• Italy based partnership establishes a dedicated chemical recycling supply chain for end-of-life and production cable plastics
• Versalis’s Hoop® technology enables recovery of up to 60% of difficult-to-recycle XLPE insulation at industrial scale
• Project supports EU circular economy and industrial decarbonization goals, with pilot operations starting in 2026

Prysmian and Versalis have signed a strategic partnership aimed at tackling one of the cable industry’s most persistent waste challenges: the recycling of complex plastic insulation layers used in energy cables. The agreement sets out a closed-loop, chemical recycling supply chain that will convert plastic cable scrap into new polymers for use in next-generation cables, anchoring the initiative in Italy and positioning it as a potential model for wider European adoption.

The collaboration brings together Prysmian, one of the world’s largest cable manufacturers, and Versalis, Eni’s chemicals arm, at a moment when regulators and industrial customers are pushing harder for credible circular economy solutions across energy infrastructure.

From Cable Scrap to New Polymers

Under the agreement, Prysmian will collect plastic scrap generated both from its own manufacturing processes and from decommissioned cables recovered from major customers. This includes materials that have historically been difficult or uneconomic to recycle, particularly cross-linked polyethylene, or XLPE, which is widely used to insulate high-performance energy cables.

Versalis will process this material at its Mantua plant using its proprietary Hoop® chemical recycling technology. The process converts mixed and cross-linked plastic waste into pyrolysis oil, which is then transformed into feedstock suitable for producing new plastic polymers. Prysmian will reintroduce these polymers into its cable manufacturing operations, effectively closing the material loop.

Energy cables often contain multiple polymeric layers bonded together, making mechanical recycling impractical. Chemical recycling offers a route to recover value from these materials without compromising performance requirements for new products.

Scaling Chemical Recycling in the Cable Industry

According to the companies, around 60% of XLPE scrap processed through the Hoop® system is expected to be repurposed into reusable material for new cable production. This marks a significant advance for a sector where recycling rates for cross-linked plastics have remained low.

For the first time, the partners say, a cross linked cable with all polymeric layers combined can be chemically recycled at scale. This capability is critical as Europe faces rising volumes of cable waste linked to grid upgrades, renewable energy expansion, and the decommissioning of ageing infrastructure.

The pilot phase of the project is scheduled to begin in Italy in the second half of 2026, with scope for expansion depending on technical performance and supply chain economics.

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Corporate Strategy and Sustainability Priorities

The partnership aligns closely with both companies’ stated sustainability strategies. For Prysmian, reducing Scope 3 emissions and material intensity across its supply chain has become increasingly important as customers scrutinise lifecycle impacts alongside technical performance.

Srinivas Siripurapu, Chief Sustainability, Innovation and R&D Officer at Prysmian, said: “Thanks to this agreement, we will give new life to old scrap. The first pilot project will kick off in Italy in the second half of 2026, and this step-forward is another strong signal of our continued focus on finding new sustainable solutions for our customers, and the planet, as we help to reduce the environmental impact of our supply chain and reduce emissions.”

For Versalis, the project supports Eni’s broader strategy to reposition its chemicals business around circularity, advanced recycling technologies, and lower-carbon industrial processes.

Fabio Assandri, Head of R&D, Licensing & Projects Development at Versalis, said: “This collaboration with Prysmian is strategic and demonstrates how our research and advanced technologies can provide concrete solutions for managing the end-of-life of complex products. Thanks to this joint project, we actively contribute to making the industrial sector more sustainable and circular.”

Implications for Policy, Finance, and Industry

The initiative lands as the European Union tightens rules on waste, recycling, and sustainable product design under frameworks such as the Circular Economy Action Plan. Industrial-scale solutions for hard-to-recycle plastics are likely to play a growing role as compliance costs rise and landfill options narrow.

For investors and corporate leaders, the partnership highlights how chemical recycling is moving from pilot concepts toward embedded industrial applications. If successful, the model could reduce raw material risk, lower lifecycle emissions, and create new value streams from waste previously treated as a cost.

While the initial focus remains on Italy, the strategic implications extend beyond national borders. As grid investment accelerates across Europe and globally, the ability to recover and reuse materials from retired infrastructure may become a defining factor in the sustainability performance of energy supply chains.

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