Households in Scotland generate over 200,000 tonnes of plastic waste every year – enough to fill Hampden Park.

WRAP Scotland director, Iain Gulland, said: “It’s not just households, but Scottish businesses, too, which are creating a large amount of plastics waste, and it is costing Scotland a lot of time, energy and resources to manage.

”However, this GBP5m package turns this situation into a real opportunity.

“Recycling more and more used plastic and returning it into the supply chain as new material right here in Scotland would help protect the environment and conserve valuable resources. It could also contribute to economic recovery by presenting new business opportunities and generating jobs.”

Gulland added: “At the moment, only 15,000 tonnes of plastic used by householders is collected for recycling in Scotland, with the majority of that being sent to Asia for processing.

“This funding package will help develop plastics processing and recycling facilities, transforming Scotland’s approach to managing plastic waste.

“We are inviting bids on a competitive basis and want to see innovative and workable ideas.”

In addition to dealing with plastic bottles, the new facilities will be expected to handle mixed plastics such as yoghurt pots, margarine tubs, salad bags and plastic film. Gulland said that, in the vast majority of cases, these mixed plastics currently end up being disposed of by householders, as systems are not in place to recycle them.

Richard Lochhead, cabinet secretary for rural affairs and the environment, said: “What the Scottish Government wants is to drive practical, Scottish-based solutions.

“The potential spin-offs are exciting. If we sort and recycle the plastics here, we can provide the raw materials for a new generation of manufacturing businesses and create jobs at the same time.

“Creating opportunities close to home makes sense both for the environment and the economy. And, of course, providing a Scottish-based recycling facility will also incentivise Scottish households to recycle more of their waste.”

Businesses and organisations are being asked to submit applications for the Grant Programme, outlining recommended locations and technology, and researched sources for feedstock and markets for the processed polymer. Applications will close at 1.30 pm on Friday, June 26, 2009.

This funding forms part of a larger package of support through the Scottish Government’s Zero Waste Fund.