Novoloop is making tons of upcycled plastic
Plastic pollution remains a significant global challenge, with an alarming statistic revealing that only about 9% of plastic waste gets recycled. A substantial portion of this comes from single-use items, posing a dual problem: design for disposal and technological hurdles in recycling. Conventional methods often yield materials of lesser quality, making the process less appealing for broader adoption.
Enter Novoloop, a California-based startup, which claims a breakthrough solution. The company has engineered a novel method to transform notoriously difficult-to-recycle plastics into high-demand materials that industries are eager to acquire. This innovative approach promises to disrupt the current recycling landscape.
Novoloop recently concluded a successful test run of its demonstration plant, which continuously upcycles waste plastic. This facility is capable of producing thermoplastic polyurethane (TPU) at a rate of up to 70 metric tons annually. This versatile material can be integrated into a wide range of products, from athletic footwear to automotive seating. The demand for Novoloop’s upcycled TPU has been exceptionally strong, prompting the company to accelerate plans for a larger, commercial-scale facility.
“We’re sold out. Literally every time we make something, we’re sold out,” stated Miranda Wang, co-founder and CEO of Novoloop, in an exclusive interview. This robust market interest underscores the effectiveness and potential of Novoloop’s technology.
Following this impressive production run, Novoloop has successfully closed a $21 million Series B funding round. This crucial investment will fund the final design and initial construction phases of their first commercial-scale plant. The round was spearheaded by Taranis, an investment fund under the oil-and-gas conglomerate Perenco, with notable participation from Valo Ventures and Shop Limited.
While a specific location for the commercial plant has not yet been finalized, Novoloop is exploring partnerships with existing chemical plants that possess available land and utilities. This collaborative approach could see the partner company managing the facility’s operations, with Novoloop providing its patented process and market expertise. This strategy offers mutual benefits, allowing established companies to tap into new growth opportunities without needing to develop entirely new market segments.
This Series B funding builds on Novoloop’s previous success, including a $21 million Series A round. The earlier investment significantly refined their process, leading to a notable collaboration with running shoe manufacturer On, which incorporated Novoloop’s upcycled material into the tread of its Cloudprime sneaker.
Novoloop’s proprietary material, branded as Lifecycled TPU, is created by deconstructing polyethylene plastic into its fundamental building blocks, or monomers. These monomers are then re-synthesized into new, higher-value polymers. While the resulting Lifecycled TPU is currently more expensive than virgin material, Wang confirms it remains “within range” for commercial viability, especially considering its sustainable origins.
The company’s proficiency with TPU has also opened a secondary business avenue: mechanically recycling TPU scraps from factory floors. By incorporating “performance enhancers,” Novoloop can elevate the quality of these mechanically recycled materials to closely mimic that of virgin polymers, further expanding its impact on waste reduction.
The decision to construct the demonstration plant in India was strategically driven by cost and logistical advantages. Novoloop identified Aether Industries in India as a partner that possessed not just a pilot plant, but “a plant of pilots,” as Wang described it. Aether’s extensive experience with small-scale chemical manufacturing and its capacity to repurpose equipment from dismantled pilot projects meant that building and operating Novoloop’s facility in India would be significantly more cost-effective—up to ten times less—compared to establishing a similar facility in the U.S. This access to specialized infrastructure and cost efficiencies highlights a unique global advantage for sustainable manufacturing innovation.
