Dow, ING, Invest-NL, Polestar Capital and Vopak fund first plant of Rotterdam-based chemical recycling company Xycle

Xycle, a pioneering startup committed to advancing a circular economy for plastic through chemical (also known as advanced) recycling technology, announces it has successfully secured financing to fund the construction of its first commercial-scale plant. This marks a significant milestone in the company’s mission to transform plastic waste into valuable raw materials. The funds secured are a combination of equity investment from a consortium of investors; Dow, ING, Invest-NL (partly covered by InvestEU) and Vopak, and senior debt from Polestar Capital. Xycle will use this funding to support construction of a flagship recycling facility, strategically located in the Port of Rotterdam as a major international gateway to 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.”

Xycle’s chemical recycling technology uses low-temperature pyrolysis to efficiently break down difficult-to-recycle plastic waste into pyrolysis oil, increasing the liquid fraction available for use as cracker feedstock in new plastic production. This innovative technology enables plastic waste that would otherwise go to landfill or incineration to be reused in high-value applications, including food-grade packaging, medical and automotive components. Dow, one of the investment partners and a global leader in materials science, will be an off-taker for the circular feedstock produced and will use it to manufacture virgin-quality circular plastics which are in high demand by global brands.

The first commercial-scale plant of Xycle will be able to process 21,000 metric tons of plastic waste annually. Located in the Port of Rotterdam, this chemical recycling facility will have strategic access to the transportation of plastic waste into the plant and distribution of pyrolysis oil from the plant to the off-take partners. Existing petrochemical infrastructure, a network of nearby potential partners and suppliers, and access to other European markets also makes Rotterdam an attractive location.

The site is expected to be fully operational by Q4 2026. The modular layout of Xycle’s facilities allows production to scale up or down depending on demand, ensuring both flexibility and efficiency in operations. In the future, Xycle plans to develop more chemical recycling facilities globally, utilizing larger reactor sizes to increase single plant capacity to 100,000 metric tons annually.

Partner reactions:

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 complements 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.”

Mark Weustink, Head of Sustainable Investments, ING
“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. Dow and Vopak will bring relevant and invaluable expertise, knowledge, and access to networks to Xycle whilst the involvement of Invest-NL underscores the significance of Xycle’s activities for the Dutch economy and its circular ambitions.”

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 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, 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 is able to process a wide variety of mixed waste plastic and convert them in 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.”

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.”