Dow Invests in Advanced Recycling Firm Xycle to Boost Circular Plastics

Dow has announced an investment in Xycle, a recycling company based in Rotterdam, alongside ING, Invest-NL, Polestar Capital, and Vopak. This move supports Dow’s goal of increasing access to circular raw materials and advancing plastic recycling.

The investment will help build Xycle’s first large-scale recycling plant in the Port of Rotterdam. The facility, expected to be operational by the fourth quarter of 2026, will process 21 kilotons of plastic waste each year. Dow will purchase recycled raw materials from the plant to produce new circular plastics, meeting the rising global demand for sustainable products.

Xycle’s technology uses a process called low-temperature pyrolysis to convert hard-to-recycle plastic waste into pyrolysis oil. This oil can then be used to produce high-quality plastics suitable for food packaging, medical applications, and the automotive industry.

Stephanie Kalil, Commercial Vice President of Dow Packaging & Specialty Plastics EMEA, said: “We are thrilled to announce this strategic investment in Xycle which marks another pivotal step towards our goal to transform the waste. The performance and efficiency of Xycle’s technology strongly complements our increasingly diverse global portfolio of recycling solutions. We believe that the robust financial backing and credibility of our consortium partners demonstrates the strength of the opportunity at hand to scale advanced recycling technologies; to address the plastic waste challenge and meet growing customer demand for circular products.”

Xycle’s modular facility design allows for flexible production, with the ability to adjust capacity based on demand. In the future, the company aims to expand internationally with larger reactors that could process up to 100 kilotons of plastic waste annually.

Arnd Thomas, Chief Executive Officer of Xycle Holding, commented: “Dow’s investment – alongside our other partners - in Xycle’s first commercial facility marks a significant step in developing and expanding our innovative pyrolysis-based technology, which has been shown to deliver best-in-class yield for cracker feedstock. Working closely with Dow will ensure we can leverage their expertise in developing high-quality circular materials, enabling us to scale our unique technology and accelerate the transition to a circular economy for plastics.”

Dow aims to convert plastic waste and other alternative materials into three million metric tons of circular and renewable products each year. The company sees advanced recycling as a complement to traditional mechanical recycling, as it allows mixed plastic waste that would otherwise be incinerated or sent to landfill to be turned into new plastics.

By working together, Dow and Xycle hope to develop new recycling solutions that support a circular economy for plastics. This investment is part of Dow’s wider strategy to build partnerships that enhance waste collection and recycling systems, meeting the increasing demand for sustainable products.

Source: Dow