin our growth plan to a billion pounds of installed capacity that should generate approximately $600 million of EBITDA by the end of 2030. I'm happy to announce today that we have secured a $300 million investment from an extremely high-quality group of new and existing investors. This is a transformative moment for the history of PureCycle as it helps us facilitate and fund our stage one growth plan.
From there, it is our belief that the projected cash flow of the business should be sufficient to fund future growth beyond 1 billion lbs. There has been a lot of preparation behind the scenes to develop, prepare, and permit the sites around the world, optimize our plant design, and structure a growth plan that we believe is the lowest risk, highest return, and fastest to market. I think it's important to detail why the time for expansion is now. First, Ironton has continued to make significant operational progress and is gaining momentum. Reliability continues to improve with on-stream times both in April and May approaching 90%. Production is becoming more steady as we produce pellets for 65 consecutive days prior to a now-completed small planned outage at the beginning of June. We continue to have strong confidence in our ability to hit nameplate.
Second, our commercial progress is also building momentum. Our sales progress is being seen across the board with more trial activity, trial progression, trial completion, and customers signing on for commercial orders. We have received strong endorsements from key customers like Drake for fiber, Churchill for injection molded applications, and Bruckner for film. Customer trials are going well, and many are designing us into their commercial applications, which is increasing our visibility and moving us to a point where we believe we will need more capacity. We are excited to be sharing more announcements with the market in the coming weeks. The pricing and unit margins are also robust, and it makes us believe that the economic returns on expansion will be very attractive. We also believe that this announcement and certainty of growth will also facilitate discussions with strong global brand owners.
No one else in the world can do what we do with recycled feed. To date, no one has reliably produced polypropylene film and fiber from post-consumer waste. These markets represent 30%-40% of the global PP market, and we are the only meaningful producer of recycled content that can act as a drop-in replacement for virgin polypropylene. We can deliver exceptional product quality across both FDA and non-FDA feedstocks and give brands the product quality confidence that they need when facing the customer. We believe our technological lead has grown over the last five years. We are commercialized. We are at scale, and we have a world-class R&D facility in Durham, North Carolina. Third, regulatory tailwinds are increasing on a global basis.
In particular, the automotive regulations in Europe and Japan come into effect around the end of the decade, and having a global footprint by that time should provide automotive producers unparalleled sourcing confidence. We are having conversations with numerous automotive customers around the sourcing material amounts for future demand, including potentially contracting entire lines. Extended producer responsibility, or EPR, and minimum recycled content laws like packaging and packaging waste regulation, or PPWR in Europe, and other statewide mandates in the U.S. are driving significant demand for high-quality recycled material. In fact, the regulatory changes in New Jersey are already driving significant interest in Ironton product today. Lastly, combining the learnings from Ironton with the benefits of scale, we believe there is a clear path to driving our CapEx cost to be competitive with virgin producers.
With the potential for CapEx equivalency and good and improving OpEx advantages, we believe PureCycle will be the expansion of choice for future PP demand. The combination of ongoing positive customer trials and attractive cost structure at scale and regulatory windows opening in the next five years, we believe the enormous addressable market ahead of us is there for the taking. We aim to be the first global recycling company that can serve global brands with high-quality product consistently, regardless of location or feedstock. Even with this large 1 billion lbs growth plan we are announcing today, we will only be one half of 1% of the entire global market by 2030. This model sets the stage for continued and accelerated growth beyond. The time to move is now.
The team has been hard at work identifying and progressing our global footprint expansion, and I'm excited to share details with investors. The plan adds a significant amount of capacity, addresses the need for global customer consumer base, and drives the best operational CapEx efficiency. The team has been working hard to progress these projects, and we are confident in our ability to deliver them. Overall, we plan to bring 1 billion lbs of global production online by the end of 2029. This is across three different new facilities globally with locations in Asia, Europe, and North America. This global footprint allows us to source feedstock, distribute product, and meet our customers across their growing sustainability needs. This also enables us to lock down the P&G exclusivity in these different regions and further solidify ourselves as the dominant provider of high-quality recycled material.
