Xycle Secures Funding for First Chemical Recycling Facility in Rotterdam

Xycle Plant Europoort Artist Impression  Credit: Xycle

Xycle, a Rotterdam-based startup pioneering the future of chemical recycling, has successfully secured funding to build its first commercial-scale plant in the Port of Rotterdam. The company is focused on addressing the global plastic waste crisis by converting hard-to-recycle plastics into valuable raw materials through advanced chemical recycling technology.

A diverse consortium of investors—Dow, ING, Invest-NL (partly supported by InvestEU), Vopak, and Polestar Capital—has contributed to the funding. This financing package combines both equity investment and senior debt, positioning Xycle to build a flagship recycling facility at the Port of Rotterdam, one of Europe’s most strategic industrial hubs.

Pioneering Technology for Circular Plastics

According to Xycle, its innovative approach to chemical recycling leverages low-temperature pyrolysis technology to break down hard-to-recycle plastics into valuable pyrolysis oil. This oil is then used as a feedstock for producing new plastic, offering a sustainable alternative to conventional recycling methods. By redirecting plastics away from incineration or landfills, Xycle’s process not only reduces environmental harm but also facilitates the creation of high-quality plastic products—ranging from food-grade packaging to automotive components.

Dow, a key investor in the project and a global leader in material sciences, will purchase the recycled feedstock for use in manufacturing virgin-quality circular plastics, meeting the increasing global demand for sustainable products.

Plant Details and Strategic Location

Xycle says its new facility will have an annual processing capacity of 21,000 metric tons of plastic waste. The choice of the Port of Rotterdam is strategic, offering unrivaled access to both the transportation of raw plastic waste and the distribution of the produced pyrolysis oil to global markets. With its extensive petrochemical infrastructure and close proximity to potential partners and suppliers, Rotterdam serves as the perfect base for this pioneering initiative.

The plant is set to begin operations by Q4 2026, Xycle states, with a flexible, modular design that allows the facility to scale production according to demand. Xycle’s vision includes expanding its reach with more global recycling plants, aiming for larger-scale reactors that could process up to 100,000 metric tons of waste annually.

Partner Voices

Leading figures from the investment consortium have expressed their excitement about the project. Stephanie Kalil, Vice President of Commercial, EMEA at Dow, emphasized that Xycle’s technology is a crucial complement to Dow’s ongoing efforts to develop circular solutions for plastics. She added, “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.”

Mark Weustink, Head of Sustainable Investments at ING, highlighted the alignment of Xycle’s technology with ING’s sustainability goals. “ING is pleased to have stepped in as investor in Xycle alongside the founders and our core clients Dow, Vopak and Invest-NL. Xycle fits very well with ING’s ambition to invest in companies that have an innovative technology and make a positive environmental impact.”

Lars Groenveld, Impact Investor at Invest-NL, praised Xycle’s efforts to scale its technology and accelerate the transition to a more sustainable global economy. “Xycle offers a clear path towards realizing commercial scale operations in the near future. This investment reflects our ambition to enabling sustainable innovations and empowering entrepreneurs to address the major societal challenges of our time.”

Daan van Kassel, Fund Director at Polestar Capital, also commended Xycle’s efficient use of pyrolysis technology, which is capable of processing diverse plastic waste streams. “Xycle is one of the most promising projects in the chemical recycling of plastics. With its very efficient pyrolysis technology, Xycle is able to process a wide variety of mixed waste plastic and convert them in recycled feedstock to produce virgin-grade plastic again,” he said.

Walter Moone, President of Vopak Netherlands, reiterated the importance of collaborative efforts in developing new infrastructure solutions. “We’re very pleased with this milestone for Xycle and proud that Vopak is contributing to this,” he added.

Looking Ahead: A Circular Future for Plastics

As part of its long-term vision, Xycle is committed to scaling its chemical recycling facilities globally. The company plans to develop larger reactors, which would allow each plant to process up to 100,000 metric tons of plastic waste per year, further enhancing the impact of its technology. By transforming waste into resources, Xycle is not only contributing to the circular economy but also setting a new standard for sustainable practices in the plastics industry.