Xycle Secures Significant Funding for Sustainable Recycling in Rotterdam
Rotterdam, Monday, 10 March 2025.
Xycle, a chemical recycling pioneer in Rotterdam, achieves funding for its flagship facility, aiming to process 21,000 tons of plastic waste annually using innovative techniques.
Strategic Investment Consortium
In a significant development for circular economy initiatives, Xycle has secured substantial funding through a combination of equity investments from an impressive consortium including Dow Packaging & Specialty Plastics, ING Wholesale Banking, Invest-NL, and Vopak, alongside senior debt from Polestar Capital [1]. The funding package is estimated to be between €75 million and €100 million [2], representing a strong vote of confidence in chemical recycling technology despite current industry headwinds.
Technology and Operational Timeline
The facility will employ innovative low-temperature pyrolysis technology to convert hard-to-recycle plastics into pyrolysis oil for new products [3]. According to CEO Arnd Thomas, the technology has ‘demonstrated best-in-class pyrolysis yield for cracker feedstock’ [1]. The plant is scheduled to become fully operational by Q4 2026, with a processing capacity of 21,000 metric tons of plastic waste annually [1][2][3].
Industry Context and Market Challenges
This investment comes at a crucial time for the Dutch recycling sector, which has faced significant challenges, with 11 companies filing for bankruptcy before March 2025 due to rising energy costs and competition from Asian markets [2]. The global context underscores the urgency of such initiatives, as currently only 9% of the world’s plastic is recycled [2]. Xycle’s business developer Arie van Vliet notes that investors were particularly attracted by the limited technical risks, as the plant will utilize proven pre-treatment and plastic recycling technology [2].
Future Expansion Plans
Looking ahead, Xycle has outlined ambitious plans for global expansion. The company aims to develop additional chemical recycling facilities worldwide, with future plants targeted to process up to 100,000 metric tons annually [2][3]. The modular design of their facilities ensures scalability and operational flexibility, positioning Xycle to respond effectively to market demands [3]. Stephanie Kalil, Commercial Vice President at Dow, has emphasized that this investment represents a pivotal step toward transforming waste management practices [3].