Novoloop Upcycled Plastic: Production Milestone Reached

Novoloop Secures Manufacturing Deal for Upcycled Thermoplastic Polyurethane

Novoloop, a startup focused on plastic recycling, has established a partnership with a significant manufacturer to facilitate the commercial production of its upcycled thermoplastic polyurethane. This information was reported exclusively to TechCrunch.

Overcoming the "Valley of Death"

This agreement is instrumental in helping the Menlo Park-based Novoloop navigate the challenging "valley of death" frequently encountered by climate tech startups.

Hardware-dependent startups are particularly vulnerable during this phase, often struggling to transition from proven technology to sustainable revenue generation.

The Collaboration with Huide Science & Technology

The terms of the agreement stipulate that Novoloop will provide Huide Science & Technology with a crucial chemical component used in the creation of thermoplastic polyurethane.

Novoloop produces this material, known as a polyol, utilizing post-consumer polyethylene waste, such as plastic bags – materials notoriously difficult to recycle.

Applications of Thermoplastic Polyurethane

Thermoplastic polyurethanes (TPU) represent a versatile plastic utilized in a wide array of products, ranging from athletic footwear to essential medical devices.

Scaling Production Capabilities

“We have effectively secured the commercial relationship for this product line,” stated Miranda Wang, co-founder and CEO of Novoloop, in an interview with TechCrunch.

Currently, Novoloop’s capacity to supply polyols is limited. The startup recently commissioned a demonstration plant in India, capable of producing tens of tons of the material annually.

Pilot Projects and Existing Partnerships

The demonstration plant’s output is sufficient for substantial pilot projects, including an upcoming collaboration with a footwear company that will be revealed shortly.

Previously, Novoloop provided its Lifecycled material to On, a Swiss shoe manufacturer, for use in the tread of its Cloudprime sneaker.

The Path to Profitability

Wang emphasized that agreements like the one with Huide are vital for Novoloop’s continued advancement. “The primary obstacle to profitability lies in achieving economies of scale,” she explained.

“A significant portion of our focus next year will be dedicated to finalizing these customer agreements to secure financing for the construction of commercial-scale facilities.”

Future Expansion and Price Parity

Novoloop anticipates the completion and operation of its commercial plant by early 2028, contingent upon securing deals and financing.

The initial phase of the plant is projected to yield enough polyols to produce approximately 16,000 tons of TPU per year.

“At these production volumes, we expect to reach price parity with virgin TPUs,” Wang concluded.