As we have iterated on our plans internally, there have been some modifications to our earlier plans. The most notable is that we're going to be relocating the first 230 million lbs lines that we had originally earmarked for Augusta. These lines are now going to be used for our plants in Thailand and Antwerp. The decision to move these lines was fairly obvious. Both locations in Europe and Asia have existing infrastructure which offers significantly cheaper CapEx per pound while also enabling us to bring the lines on faster. For Augusta, we're going to focus on finalizing the engineering work we've already been working on for our Gen 2 lines, which are going to be 300 million lbs plus per year. The work in Thailand has been underway for over a year, and recent developments have unlocked this project.
In fact, I just came back from a week in Thailand where the gating items were completed. This is an incredibly exciting project that is well thought out, and our team, both in the U.S. and Thailand, can't wait to get going. We have signed an agreement with IRPC to use their Rayong, Thailand complex for our purification line. IRPC is a subsidiary of PTT, the large Thai conglomerate, and is currently operating a virgin PP facility with approximately 1.7 billion lbs of annual capacity. By co-locating with IRPC in Thailand, this materially reduces the CapEx required, as we will not need to build prep and compounding assets. Other large greenfield expenditures like utilities, steam, and logistics are already in place. The site is fully integrated with IRPC's existing virgin PP and compounding assets, which also lowers our operating costs and gives us access to numerous compounding options.
There are large amounts of cheap feedstock available in both Thailand and the broader Southeast Asia region. We believe that there will be opportunities to increase margins by exporting our finished product to key markets. While I was in Thailand last week, I met with key leadership at IRPC to discuss integration plans. I also met with officials from the Thai government to initiate the paperwork for our tax incentive plans and numerous financial institutions regarding project financing. We expect this production line to become operational in mid-2027, and we expect to layer a project financing facility on this project in the first half of 2026. Our decision to move the other 130 million lbs line to Antwerp also further reduces CapEx as we have access to infrastructure facilities inside of the industrial complex.
The more mature feedstock ecosystem in Europe allows us to enter the market without spending capital on prep. There is a well-developed compounding capacity network in the region, so we will not need to spend additional capital there either. However, we will continue to look at prep and compounding integrations opportunistically. Overall, Antwerp is a low-risk expansion opportunity which positions us well in Europe and their increasing regulatory tailwinds that should benefit PureCycle. We plan to receive final permits in the first half of 2026 and expect to have this line operational in the first half of 2028. Given the amount of greenfield costs associated with building Augusta, we believe it makes more sense to put our first Gen 2 facility or 300 million plus lbs line there.
The large line size will allow for more cost absorption of the initial greenfield cost, and I believe that even including those, we can still drive CapEx per pound below $2. We plan on fully integrating both prep and compounding into Augusta, which is consistent with our approach at Ironton. The Augusta Economic Development Area has also welcomed additional participants to the site, which we will evaluate the feasibility to find utility synergies between our sites and potentially lower overall CapEx even further. The large line size and vertical integration should lead to operating costs approximately 50% below that of Ironton and unit economics that are more than 30% higher than Ironton.
Currently, we expect Augusta prep online in the second half of 2026 and Augusta purification to begin construction in mid-2026 after the completion of the final engineering work, with the first Gen 2 line to be completed in 2029. We also plan on adding a second 300 million lbs line, which could go into any of the three locations with a current marginal bias toward Thailand. The decision will center around cost, margin, feedstock development, and overall supply chain evaluations. We believe that CapEx per pound should be below $2 for the screenfield Gen 2 facility with incredibly attractive unit economics. Currently, we expect this line to be completed in Q4 2029. We believe this growth plan is tangible, achievable, and transformative. It presents lower risk and higher returns for us to approach a billion pounds of installed capacity by the end of 2029.
