Novoloop is making tons of upcycled plastic

The global plastic recycling crisis has reached alarming levels, with a mere 9% of plastic actually being recycled. This issue is exacerbated by the prevalence of single-use items, like plastic grocery bags, which are designed for disposal rather than recycling. Addressing these challenges, California-based startup Novoloop has emerged with a groundbreaking solution that transforms problematic plastics into valuable materials that other companies are eager to purchase. Recently, Novoloop successfully completed a trial run at its demonstration plant, which specializes in the continuous upcycling of waste plastic. This innovative facility has the capacity to produce up to 70 metric tons of thermoplastic polyurethane (TPU) annually, a versatile material that can be utilized in a range of products, from athletic shoes to automotive interiors. Demand for its upcycled products has surged, prompting the company to strategize the development of a larger production site. "We’re sold out. Literally every time we make something, we’re sold out," shared Miranda Wang, co-founder and CEO of Novoloop, in an exclusive interview with TechCrunch. Following the success of its demo production, the startup has secured $21 million in Series B funding aimed at finalizing the design of its first commercial-scale facility and initiating construction. This funding round, led by Taranis—an investment fund linked to oil-and-gas company Perenco—also saw participation from Valo Ventures and Shop Limited. While Novoloop has yet to finalize a location for its larger plant, it is exploring opportunities to operate alongside an existing chemical plant that can provide necessary land and utilities. This collaboration could enable the partner company to manage the facility while Novoloop contributes its expertise in process and marketing. "Sometimes it’s hard for them to come across growth opportunities," Wang noted. "This is a way for them to access that growth opportunity while not having to learn a totally different market that they have to sell things into because we’re taking care of marketing and sales and the technology." Previously, Novoloop raised $21 million in a Series A round, which helped refine its upcycling process to such an extent that shoe manufacturer On incorporated its material into the tread of its Cloudprime sneaker. The company’s upcycled material, branded as Lifecycled TPU, is created by breaking down polyethylene plastic into fundamental building blocks known as monomers, which are then used to synthesize new, more valuable polymers. Although this upcycled material is pricier than virgin plastic, Wang assures that it remains "within range." Additionally, Novoloop has expanded its operations to include the mechanical recycling of TPU scraps from manufacturing floors, enhancing their performance to rival that of virgin materials. Initially considering construction options in the U.S., Novoloop ultimately opted for India, where Aether Industries had not only established a pilot plant but also a range of small-scale chemical manufacturing facilities. Wang highlighted that Aether’s expertise and ability to repurpose equipment from decommissioned pilots would allow Novoloop to build and operate its plant at a cost significantly lower than what would be incurred in the U.S., emphasizing that such an environment is currently unavailable domestically.