Dow Invests in Advanced Recycling Startup Xycle to Boost Circular Feedstock Access
In a strategic move to further its commitment to transforming waste and advancing a circular economy for plastics, Dow has made an equity investment in Xycle, a Rotterdam-based advanced recycling startup. This investment was made alongside key partners such as ING, Invest-NL, Polestar Capital, and Vopak, marking a significant step in advancing sustainable recycling technologies and expanding the availability of circular feedstocks. The funds raised will help construct Xycle’s first commercial-scale advanced recycling facility in the Port of Rotterdam, which will play a critical role in reducing plastic waste and producing high-quality circular plastics for various industries.
A Strategic Partnership for Circular Economy Goals
The collaboration between Dow and Xycle highlights their shared vision of creating a circular economy for plastics, where waste is continuously reused and turned into valuable materials. Dow’s investment is part of its broader effort to increase access to high-quality circular feedstocks and promote the development of recycling technologies that can address the growing global challenge of plastic waste. With an emphasis on advanced recycling solutions, this partnership will contribute to the transformation of plastic waste into new, high-value products, meeting the rising demand for sustainable materials.
The total investment, which includes both equity investments and senior debt, will fund the construction of Xycle’s advanced recycling plant in the Port of Rotterdam. This facility will have the capacity to process up to 21 kilotons of plastic waste per year (kta), a crucial milestone in scaling up the capacity for recycling plastics that would otherwise end up in landfills or incinerators. The plant is expected to be operational by the fourth quarter of 2026, marking a significant step forward in the development of advanced recycling technologies in Europe.
Advanced Recycling Technology and Pyrolysis Process
Xycle’s proprietary pyrolysis technology is central to the success of the partnership. Pyrolysis, a process that uses low temperatures to break down difficult-to-recycle plastic waste, produces pyrolysis oil, which can be used as feedstock in the production of new plastics. This process enables plastics that would normally be considered unrecyclable, such as mixed plastics, to be transformed into high-quality materials for a wide range of applications.
Pyrolysis increases the liquid fraction available from plastic waste, which is then used as a valuable raw material (cracker feedstock) in the production of virgin-quality plastics. These plastics can be used in critical applications, including food-grade packaging, medical supplies, and automotive components. Xycle’s technology stands out for its efficiency in delivering high yields of cracker feedstock, making it a powerful solution for scaling the circular economy for plastics.
“We are thrilled to announce this strategic investment in Xycle, which marks another pivotal step towards our goal to transform plastic waste into valuable materials,” said Stephanie Kalil, Commercial Vice President at Dow Packaging & Specialty Plastics EMEA. “The performance and efficiency of Xycle’s technology strongly complements our increasingly diverse global portfolio of recycling solutions. We believe the robust financial backing and credibility of our consortium partners demonstrate the strength of the opportunity to scale advanced recycling technologies and meet the growing customer demand for circular products.”
Flexibility and Scalability of Xycle’s Operations
Xycle’s approach to advanced recycling also offers notable advantages in terms of flexibility and scalability. The modular design of its recycling facilities allows for capacity to scale up or down depending on demand, ensuring that the operations can remain efficient and adaptable as market needs evolve. This scalability is vital in meeting future demand for circular feedstocks as the global shift toward sustainable and circular plastics intensifies.
In the coming years, Xycle plans to expand its operations and develop additional advanced recycling facilities worldwide. These facilities will use larger reactors to increase the capacity of each plant to process up to 100 kta of plastic waste. This ambitious expansion is expected to significantly contribute to the circular economy by increasing the supply of recycled feedstock for plastics manufacturing on a global scale.
Arnd Thomas, CEO of Xycle Holding, emphasized the importance of the partnership with Dow, stating, “Dow’s investment – alongside our other partners – in Xycle’s first commercial facility marks a significant step in developing and expanding our innovative pyrolysis-based technology. This technology has been shown to deliver best-in-class yield for cracker feedstock. Working closely with Dow will enable us to scale our technology and accelerate the transition to a circular economy for plastics.”
A Comprehensive Approach to Recycling
Dow’s investment in Xycle is not an isolated effort but part of a broader strategy to transform plastic waste and other alternative feedstocks into renewable solutions. Through a combination of mechanical and advanced recycling technologies, Dow aims to process 3 million metric tons of circular and renewable materials annually. The addition of Xycle’s pyrolysis technology complements Dow’s existing recycling solutions, offering the ability to recycle a wider range of plastic waste.
Advanced recycling processes like Xycle’s allow for the recycling of mixed plastics, which are often too complex or contaminated to be processed through traditional mechanical recycling methods. By converting these materials into valuable feedstocks, Xycle’s technology reduces the amount of plastic waste that ends up in landfills or incineration, contributing to a more sustainable and circular plastics economy.
“Dow and Xycle share a commitment to advancing innovative recycling solutions that create a circular economy for plastics,” said Kalil. “This investment is an example of how Dow works with expert partners to build ecosystems that collect, reuse, or recycle waste to meet growing customer demand for sustainable products.”
The Road Ahead: Scaling and Expansion
As the world faces increasing environmental challenges, the need for scalable and effective recycling solutions has never been greater. Dow’s partnership with Xycle represents a significant step toward a more sustainable future, where plastic waste is no longer a burden but a resource that can be continuously recycled into high-quality materials. The new recycling plant in Rotterdam is just the beginning of what is expected to be a broader global initiative aimed at scaling advanced recycling technologies.
By investing in Xycle, Dow is helping to accelerate the development and deployment of solutions that are essential for achieving a circular economy. This initiative will contribute not only to reducing plastic waste but also to meeting the growing demand for circular plastics in industries ranging from packaging to automotive manufacturing. With the full backing of key stakeholders, Dow and Xycle are well-positioned to lead the way in transforming the global recycling landscape.
Explore more by visiting www.dow.com/materialsecosystemopens in a new tab.
About Dow
Dow (NYSE: DOW) is one of the world’s leading materials science companies, serving customers in high-growth markets such as packaging, infrastructure, mobility and consumer applications. Our global breadth, asset integration and scale, focused innovation, leading business positions and commitment to sustainability enable us to achieve profitable growth and help deliver a sustainable future. We operate manufacturing sites in 30 countries and employ approximately 36,000 people. Dow delivered sales of approximately $43 billion in 2024. References to Dow or the Company mean Dow Inc. and its subsidiaries. Learn more about us and our ambition to be the most innovative, customer-centric, inclusive and sustainable materials science company in the world by visiting www.dow.comopens in a new tab.
About Xycle
Xycle is committed to developing innovative solutions that contribute to a more sustainable world. As pioneers of an innovative chemical recycling technology, we transform hard-to-recycle plastic waste—currently destined for landfill or incineration—into valuable resources, contributing to a circular economy for plastics. Xycle’s shareholders are Dow, ING, Invest NL, NoWIT, Teknow and Vopak. Discover how Xycle is driving sustainability forward, visit www.xyclegroup.comopens in a new tab to learn more.
