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The technology relies on water heated to about 400 degrees in the reactor containing "a few simple metallic ingredients" to break synthetic polymers back into their original components. For plastics, the chemical recycling produces a mix of hydrocarbon fractions, such as ethylene and naphtha, that can used as feedstock for new plastics or fuel.

"It's like a continuous flow pressure cooker," Dr Humphreys said. "We’re re-refining plastic, that’s all we’re doing.”

"Our process doesn’t the toxic gasses that pyrolysis [using water at high temperatures] and incineration can do," he said. The Cat-HTR process also yields 800-850 kilograms per tonne of waste in reusable materials, compared with 500-600 kilograms, with lower energy requirements.

Licella and its iQ Renew subsidiary claim the technology to create a near "plastics neutral" economy, tapping its access to 1 million households' kerbside bins and landfill, reducing demand for fossil fuel-sourced material.

The company, though, has had its progress hampered by the NSW Environment Protection Authority, particularly its energy from waste policy.

“The difficulty that [policy] has for companies like us trying to get established, whether physical or chemical recycling, is tremendous," Dr Humphreys said.

“We’re probably one of the only states that classes [even recyclable materials] as waste," he said. "Waste automatically assumes it’s going to contaminate and pollute the environment."

Victoria, on the other hand, treats waste as a recoverable resource and is one reason Licella may look south. It also has plans to expand into North America and Europe, and has already planning a plant in Timor Leste that could be operational by 2021 or 2022.

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"We estimate things take two to four times longer in NSW, versus, say Victoria," a spokeswoman said. "Their compliance is extremely strict and they monitor against an existing set of policies that do not embrace new technologies [or] the current issues related to plastic and recycling."

Matt Kean, Energy and Environment Minister, was contacted by Licella in his former role as Innovation Minister. His office has also been discussing the issues faced by the company.

The EPA has also met Licella to discuss its technology.

"We are committed to increasing the rates of plastic recycling and reuse and encourage innovative technologies that would help achieve this," an agency spokeswoman said.

"We are currently developing a 20-year Waste Strategy for NSW to reduce waste, drive sustainable recycling markets and identify and improve waste infrastructure," she added. "This will include strategies for reducing plastic waste as well as reviewing the entire waste management framework in NSW, including infrastructure needs."