Pioneering Plastic Recycler Moves Toward Commercial Scale
Menlo Park–based Novoloop, a startup specializing in advanced plastic recycling, has taken a decisive step toward large-scale production. The company has signed an agreement with Huide Science and Technology, a major materials manufacturer, to begin producing its upcycled thermoplastic polyurethane (TPU) at commercial volumes, according to a report from TechCrunch.
This partnership marks a critical milestone for Novoloop as it navigates what many hardware-dependent climate technology firms refer to as the “valley of death” — the difficult phase between proving technical viability and achieving sustainable revenue.
Transforming Hard-to-Recycle Plastics Into High-Value Materials
Under the new deal, Novoloop will supply Huide Science and Technology with a polyol, a key chemical ingredient used to make TPU. What sets Novoloop apart is the source of its polyols: the company upcycles post-consumer polyethylene waste, such as discarded plastic bags — among the most challenging types of plastic to recycle effectively.
Thermoplastic polyurethanes (TPU) are versatile materials used across a wide range of industries, from athletic footwear and automotive parts to medical devices.
“For this product line, we have essentially achieved what would be the commercial relationship,”
— Miranda Wang, Co-founder and CEO, Novoloop
Pilot Success and Growing Demand
Novoloop recently commissioned a demonstration plant in India, which can currently produce tens of tons of polyols per year. Though modest in capacity, the facility allows the company to support “major pilot projects,” according to Wang.
Among these initiatives is a forthcoming project with a footwear manufacturer, set to be announced soon. The company has previously collaborated with Swiss sports brand On, supplying its Lifecycled material for the tread of the Cloudprime sneaker, one of the world’s first performance shoes made with carbon-based materials derived from recycled plastic waste.
Scaling Up: The Path to Profitability
While Novoloop has proven its technology at pilot scale, Wang emphasized that economies of scale remain the greatest challenge ahead.
“The biggest hurdle to profitability is economies of scale,” she said. “A lot of the focus next year will be driving a lot of these customer deals to close so that we can finance the [commercial-scale] facilities.”
The company anticipates that once financing and customer partnerships are finalized, its first commercial production plant will begin operations by early 2028. The new facility is expected to produce enough polyols to create approximately 16,000 tons of TPU annually.
“When we can run the materials at those types of volumes, we expect to be able to be at price parity with virgin TPUs,” Wang added.
A Step Forward for Circular Manufacturing
If successful, Novoloop’s commercial expansion could significantly reduce the cost barrier of using recycled over virgin plastics, setting a new precedent for sustainable materials in manufacturing. As global demand for eco-friendly materials accelerates, partnerships like the one between Novoloop and Huide demonstrate how innovation and collaboration can help bridge the gap between climate solutions and commercial viability.
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