Novoloop’s upcycled plastic takes a step closer to production

Novoloop, a startup focused on plastic recycling, has secured a significant partnership with a leading manufacturer to enable the commercial production of its innovative upcycled thermoplastic polyurethane (TPU). This agreement marks a crucial step for the Menlo Park-based company as it navigates the challenging phase often referred to as the 'valley of death'—a period where many climate-focused startups struggle after demonstrating their technology but before achieving profitable sales. Under the new deal, Novoloop will provide Huide Science and Technology with a key chemical component used in the creation of thermoplastic polyurethane. Remarkably, Novoloop produces this component, known as a polyol, from post-consumer polyethylene waste, particularly from items like plastic bags, which are notoriously difficult to recycle. Thermoplastic polyurethanes find applications in a wide range of products, including athletic footwear and medical equipment. According to Miranda Wang, co-founder and CEO of Novoloop, the company has effectively established a commercial relationship for this product line. However, she noted that Novoloop is currently limited in its production capacity for polyols. Earlier this year, Novoloop launched a demonstration plant in India with the capability to produce several tons of polyols annually, sufficient for major pilot initiatives. Wang indicated that one such project, aimed at a footwear client, will be revealed soon. Previously, Novoloop collaborated with Swiss company On, supplying them with its Lifecycled material for the tread of the Cloudprime sneaker. Wang emphasized that partnerships like the one with Huide are essential for Novoloop's growth. "The biggest hurdle to profitability is economies of scale," she explained. Looking ahead, the company aims to finalize multiple customer agreements to secure financing for its commercial-scale facilities. Once these deals are in place, Novoloop anticipates having its commercial plant operational by early 2028, with the initial capacity to produce around 16,000 tons of TPU each year. Wang expressed optimism that achieving such production volumes would allow Novoloop to compete on price with traditional virgin TPUs.