Dow has announced today its equity investment in Xycle, a pioneering company in advanced (also referred to as chemical) recycling technology based in Rotterdam. Joining forces with investors ING, Invest-NL, Polestar Capital, and Vopak, this partnership signifies a key step in Dow's commitment to convert plastic waste into valuable materials and to enhance a circular economy for plastics by broadening access to circular feedstock.

Source: MarketScreener

The combined funds, which include both equity investments and senior debt, will facilitate the construction of Xycle's first commercial-scale advanced recycling facility, strategically situated in the Port of Rotterdam. This plant is projected to be fully operational by the fourth quarter of 2026, with an anticipated processing capacity of 21 kilotons of plastic waste annually (kta). Dow will act as an off-taker for the circular feedstock produced, utilizing it to create new circular plastics that are increasingly in demand from global brands and customers.

Xycle's advanced recycling technology employs low-temperature pyrolysis to effectively decompose challenging-to-recycle plastic waste into pyrolysis oil, enhancing the liquid fraction available for use as cracker feedstock in new plastic production. This circular feedstock can be utilized to produce virgin-quality plastics for high-value applications, including food-grade packaging and components for medical and automotive purposes.

The modular design of Xycle's facilities enables production to adjust according to demand, ensuring operational flexibility and efficiency. Looking ahead, Xycle aims to establish more advanced recycling facilities worldwide, employing larger reactor sizes to boost the capacity of individual plants to 100 kta.

Dow's investment in Xycle is part of a comprehensive portfolio of technologies aimed at converting plastic waste and other alternative feedstocks into 3 million metric tons of circular and renewable solutions each year. This advanced recycling process complements the mechanical recycling solutions that Dow is enhancing and allows for a diverse range of plastic waste to be transformed back into virgin-quality circular materials. Xycle's technology is capable of processing mixed plastic waste that is currently not amenable to mechanical recycling, which often leads to landfill disposal or incineration.

Both Dow and Xycle are dedicated to promoting innovative recycling solutions that foster a circular economy for plastics. This investment exemplifies Dow's collaborative approach with expert partners to create ecosystems that collect, reuse, or recycle waste in response to the increasing demands of customers.