Xycle, a Rotterdam-based startup focused on promoting a circular economy for plastics through chemical recycling technology, has announced that it has successfully raised funds for the development of its first commercial-scale plant.
The funding comes from a mix of equity investments from a consortium of investors, including Dow, ING, Invest-NL (partly supported by InvestEU), and Vopak, as well as senior debt from Polestar Capital.
This investment will enable Xycle to build a flagship recycling facility, strategically situated in the Port of Rotterdam, a key international hub for Europe.
Arnd Thomas, CEO of Xycle said, “Our innovative chemical recycling technology offers a credible and scalable route to divert plastic waste from incineration, landfill or our natural environment. Securing funding for the construction of our facility in the Port of Rotterdam marks an important step in developing and expanding our unique pyrolysis-based technology, which has been shown to deliver best-in-class pyrolysis yield for cracker feedstock. We are excited to work hand in hand with our investment partners – leveraging the strength of their expertise in their respective sectors – to fulfil the promise of our technology and accelerate a circular economy for plastics.”
Founded in 2020, Xycle converts hard-to-recycle plastic waste—typically sent to landfills or incinerated—into valuable resources, supporting a circular economy for plastics.
The startup’s chemical recycling process utilizes low-temperature pyrolysis to efficiently break down challenging plastic waste into pyrolysis oil. This oil increases the liquid fraction available for use as cracker feedstock in the production of new plastics. The technology allows plastic waste, which would otherwise end up in landfills or incinerators, to be repurposed for high-value applications such as food-grade packaging, and medical and automotive components.
Walter Moone, President, Vopak Netherlands: “We’re very pleased with this milestone for Xycle and proud that Vopak is contributing to this. Developing new infrastructure solutions and setting up new supply chains in partnership is essential in the energy transition.”
Dow, a key investment partner and a global leader in materials science will purchase the circular feedstock produced and utilize it to create virgin-quality circular plastics, which are in high demand by international brands.
Stephanie Kalil, Commercial Vice President, EMEA, Packaging & Specialty Plastics, Dow: “We are thrilled to announce this strategic investment in Xycle which marks another pivotal step towards our goal to transform the waste. The performance and efficiency of Xycle’s technology strongly complement our increasingly diverse global portfolio of recycling solutions. We believe that the robust financial backing and credibility of our investment partners demonstrates the strength of the opportunity at hand to scale advanced recycling technologies; to address the plastic waste challenge and meet growing customer demand for circular products.”
Xycle’s first commercial-scale plant will be capable of processing 21,000 metric tons of plastic waste each year. Situated in the Port of Rotterdam, this chemical recycling facility will benefit from strategic access to both the transportation of plastic waste to the plant and the distribution of pyrolysis oil to off-take partners. The plant is anticipated to be fully operational by the fourth quarter of 2026.
Looking ahead, Xycle aims to expand by building additional chemical recycling facilities worldwide, utilizing larger reactor sizes to boost the capacity of each plant to 100,000 metric tons annually.
Lars Groenveld, Impact Investor, Invest-NL: “At Invest-NL, we are proud to support Xycle in its mission to scale its plastic recycling technology and accelerate the transition to a circular economy. Xycle offers a clear path towards realising commercial-scale operations shortly. This investment reflects our ambition to enable sustainable innovations and empower entrepreneurs to address the major societal challenges of our time.”
Daan van Kassel, Fund Director, Polestar Capital Circular Debt Fund (PCDF): “Xycle is one of the most promising projects in the chemical recycling of plastics. With its very efficient pyrolysis technology, Xycle can process a wide variety of mixed waste plastic and convert it into recycled feedstock to produce virgin-grade plastic again. PCDF is proud to support Xycle in the funding for their plant in Rotterdam Europoort, and we are confident that the company will make a large positive environmental impact in the years to come.”