We have learned a tremendous amount from our experiences of scaling and ramping Ironton, building out feedstock infrastructure, developing commercial relationships, and qualifying numerous customer applications. All of this knowledge feeds into our detailed and nuanced planning for the future and how we are approaching the growth plan in front of us. Going from a feedstock evaluation unit that produced roughly 3 lbs- 10 lbs per hour to our first commercial line at Ironton with a max feed rate of greater than 14,000 lbs per hour was a really difficult engineering, operational, and commercial challenge. We have succeeded, and now we get to reap the benefits of that. The total CapEx for this expansion to a billion pounds of capacity should cost us roughly $2 billion.
We believe the capital we have raised, along with the other capital sources, should allow us to fund that entire plan with over $300 million in excess financing resources. This starts with a $300 million raise that we announced today. We also have $200 million of equipment that we've already purchased. This includes $87 million for each of the 130 million lb lines, with the remainder of prep equipment earmarked for Augusta. We expect to sell the remainder of the SOPA Revenue Bonds as needed. We are seeing increased interest and expect to sell these bonds or potentially engage in a full recapitalization of the security. We also have 31.9 million warrants outstanding, of which 23.8 million expire in March of 2026, which we believe will exercise for $300 million of incremental capital. During 2026, we plan on raising project financing for Thailand, Antwerp, and Augusta.
We expect the financing for the Gen 2 line to occur in 2027. Given the low capital costs of Thailand, combined with the long lead equipment already purchased, and the timing of Antwerp construction costs, we believe that we have a good deal of flexibility in terms of when we raise the project financing. We are currently underway in the process. At this point, we are targeting Thailand to be complete by late Q1 2026. For all of these projects, we are currently assuming a 35%-65% equity-to-debt split, but may ultimately require less equity given the potential economic profile of these assets. Finally, we see roughly $300 million from operating cash from today through the end of 2029 when Gen 2 is complete.
This should provide an excess cash cushion for our capital needs and could be used to finance future growth beyond the 1 billion lbs we are currently planning. The key point here is that the low-cost nature of the Thailand project allows us to get going on growth today and backfill the project finance at a later date, which then funds the later year's growth. Thailand is more than fully funded with this pipe alone. We are extremely excited to get the growth plan underway. The $300 million capital raise we are announcing today is structured as a perpetual convertible preferred. It carries a 7% interest rate and can be paid in kind or in cash at the company's discretion, and a conversion premium of 30% to a 10-day VWAP as of yesterday's closing price.
The buyer group here is a very high quality and consists of many of our largest core holders, as well as some new investors that we are excited to bring in. These investors are also not the traditional convertible buyers and are heavily tilted to long-biased firms that share our excitement about the future PureCycle. We're incredibly excited by the deal, and we are able to structure and thankful for the support of our investors. I would like to conclude with a few key points. First, our technology works, and we know how to scale it at an incredibly reliable, efficient, and cost-effective manner. Second, our product meets the customer's needs, and the demand for our products materially exceeds our ability to currently supply it.
Third, we believe that we can drive our capital costs lower and drive our operating costs below those of virgin polypropylene production. Finally, we believe this plan will result in run rate EBITDA in excess of $600 million after these projects are completed. We will only have penetrated less than 0.5% of the total global polypropylene market, which is now growing at roughly 7 billion lbs of demand every year. PureCycle is now poised to be the recycling solution the world has been looking for, and this solution is the technology of choice for global brands trying to close the gap on their sustainability commitments. I've never been more excited about the future of PureCycle, and I speak for the entire team when I say we are energized and ready to go. With that, I will open it up for questions.
Thank you.
As a reminder to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. Please stand by while we compile the candidate roster. Our first question coming from the lineup, Hassan Ahmed with Alembic Global Advisors. He'll let us know when.
Morning, Dustin. You know, I have to say, clearly, you and Team PCT have been working extremely hard. Really appreciate the disclosure you guys have given. Two-part question, right? First, basically, as I sort of go over the presentation and all the disclosure you guys have given, I mean, it seems all the financials that you guys had been talking about up till now, call it 60%-ish EBITDA margins, CapEx efficiencies, a billion pounds of production by end 2029, early 2030, it seems that all of those have been reiterated, right?
