Novoloop had previously secured a $21 million Series A funding, enabling the company to refine its process to the extent that running shoe manufacturer On utilized its upcycled material for the tread of its Cloudprime sneaker.
Wang remarked, “That is an environment we don’t have here.”
Novoloop claims to have devised a solution to transform these problematic plastics into valuable products that other companies are eager to purchase.
Although the precise location for the commercial scale plant is yet to be determined, Novoloop aims to set it up alongside an existing chemical plant with surplus land and utilities. The collaborating company would operate the facility, with Novoloop providing the necessary technology and marketing expertise.
Novoloop’s upcycled material, dubbed Lifecycled TPU (thermoplastic polyurethane), is crafted by disassembling polyethylene plastic into its fundamental components known as monomers. Subsequently, it synthesizes new polymers of higher value than the initial polyethylene. Although the resulting material is pricier than virgin material, it falls within an acceptable price range, as Wang mentioned.
When deciding on the location for the demonstration plant, Novoloop initially contemplated constructing the facility in the U.S. However, they ultimately selected India, where Aether Industries not only had a pilot plant but “a plant of pilots,” as Wang described it. Aether’s proficiency in small-scale chemical manufacturing plants, coupled with its capability to repurpose equipment from decommissioned pilots, means that setting up and operating Novoloop’s plant would cost a fraction of what would be incurred by constructing a comparable facility in the U.S.
Plastic faces a challenging recycling scenario. Merely 9% of plastic is recycled, with a significant portion of this waste stemming from single-use items like plastic bags. The issue is multifaceted: a design flaw in the disposability of these items and a technological challenge in recycling them effectively, resulting in subpar outcomes.
Following the successful demonstration run, Novoloop secured a $21 million Series B funding to finalize the design of its inaugural commercial scale plant and commence construction. The funding round was spearheaded by Taranis, a venture fund under the ownership of oil-and-gas firm Perenco, along with contributions from Valo Ventures and Shop Limited.
The California-based startup recently concluded a trial run of its demonstration plant, which continuously upcycles waste plastic. This plant can produce thermoplastic polyurethane (TPU) up to 70 metric tons per year, suitable for various applications such as footwear and car seats. The high demand for their product has led the company to contemplate plans for a larger facility.
Miranda Wang, co-founder and CEO of Novoloop, shared with TechCrunch, “We’re sold out. Literally every time we make something, we’re sold out.”
Furthermore, Novoloop’s expertise in TPU prompted the company to venture into another business line: mechanically recycling TPU scraps from factory floors and enhancing their performance to match that of virgin material.
