Plastic waste is one of the world’s most persistent environmental challenges. Although recycling has long been touted as a solution, only about 9% of plastic actually gets recycled, and most of it comes from single-use items like grocery bags and packaging. The issue lies not only in design — these products are often meant to be disposable — but also in the limitations of current recycling technologies, particularly for thin films and low-grade plastics.
A New Solution: Upcycling With Purpose
Enter Novoloop, a California-based startup determined to revolutionize how we handle plastic waste. The company claims it has developed a technologically advanced method for upcycling hard-to-recycle plastics into high-performance thermoplastic polyurethane (TPU) — a material used in a wide range of products, from sneakers to car seats.
Recently, Novoloop successfully completed a test run of its demonstration plant, capable of producing up to 70 metric tons of TPU annually. According to co-founder and CEO Miranda Wang, demand has already exceeded expectations:
“We’re sold out. Literally every time we make something, we’re sold out.”
Scaling Up: From Demo Plant to Commercial Production
Riding on the momentum of its initial production, Novoloop secured a $21 million Series B funding round led by Taranis, a fund backed by oil-and-gas company Perenco, with additional support from Valo Ventures and Shop Limited. The funding will be used to finalize the design and initiate construction of its first commercial-scale plant.
While a location hasn’t been selected yet, Novoloop is exploring partnerships with existing chemical plants that have surplus land and utilities. In such a model, the partner would own and operate the facility, while Novoloop would provide the upcycling process and handle marketing and sales.
“This is a way for them to access that growth opportunity… because we’re taking care of marketing and sales and the technology,” said Wang.
The Lifecycled TPU Advantage
The company’s proprietary upcycled material, dubbed Lifecycled TPU, is produced by breaking down polyethylene plastics into monomers and synthesizing them into new, more valuable polymers. Although the final product is slightly more expensive than virgin TPU, it remains “within range,” making it viable for commercial use.
The process has already proven itself in the market: On, the Swiss running shoe brand, used Lifecycled TPU in the tread of its Cloudprime sneakers.
A New Business Line: Mechanical Recycling
Novoloop is also branching into mechanical recycling of TPU scraps from factory floors. By adding proprietary performance enhancers, the company can bring recycled TPU’s properties closer to those of virgin materials, opening another lucrative business vertical.
Why India? A Strategic Move for Manufacturing
Though Novoloop initially considered building its demonstration plant in the U.S., it ultimately chose India — and specifically, Aether Industries — for cost efficiency and specialized expertise.
“They have a plant of just a whole bunch of pilots,” Wang noted.
India’s small-scale chemical manufacturing infrastructure, along with Aether’s ability to repurpose equipment, made the build 10 times more cost-effective compared to the U.S.
“That is an environment we don’t have here,” said Wang.