Along the way, you guys are gaining more and more confidence around those disclosures. Part one of the question is, is that correct? Part two is, as you're evolving into this next growth phase, going back to me congratulating you on all the hard work, obviously, it's becoming a different beast altogether, right? How are you guys now, as global as you will get, thinking about your staffing needs? As you do, because obviously, it's a hugely evolving company now, as you do, I mean, I'm sure you guys already are actively sort of recruiting and the like. As you do that, are you continuing to be comfortable with the talent that you're seeing out there with the timelines that you've disclosed?
Thank you, Hassan. Okay, first off, let's talk about the content, the EBITDA margin, the CapEx per pound, the billion pounds.
One of the things that we have been really excited about as we scale the technology in Ironton is just that it's working better than we expected to work at scale. By that, I mean specifically about the fundamentals of the engineering. As we watch this plant operate at commercial scale, we see specific unit operations do what they're supposed to do, and in many cases, do what they're supposed to do more efficiently than we expected. When you take that learning from Ironton and then couple it with all of the other operational stuff, right? I mean, all of the improvements we've made to improve the reliability, all of the learnings we've had for how to run the facility, those are kind of the brass tacks, tactical things we work on every day.
When we take those tactical learnings and couple it with some of the technology advantages that are starting to come forward, it allows us to map out how to grow the capacity of this technology in a much more efficient way. One of our investors gave this example, and I think it is really illustrative. Starting up a new technology is like walking into a pitch-black house. Okay? Everything is dark. You kind of do not know where the furniture is, and you are looking around to find out how to navigate the house. Eventually, you find the first light switch, and the room lights up, and you are like, "Oh, I can see it better now. I know where I need to go to be more efficient." You get to the next room. You flip a light switch. "Oh, now I get it.
I know where to go. With every successive step we have taken at PureCycle, the same thing has happened. We learned how to operate CP1. We learned how to operate CP2. We learned how to design better seals. We learned how to handle the screen changer on the back end, etc., etc., etc. There are thousands of learnings that we've taken in from this experience that we're going to be able to design into and do better with the future plans. Look, we have been seeing everything else that the world has been seeing around inflation and cost challenges, schedule challenges, all these things. When you take what we've learned from Ironton and you really integrate that into how you think about the future lines, you can really take some pretty significant steps on cost, and that's what we're doing here.
I think from a CapEx per pound, a billion pounds of growth, that's how I would describe how we got there on that. When it comes to the EBITDA margins, look, I mean, there's still tremendous desire for good quality recycled product, okay? It takes a long time to get qualified. It's a new product in the market. Customers are taking their time to walk through all of this. At the end of the day, a couple of things are happening. One, there's a lot of brand interest. It's growing. There's a lot of regulatory winds that are coming, and that's a 2028 and 2030 type timeline, which this growth plan will position us well for. Also, getting back to the tech, I mean, we are dropping significant operational costs in our facilities for future builds that's going to help us on the margin front.
Yeah, Hassan, I mean, we feel really good about our estimates. They are estimates, okay? A lot of things can change. The world is evolving every day. We feel really strong about our technology position, our position in the market. Quite frankly, this growth plan provides certainty to customers as well. When you're talking to some of the really big global brands, one, they want to know that you're going to be there. They want to know that it's going to work, and then they want to know that they have certainty that the growth is coming, and they can count on your volume being part of their portfolio. Honestly, I think that this announcement on our growth plan is going to accelerate extremely positive discussions with major brands all around the world.
Then getting to your last point, I think I've mentioned this a couple of times. Everybody's like, "Hey, what are you worried about? What keeps you up at night?" These type of questions. For the longest time, I have always been very focused on our team and growing people and growing our talent and getting the right people on the team. The one thing I'll say is what we've been able to achieve over the last four years is a pretty good example of the character of individuals on this team, character of people, the capability of the people, what we're able to do. I think that that should give the market a lot of confidence that we've got the right foundational team today. I would also say that the PureCycle brand continues to strengthen, okay?
