California-based ECO2 Plastics, Inc. has entered into a long-term supply agreement with Peninsula Packaging, LLC, an integrated manufacturer of polyethylene terephthalate (PET) food and industrial packaging products.

Under the terms of the arrangement, Peninsula Packaging agrees to purchase a minimum of 1.5 million pounds per month of recycled PET flake produced by ECO2 for a period of three years.

An official source quoted that material supplied by ECO2 will meet certain quality specifications and will be priced using a mutually agreed upon pricing mechanism.

ECO2 Plastics is a publicly traded company engaged in PET plastic recycling. The company's patented process was developed through a research partnership with Honeywell FM&T and the US Department of Energy.

The firm is the exclusive worldwide licensee of the patented and patent-pending technology.