Novoloop’s upcycled plastic takes a step closer to production

TechCrunch has exclusively learned that plastics recycling startup Novoloop has inked a deal with a major manufacturer to produce its upcycled thermoplastic polyurethane on a commercial scale.

The deal helps Menlo Park-based Novoloop overcome the so-called “valley of death” that many climate technology startups have to go through.

Hardware-reliant startups are especially susceptible to stumbling into the valley, that fateful moment when they have proven their initial technology and have not generated enough revenue from selling their product.

Under the terms of the deal, Novoloop will supply Hude Science & Technology with chemical building blocks used to make thermoplastic polyurethane. Novoloop makes a material called polyol from post-consumer polyethylene waste such as plastic bags, one of the most difficult materials to recycle.

Thermoplastic polyurethanes, or TPU, are a type of plastic used in everything from running shoes to medical devices.

“For this product line, we have essentially secured what will be a commercial relationship,” Novoloop co-founder and CEO Miranda Wang told TechCrunch.

At this point, Wang said, Novoloop is constrained in its ability to supply polyols. Earlier this year in India, the startup commissioned its demonstration plant, capable of producing tens of tons of material per year.

The demonstration plant’s capacity is enough to produce enough TPU for “major pilot projects,” including one for a footwear customer that will be announced in the coming months, Wang said. Previously, Novoloop supplied Swiss shoe manufacturer On with lifecycle materials for its CloudPrime sneaker treads.

The deal with Huide will be critical to Novoloop’s progress, Wang said. “The biggest obstacle to profitability is economies of scale,” he said. “A lot of the focus next year will be on closing these customer deals so that we can finance [commercial-scale] facilities.”

Wang said that once the deal and financing are in place, Novoloop expects its commercial plant to be operational in early 2028. The first version should be able to supply enough polyols to produce approximately 16,000 tons of TPU annually.

“When we can run materials in those kinds of volumes, we expect to be able to have price parity with virgin TPU,” she said.