Xycle secures financing for commercial-scale plastics recycling plant

Xycle, a plastics recycling startup based in the Netherlands, has secured financing to fund the construction of its first commercial-scale plant, with the funds coming from a combination of equity investment from a consortium including Dow, ING, Invest-NL, Vopak and senior debt from Polestar Capital.

Xycle, a chemical recycler that uses a pyrolysis process to break down material, plans to use the funds to support the construction of a flagship facility at the Port of Rotterdam, Netherlands, which it views as a major international gateway to Europe.

“Our innovative chemical recycling technology offers a credible and scalable route to divert plastic waste from incineration, landfill or our natural environment,” Xycle CEO Arnd Thomas says. “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 fulfill the promise of our technology and accelerate a circular economy for plastics.”

Xycle’s chemical recycling technology uses low-temperature pyrolysis to break down hard-to-recycle plastic scrap into pyrolysis oil, increasing the liquid fraction available for use as cracker feedstock in new plastic production. The company says its technology enables plastic scrap that otherwise would go to landfill or incineration to be reused in high-value applications, including food-grade packaging, medical and automotive components.

One of Xycle’s investors, Midland, Michigan-based Dow, has an offtake agreement for the circular feedstock produced and will use it to manufacture virgin-quality circular plastics.

“We are thrilled to announce this strategic investment in Xycle, which marks another pivotal step towards our goal to transform the waste,” says Stephanie Kalil, Dow’s commercial vice president, EMEA, packaging and specialty plastics. “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.”

Xycle expects the facility to be fully operational by the fourth quarter of 2026 and will be able to process 21,000 metric tons of plastic annually. The facility will have access to transport plastic scrap into the plant and distribute pyrolysis oil from the plant to the offtake partners.

The company says the modular layout of its facilities allows production to scale up or down depending on demand, ensuring flexibility and efficiency in operations. Xycle plans to develop more chemical recycling facilities globally, utilizing larger reactor sizes to increase single-plant capacity to 100,000 metric tons annually.

“ING is pleased to have stepped in as investor in Xycle alongside the founders and our core clients Dow, Vopak and Invest-NL,” says Mark Weustink, head of sustainable investments at ING. “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.”