Loop Industries (NASDAQ: LOOP) announced that its subsidiary Loop Canada Inc. will receive up to C$2.92 million in funding and advisory services from the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP).

The funding supports the company's Infinite Loop technology platform, which processes hard-to-recycle plastic waste. The multi-year project focuses on scale-up, engineering, operational efficiency and deployment initiatives for the proprietary chemical recycling process.

The non-dilutive funding will advance Loop's technology platform and support the company's transition toward commercial scale deployment. The project also addresses operational readiness, commercial execution and overhead expenditure reduction ahead of commercialization.

"This project will enable us to further validate our technology platform and scale-up strategy," said Daniel Solomita, founder and chief executive officer of Loop Industries. "The support from NRC IRAP will help strengthen our operational and technical foundation as we prepare for broader deployment."

Loop Industries operates technology that depolymerizes waste PET plastic and polyester fiber, including plastic bottles and textiles, into base building block monomers. These materials are then processed to create PET resin for food-grade packaging and polyester fiber applications.

The funding comes through the NRC IRAP Clean Technology initiative. Industry Minister Mélanie Joly noted the government's investment in companies addressing environmental challenges like hard-to-recycle plastic waste.