As we continue to deliver on the promise of PureCycle, we show growth, we show the earnings capability across this facility, we are beginning to attract more and more people to the team, which I think will fill the pipeline for really quality talent going forward. I'm very bullish on the talent piece of this. Maybe one last comment here, Hassan, with respect to Thailand. Look, our relationship with IRPC is very strong. We've been working with this group of people for over a year now. They've got an incredibly strong integrated facility there in Thailand, and they've got a lot of talented people there as well. We expect to bring some of those people onto our team to help the project, to help the operations going forward, and that'll be an integrated and very positive discussion with that team over there.
Tha nk you, Hassan, for that question. Really excited.
Very clear and concise. Appreciate the detailed answer, Dustin. Just as a quick follow-up, I mean, with all of these successes and the capital raise and the like, I mean, and obviously sort of global growth projects now and more and more interest from other sort of recyclers and polypropylene producers out there, I mean, embedded in there somewhere is obviously the fact that commercialization is moving along at a rapid rate. I know I do not want to take away from the announcement of today, but could you shed some further light on where Ironton commercialization sits today?
Yeah. I mean, look, we still feel really good about this. It has just been a couple of weeks since we had our last quarterly, and we showed the pipeline for trials. Those are still on track and moving really well.
What I'll tell you is this. If you look at the map from the last earnings package, it showed something like 1 billion lbs-2 billion lbs of potential demand from the trials we're working on. That's 10x Ironton. As these trials begin to hit, it's going to turn on like a fire hose. We're consistent today with what we've said in the past that Q1 and Q2 will be similar and relatively low revenue numbers, but Q3, we hope to exit with near Ironton break-even numbers, and Q4 and Q1, we hope to exit with near break-even corporate numbers. That's on the order of $4 million at the end of Q3 per month, and at the end of Q4, Q1, around $8 million. We're still on track for that. We see a lot of positive discussions.
We see a lot of new discussions, interesting concepts for how to use the material that are coming in. I would just tell people that this is on track. More will be coming. We'll make more announcements in the future, and it shouldn't be an area of concern for people.
Very helpful. Thank you so much, Dustin.
Thank you, Hassan.
Our next question coming from the line of Eric Stine with Craig-Hallum Capital Group. You'll let us know when.
Good morning, Dustin.
How are you doing, Eric?
Hey, doing well. Thanks. Maybe could you first just talk about the CapEx? I know that clearly you learned a lot at Ironton. If I think back to the 100 million plus lbs there, I mean, I think the all-in number was $250 million-$300 million.
Obviously, coming down from that, the $2 billion that you referenced for the remaining $900 million to get to this billion-pound target, I mean, it seems like you're still either you're couching that a little bit or you're still expecting that that's higher than $2 per pound. Just curious kind of what visibility you have into that confidence level that you can get to and below that $2 per pound and just what you're seeing in some of these other markets.
Yeah. Let's start with Ironton. Ironton was $365 million with a capacity of 107 million. So it was on the order of $3.1 per pound. Then let's pivot the discussion into Gen 1 and Gen 2, okay? Gen 1 will be the 130 million lb lines. Those will have slightly higher CapEx per pound than the Gen 2.
As we scale the Gen 2, the CapEx per pound will come down. Let's talk about the two Gen 1s. The first is Thailand, and the second is Antwerp. A lot of the cost that comes in with these facilities can be broken into both inside boundary limits, which is like the purification technology, and then the outside boundary limits, which is the infrastructure needed to run it, okay? The level of infrastructure that's already available to you that you do not have to spend money on improves the overall quality of the project. When we look at both Antwerp and Thailand, both of those facilities are set into industrial complexes where we have some utilities available. In Thailand, we have many utilities available. In Antwerp, we have a little less, but also we have utilities available.
