MacroCycle Raises $6.5M To Revolutionize Plastic Recycling

Cambridge-based cleantech startup MacroCycle Technologies has closed its seed funding round at $6.5 million, which it will use to commercialize the innovative and energy-efficient solution to upcycle plastic waste. This groundbreaking approach will help the company address the global plastic crisis by transforming discarded plastics into high-quality virgin-grade materials, thus providing a viable alternative to fossil fuel-derived plastics.

Funding is coming from Clean Energy Ventures and Volta Circle, while further participation comes from KDT Ventures and Neotribe Ventures. The fund will accelerate the scaling of operations by 50% for MacroCycle as the company expands pilot plant facilities that will be utilized in producing upcycled PET (Polyethylene terephthalate) and polyester resin for cosmetics, textiles, home goods, fashion, and food and beverage sectors.

Founded in 2023 by CEO Stwart Peña Feliz and CTO Jan-Georg Rosenboom, MacroCycle is pioneering a new chemical recycling process that employs the synthesis of cyclic macromolecules (macrocycles) and selective non-toxic reagents. The novel approach to recycling contaminated plastic waste is significantly less complex and therefore less expensive, which was previously a significant stumbling block. In comparison to other traditional recycling methods that are both energy-intensive and expensive, MacroCycle utilizes 80 percent less energy than fossil-based PET production while holding a 50% to 75% reduction in capital expenditure compared to any other chemical or biologic recycling method.

Speaking about the company's mission and technology, CEO Stwart Peña Feliz emphasized the economic and environmental potential of their solution. "There is a $700 billion linear plastics market opportunity, but today's advanced recycling technologies are too expensive to build and operate, and still yield low-value products. MacroCycle's technology provides a more efficient process to produce high-quality plastic that can be adopted as a drop-in solution competitive with fossil fuel-based plastic.". Our technology is going to unlock the economic benefit of recycling by allowing our customers and suppliers, and that will be a huge enabler in plastic circularity.

The crisis of plastic across the globe has been mounting over the years with plastic production and disposal accounting for more than 5% of global CO2 emissions. Only 15% of plastics are recycled today. The rest remain in landfills, waterways, or incinerated. The recycling landscape has significant challenges such as contamination of waste streams and the high energy requirements of current recycling technologies. MacroCycle offers a promising solution by overcoming the obstacles it creates with its low-energy and low-cost upcycling method.

Clean Energy Ventures Managing Partner Temple Fennell stated that there was an urgent need to come up with innovative solutions to the plastic waste problem. "Global plastic waste is projected to triple over the next 40 years, and current mechanical and chemical recycling methods are unable to deliver commercially viable solutions to process plastics and textiles waste streams. MacroCycle's solution to upcycle plastics addresses an increasingly severe waste problem to create an economically and environmentally circular plastics supply chain.

Bottles and garments will be some of the main applications for MacroCycle's recycled PET resin, with the company's pilot plant to deliver products made entirely from its upcycled materials. This development is in line with the increasing demand for sustainable and circular solutions in various industries, as companies increasingly seek to reduce their environmental impact and meet consumer expectations for eco-friendly products.

With its competitive drop-in solution against fossil-based plastics, MacroCycle's technology has the potential to greatly reduce virgin plastic production. In fact, its approach not only makes recycling more economically viable but also contributes to creating a circular plastics economy in which materials are continually reused instead of being thrown away.

The recent injection of capital sets MacroCycle off on a proper course and enables it to expand the capacity of its operations in meeting greater demands for sustainable alternatives against plastic. Expanding its abilities and developing pilot plant facilities, the company looks forward to being the key player in fighting plastic pollution and achieving important positions in the circular economy movement.