June 27, 2025 – Novoloop Secures $21M to Scale Revolutionary Plastic Upcycling Technology
San Francisco – Novoloop, the California-based chemical recycling pioneer, has closed a $21 million Series B funding round led by climate infrastructure investor Taranis. The investment will accelerate commercialization of its patented Lifecycling™ technology that transforms polyethylene waste into premium thermoplastic polyurethane (TPU) materials.
Breakthrough Technology Redefines Plastic Recycling
Novoloop’s proprietary ATOD™ (Accelerated Thermal Oxidative Decomposition) process represents a quantum leap in plastic circularity. Unlike conventional mechanical recycling that downgrades material quality, this innovative method chemically upcycles polyethylene packaging waste into high-value diacid monomers – the building blocks for performance TPU.
“While traditional recycling struggles with energy-intensive processes and limited applications, our technology delivers virgin-grade TPU with 67% lower carbon footprint,” said Novoloop CTO Dr. Jennifer Luo. The company’s India pilot plant has already demonstrated continuous production capabilities, achieving 92% yield efficiency.
Strategic Partnerships Driving Commercial Adoption
• Chinese polyurethane giant Wanhua Chemical collaborating on industrial-scale production
• Swiss athletic brand On’s Cloudprime shoe soles (35% recycled content) outperform petroleum-based alternatives
• Multiple Fortune 500 companies evaluating material samples for automotive and electronics applications
The funding milestone follows Novoloop’s successful showcase at CHINAPLAS 2025, where it debuted chemically recycled TPU samples meeting stringent industry specifications. With 50+ patents across 18 jurisdictions, the company is positioned to capitalize on growing demand for sustainable materials.
Market Potential and Industry Impact
- Addresses critical gap in polyethylene recycling (currently <4% recycled globally)
- Creates high-margin applications from low-value waste streams
- Meets brand sustainability commitments and impending regulatory mandates
“Novoloop isn’t just recycling plastic – they’re reinventing its economic value proposition,” commented Taranis partner Mark Williams. “This technology could displace 20% of virgin TPU production in key markets by 2030.”
AsiaMB Insight: The development holds particular significance for color masterbatch formulators, as Novoloop’s process maintains consistent coloration capabilities – a historic challenge for recycled polymers. As chemical recycling gains traction, expect increased R&D focus on compatible pigment systems for upcycled materials.
Novoloop plans to deploy the new capital toward:
✓ Expanding Asian manufacturing partnerships
✓ Developing next-gen monomers for nylon applications
✓ Obtaining ISCC PLUS certification for mass balance accounting
Industry analysts project the advanced recycling market could reach $15 billion by 2028, with polyolefin upcycling technologies like Novoloop’s capturing 30% of that value. The company’s progress signals a paradigm shift from waste management to material regeneration in the plastics value chain.