With both of those scenarios, we're showing reduced CapEx because we don't have to spend what the industrial complex already provides. When you get into the details of Thailand, we show the total all-in cost for Thailand to be around $220 million, and that includes about $30 million of contingency. You can look at those numbers in terms of with contingency, without contingency. I think they moved from like $1.40 - $1.70 per pound, okay? Those are hard numbers validated by an independent project EPC firm that we're going to start executing on really immediately in the second half of 2 025, okay? We feel really good.
Why is that number so low?
Because we don't have to build steam. We don't have to build heating.
We do not have to build roads or retention or firewater or flares or many of the other infrastructure support items that are required to run a facility like this. We are seeing tremendous benefits there, and I believe it is a very good number. When you come to Antwerp, the number is a bit higher. It is in the 300 type number, which is an over $2 per pound type CapEx installation. There we have less roads, less firewater, no steam that we need to build. There is some infrastructure we need to build in Antwerp, more than what we have to build in Thailand, but less than what we are going to have to build in other facilities. We feel really good about the Gen 1 designs because we are placing them in locations where we have already got infrastructure available to us.
When you move to the Gen 2 design, this is still in engineering. We have extremely high confidence in our ability to scale the technology because of what we've learned at Ironton. Those facilities are going to be 300 or more, okay? When you scale the technology that way, you get lots of benefits, okay? Your variable cost goes down because the steam per pound of capacity and the electricity per pound of capacity reduces. You do not have to build equipment bigger as opposed to adding pieces of equipment. By doing that, the overall cost per pound drops a lot. We are in the middle of validating the final Gen 2 design basis, but we feel really good about the less than $2 per pound. I mean, Eric, what is really exciting about all of this is we are still learning.
We're still improving, and there's a lot more gains to be gotten over the next five to 10 years. As we integrate these learnings in, we continue to get better with what we do. Our CapEx per pound is going to start getting closer and closer and closer to virgin polypropylene facilities. When that happens, our OpEx is lower than virgin. Our CapEx will be equivalent to virgin. When that happens, I see the growth potential for this company really increasing. That's really the direction that we're trying to go.
Okay. That's very helpful. Thank you for those details. Maybe then just turn into the economics. You mentioned that they're proven to be pretty robust, and we'll start to get more insight into what that looks like here going forward as things play out.
Just curious a little maybe or thoughts from you on just economics in different regions. I mean, is this something where you think that differs between Thailand, Europe, the United States, or is this you're selling to global brands, they all kind of act the same, and so there should not be much of a difference between areas?
Yeah. No, it is a great question. There are definitely differences in the areas. I would tell you that European is very, let's say, developed, integrated, very committed to the recycling plans. I think the regulatory support as well as the brand leadership in Europe is going to drive good value in that continent. The Antwerp project looks really good there because we have strong brand alignment with that region. The U.S. is also right there. I think there are a lot of companies who are embracing the recycling initiatives.
Like you said, the global brands pull that in. In the U.S., you've also got a lower cost profile. Where you may not have quite as much recycling strength in the U.S., you can make up for that by having a stronger cost position. When you think about Asia, Asia is definitely lagging in terms of overall adoption of recycling. We see that as a future play. I mean, this always happens this way that Asia will begin to adopt as the rest of the world adopts. Largely, it's because of the thing that you mentioned, which is global brand adoption. When you look at some of these global brands, I mean, they are highly efficient animals, okay? They do things very, very well. One of the ways that they find efficiency is they do things consistently around the world.
You have got an automotive or a big brand that likes to say things like, "I want this spec to be equivalent in all the regions in the world." They adopt these requirements, and they allocate them equivalently around the world. When that happens, you end up with, let's say, a globalization drive for specs across the world, and that lifts up Asia to be more consistent with the U.S. and Europe. I do see what you said happening very quickly. I think some of these global brands will look at PureCycle as the only company who is really putting forward a global plan for recycled supply in all three key regions. I think that they are going to be very excited by that. I think that is going to help drive earnings in Thailand as well.
