Dow has announced a strategic equity investment in Xycle, a Rotterdam-based pioneer in advanced recycling technology. This move, backed by investors ING, Invest-NL, Polestar Capital, and Vopak, reinforces Dow’s commitment to transforming plastic waste into high-value materials while expanding access to circular feedstocks.

The investment will support the construction of Xycle's first commercial-scale advanced recycling plant, strategically positioned in the Port of Rotterdam. The facility, set to become operational by Q4 2026, is expected to process 21 kilotons of plastic waste annually. Dow will purchase the circular feedstock produced at this plant to manufacture new circular plastics, meeting growing demand from global brands seeking sustainable solutions.

Xycle’s advanced recycling process leverages low-temperature pyrolysis to efficiently break down hard-to-recycle plastic waste into pyrolysis oil. This oil serves as a valuable liquid feedstock for producing virgin-quality plastics suited for food-grade packaging, medical products, and automotive components.

"This strategic investment in Xycle is a crucial step toward our goal of transforming plastic waste," said Stephanie Kalil, Commercial Vice President, Dow Packaging & Specialty Plastics EMEA. "Xycle’s innovative technology complements our diverse recycling portfolio, and the strong financial support from our consortium partners underscores the potential to scale advanced recycling solutions. This partnership will help address plastic waste challenges and meet rising demand for circular products."

Xycle’s modular facility design offers flexibility to scale production based on market demand, ensuring efficient operations. Looking ahead, Xycle plans to expand globally with larger reactors that will boost single-plant capacity to 100 kilotons annually.

Arnd Thomas, CEO of Xycle Holding, emphasized the significance of Dow’s investment in supporting Xycle’s growth. "Partnering with Dow is a major milestone for our first commercial facility and will help us expand our pyrolysis-based technology, which delivers excellent yields for cracker feedstock. Dow’s expertise in circular material development will enable us to scale our technology and accelerate the transition to a circular economy for plastics."

Dow’s investment in Xycle aligns with its broader strategy to convert plastic waste and alternative feedstocks into 3 million metric tons of circular and renewable solutions annually. While mechanical recycling remains a key focus for Dow, Xycle’s advanced recycling technology complements this approach by processing mixed plastic waste that would otherwise end up in landfills or incineration.

This collaboration highlights Dow’s proactive efforts to build sustainable ecosystems by working with partners like Xycle to improve waste collection, recycling, and reuse. By scaling innovative recycling technologies, Dow continues to advance its mission to drive a circular economy for plastics and deliver sustainable solutions to meet customer demands.