Dow Invests in Xycle to Transform Plastic Waste into Valuable Resources by 2026

On March 10, 2025, Dow announced a strategic investment in Xycle, a pioneer in advanced chemical recycling technology based in Rotterdam, Netherlands. This collaboration also involves investors such as ING, Invest-NL, Polestar Capital, and Vopak. This move underscores Dow's ongoing commitment to converting plastic waste into high-value materials, marking a significant milestone in accelerating the circular economy for plastics.

The collective fund, made up of equity investments and preferred debt, will support Xycle in strategically building its first commercial-scale recycling facility at the Port of Rotterdam. The plant is expected to be fully operational by the fourth quarter of 2026, with an annual capacity to process 21,000 tons of plastic waste. Dow will act as a purchaser of the recycled materials produced, utilizing them to manufacture new circular plastics that are in high demand among global customers and brands.

Xycle's advanced recycling technology effectively breaks down hard-to-recycle plastic waste into pyrolysis oil through low-temperature pyrolysis, increasing the liquid portion available as feedstock for new plastic production. This circular material can be used to produce original quality plastics for high-value applications, including food-grade packaging, medical supplies, and automotive parts.

Stephanie Kalil, Vice President of Packaging and Specialty Plastics for Europe, the Middle East, and Africa at Dow, stated, "We are excited to announce this strategic investment in Xycle, representing a critical step toward our goal of waste conversion. The performance and efficiency of Xycle's technology complement our increasingly diverse global recycling solutions portfolio. We believe that the strong financial backing and credibility of our alliance partners indicate the opportunity to expand advanced recycling technologies to address the challenges of plastic waste and meet the growing demand for circular products."

The modular design of Xycle's facility allows for scalable production based on demand, ensuring operational flexibility and efficiency. In the future, Xycle plans to develop more advanced recycling facilities globally, aiming to increase single-plant capacity to 100,000 tons per year by utilizing larger reactor sizes.

Arnd Thomas, CEO of Xycle, commented, "The investment from Dow and our other partners in Xycle's first commercial facility marks an important step in developing and scaling our innovative pyrolysis technology, which has proven to provide first-class yields for feedstock. Working closely with Dow will ensure we can leverage their expertise in developing high-quality circular materials, allowing us to expand our unique technology and accelerate the transition to a plastic circular economy."

Dow's investment in Xycle is part of a broader technological portfolio aimed at converting 3 million tons of plastic waste and other alternative feedstocks into circular and renewable solutions annually. As a complementary process to Dow's accelerated mechanical recycling solutions, Xycle's advanced chemical recycling process can transform various plastic waste back into original quality circular materials. Xycle's technology is capable of processing mixed plastic waste that is currently non-mechanically recyclable, which would otherwise be sent to landfills or incinerated.

Together, Dow and Xycle are committed to advancing innovative recycling solutions to create a circular economy for plastics. This investment exemplifies how Dow collaborates with specialized partners to build an ecosystem for collecting, reusing, or recycling waste to meet the growing customer demand.