Allbirds, H&M and Zara use recycled yarns from this Virginia startup that's backed by Patagonia

The fast fashion industry has long been criticized for its significant environmental impact, characterized by excessive water usage and high levels of carbon emissions and pollution. This has led to an increase in microplastics and textile waste, prompting many consumers to turn to thrift shopping. However, the challenge of recycling old clothing into new garments remains daunting. Globally, the fashion sector contributes between 4% and 10% of greenhouse gas emissions, yet less than 1% of clothing is successfully recycled into new products. A Virginia-based startup, Circ, is addressing this critical issue with a vision to create a circular economy for fashion. Established in 2011, Circ has developed groundbreaking technology capable of separating polycotton materials into their original components, allowing them to be regenerated into high-quality materials suitable for new clothing. Previous attempts at this process often resulted in the degradation of one of the fibers. Circ's CEO, Peter Majeranowski, explains, "It's a chemical process akin to 'unbaking' a cake, where we decompose polyester into its basic building blocks, isolate it from cotton, and reintroduce them into the supply chain to create new garments." Polycotton blends, which account for approximately 77% of the global textile market, can now be effectively recycled using Circ's hydrothermal technology, which works with any blend ratio. "We focus on materials that cannot be thrifted, repaired, or resold," Majeranowski adds. "These items are often destined for landfills or incinerators." Circ sources old clothing through purchases or donations, breaks down the fibers, and then sells these recycled materials back into the clothing supply chain, supplying yarn spinners, dye houses, and fabric manufacturers. Notable brands such as Allbirds, Zara, and H&M are incorporating Circ's recycled textiles into their products. While there is a slight price increase associated with these sustainable options, they are particularly appealing to environmentally conscious companies like Patagonia, which has also invested in Circ. Matthew Dwyer, Patagonia's vice president of global product footprint, emphasizes the importance of sourcing crucial feedstocks like cotton-poly blends. He acknowledges that the higher price point is a natural consequence of scaling innovative solutions to meet market demands. "It's not just about launching products; it's about equipping our partners to scale effectively because saving the planet shouldn't be a mere concept, it should be a viable business model," he states. Having raised $100 million from investors including Patagonia, Temasek, Taranis, Marubeni, Inditex, and Breakthrough Energy Ventures, Circ is headquartered in Danville, Virginia—the former hub of the largest textile mill in the U.S. The startup is now set to expand its operations globally, with its first large-scale textile-to-textile recycling facility opening soon in France.