Novoloop Advances Toward Upcycled Plastic Production

Novoloop, a startup focused on plastic recycling, has announced a partnership with a prominent manufacturer for the large-scale production of its upcycled thermoplastic polyurethane, as exclusively reported by TechCrunch.

This collaboration enables the Menlo Park-based Novoloop to move beyond the notoriously challenging “valley of death” that many climate tech startups face.

Startups dependent on hardware commonly find this phase difficult, as they have validated their initial technology but struggle to generate sufficient revenue from their offerings.

Under this agreement, Novoloop will supply Huide Science and Technology with a vital chemical building block required for manufacturing thermoplastic polyurethane. This material, known as polyol, is made from recycled post-consumer polyethylene waste, including hard-to-recycle products such as plastic bags.

Thermoplastic polyurethanes (TPU) are adaptable plastics used in various products, ranging from athletic footwear to medical devices.

“For this product line, we have effectively forged what can be termed a commercial relationship,” remarked Miranda Wang, Novoloop’s co-founder and CEO, in a conversation with TechCrunch.

Currently, Novoloop is experiencing limitations in its polyol supply, noted Wang. Earlier this year, the startup inaugurated its demonstration plant in India, which has the capacity to produce several tons of the material each year.

The plant’s production capacity is adequate for generating sufficient TPU for “major pilot projects,” including one for a footwear client that will be announced shortly. Previously, Novoloop provided its Lifecycled material for the tread of the Cloudprime sneaker produced by Swiss company On.

Partnerships such as the one with Huide are essential for Novoloop’s progression, according to Wang. “The main roadblock to profitability is achieving economies of scale,” she explained. “In the coming year, we will heavily focus on finalizing customer agreements to fund our [commercial-scale] facilities.”

Once financing and agreements are secured, Novoloop expects to have its commercial plant operational by early 2028, as indicated by Wang. The initial setup is projected to produce enough polyol for around 16,000 tons of TPU annually.

“When we reach those production levels, we anticipate achieving price parity with virgin TPUs,” she concluded.