Thailand is also a very unique place. If you do some searching on Thailand, what you'll find is highly efficient when it comes to import and export. The ability to export product out of Thailand and into the U.S. or into Europe will be, I think, quite valuable. We've got the asset structure in Thailand to be able to do it with the deep port access there on site. We'll be able to fully take advantag e of that as well.
Yeah. And TTT, obviously. I know them, and that's a very significant partner. Okay. Thank you.
Yeah. Thanks, Eric.
Thank you. Our next question coming from the line of Andres Sheppard with Cantor Fitzgerald, your line is now op en.
Hi. This is Anand on for Andres. Congrats on the capital raise and the announcements, and thanks for taking our questions.
Firstly, I was wondering if you could go into a little bit more detail on the future Gen 2 line at Augusta and give us a little bit more color there on what that would look like and the metrics for that.
Yeah. Gen 2 at Augusta, we're really excited about. We've done a lot of work with the local economic development authority. I can't give enough credit to that group of people there. They've really been visionaries on how to develop that park, and we've partnered closely with them. They've done a really good job of bringing people into the park. I think, first off, we see, let's say, new synergies emerging with respect to shared utilities with some partners. I think, directionally, that's going to help us on CapEx per pound.
I think, big picture, as you begin to scale the overall capacity of these Gen 2 facilities, the steam and electricity, which are kind of the fundamental inputs for variable cost, the steam and electricity that you plug into those facilities drops per pound. It gives you a really nice variable cost advantage. From a build perspective, the more that you can build your systems bigger and, let's say, add less new components, the better you're going to be at dropping the cost. With some of our solvent circulation systems and some of our big operations in the facility, we see the components getting bigger as opposed to adding more of them, and that's going to bring us some good synergy. We're really excited about where this goes.
Now, we have not announced the actual capacity yet. 300 or higher is what we are saying right now. I do not know exactly where that is going to land yet. I see having a lot of opportunity to leverage that to get more CapEx per pound efficiencies. Thank you, Anand. That is a good question.
Thanks for the color. Just as a follow-up, now that you have begun generating revenues and commercialized the product, I know you briefly touched on this, but can you talk a little bit about what you have learned at Ironton and how that helps you guys going forward?
Yeah. I mean, look, Ironton is an amazing place filled with a lot of amazing people. They have got the grit, perseverance, and determination like nothing I have ever seen before in my career. Their ability to find and solve problems is second to none, okay? They are great at it.
I think that we do this on a day-to-day basis. When you think about the learnings from Ironton, I think a couple of standouts are on the reliability front. We know we've had a lot of problems with seals in the past, but we will eliminate that in future designs. That is going to be one very positive. We have also learned a lot about the technology of co-product 1 and co-product 2. Co-product 1 and co-product 2 are very challenging streams to manage, but we've gotten a lot smarter about how to design solutions then for CP2. CP1 and CP2 are going to be really positive improvements for us for future plants. There is just the general know-how.
To be honest with you, Anand, the first time we started solvent circulation or the first time we put feed into the plant, we just did not know how the plant would react at scale. As we did it and we learned how to do it more effectively, we got better at it. Now it is more repeatable. It is like the light switch in the room that I talked about before. The full house is illuminated now. We can walk aroun d and know where all the furniture is and know how to navigate it, which allows us to put together a more efficient plan going forward.
Gotcha. Thanks for all the color. Congrats again. I will pass it on.
Thank you.
Thank you. I am showing no further questions on the Q&A queue at this time. I will now turn the call back over to Mr. Dustin Olson for any closing remarks.
Yeah. Thank you. This is a big day for PureCycle. Our team, our shareholders, and our plant, the next five years are going to be a lot of fun. I promise you that we will work just as hard for you over the next five years that we have the last five years. Thank you for your support. Thank you for your attention today. We'll see you later.
This concludes today's conference call. Thank you for your participation, and you may now disconnect.