Novoloop: Upcycled Plastic Solutions

The Challenge of Plastic Recycling and Novoloop's Solution

A significant issue exists regarding plastic recycling rates. Currently, only approximately 9% of plastic waste is successfully recycled. A substantial portion of this unrecycled material originates from single-use plastics, such as grocery bags.

This problem stems from both the design of these products – intended for disposal – and the technological difficulties associated with recycling plastic films effectively.

Novoloop's Innovative Upcycling Process

Novoloop, a California-based startup, asserts it has devised a method to transform problematic plastics into materials that are highly sought after by other businesses.

The company has recently concluded a trial run at its demonstration plant, which continuously upcycles plastic waste. This facility is capable of producing up to 70 metric tons annually of thermoplastic polyurethane (TPU).

TPU finds application in a diverse range of products, including footwear and automotive seating. Strong demand has prompted Novoloop to begin planning for a larger production facility.

Securing Funding for Expansion

“We consistently sell out of our production,” stated Miranda Wang, co-founder and CEO of Novoloop, in an interview with TechCrunch.

Following the successful demonstration run, Novoloop has secured $21 million in Series B funding. This investment will be used to finalize the design and initiate construction of its first commercial-scale plant, as exclusively reported to TechCrunch.

The funding round was spearheaded by Taranis, an investment fund affiliated with Perenco, an oil-and-gas company, with additional participation from Valo Ventures and Shop Limited.

Strategic Plant Location and Partnerships

The company is currently evaluating potential locations for its commercial plant, prioritizing sites adjacent to existing chemical facilities. These facilities may offer available land and utilities.

Novoloop envisions a partnership where the other company would own and operate the plant, while Novoloop contributes its process technology and marketing expertise.

“Existing chemical companies often seek avenues for growth,” Wang explained. “This collaboration provides them with such an opportunity without requiring them to navigate a new market or develop independent sales strategies.”

From Series A to Lifecycled TPU

Novoloop had previously raised $21 million in Series A funding. This earlier investment enabled the refinement of its process, leading to a collaboration with running shoe manufacturer On.

On utilized Novoloop’s upcycled material in the tread of its Cloudprime sneaker.

The startup’s upcycled material, branded as Lifecycled TPU (thermoplastic polyurethane), is created by breaking down polyethylene plastic into its constituent monomers.

These monomers are then used to synthesize new polymers with a higher value than the original polyethylene. While more expensive than virgin plastic, the resulting material is “within range” in terms of cost, according to Wang.

Expanding into TPU Recycling

Wang further noted that Novoloop’s experience with TPU has spurred the development of a new business line: the mechanical recycling of TPU scraps from manufacturing facilities.

This process involves adding “performance enhancers” to the recycled TPU, improving its characteristics to match those of virgin material.

Leveraging Global Manufacturing Capabilities

When considering the construction of the demonstration plant, Novoloop evaluated options in the U.S. However, it ultimately chose India.

Aether Industries in India possessed not only a pilot plant but “a plant of pilots,” as described by Wang, meaning a facility dedicated to numerous small-scale trials.

Aether’s expertise in small-scale chemical manufacturing, combined with its ability to repurpose equipment from discontinued pilots, resulted in a projected construction and operational cost ten times lower than building a similar facility in the U.S.

“This level of infrastructure and capability is currently unavailable within the United States,” Wang concluded.