ClimateTech startup Cyclize breaks conventional boundaries and reinvents the chemical industry
Cyclize secures €5 Million in Seed Funding for revolutionary plastic recycling technology
Cyclize, the ClimateTech startup from Stuttgart, is forging ahead with €4.75 million in startup capital to initiate a revolution in the chemical industry – the goal: To replace fossil resources using innovative carbon recycling of plastic waste and CO2. The funding round is led by UVC Partners, with complementary investments from High-Tech Gründerfonds (HTGF), Aurum Impact, UnternehmerTUM Funding for Innovators, and high-profile business angels, including Dr. Klaus Schäfer, former CTO of Covestro, who will also join Cyclize’s Advisory Board.
Full replacement of fossil resources
In an era of overdue change, Cyclize breaks conventional boundaries and reinvents the chemical industry. The industry, once firmly anchored in the use of fossil resources, must and wants to transform to achieve the net-zero emission targets. However, there is an additional challenge: Fossil resources don’t only serve as an energy source. The industries’ products intrinsically contain carbon, which is also derived from oil, natural gas, and coal. It is released when materials are incinerated after disposal. In total, plastics thus account for 15 percent of industrial CO2 pollution. A typical building block for plastics, foams, adhesives, paints, and more is synthesis gas, a carbon monoxide and hydrogen mixture. So far, alternative technologies like electrolysis or mitigation strategies like carbon capture and storage (CCS) struggle to meet the growing demand for CO2-neutral synthesis gas.
Cyclize offers a solution: A highly innovative plasma-based process that recycles mixed plastic waste of all kinds to produce synthetic gas, economically competing with fossil synthesis gas. Cyclize sets groundbreaking standards to replace fossil resources unrivaled. "With our process, we send a significant signal for climate-neutral chemistry. Our patented Cyclize Process enables chemical companies to remain competitive despite rising energy costs in Europe. Cyclize Plasma is not just the future of the chemical industry – it is an enabler for the circular economy: Turning plastic waste into a valuable raw material with monetary value", Maike Lambarth, co-founder and CEO of Cyclize.
Venturing into new markets: the net-zero revolution
The shift towards net-zero production opens new markets in Europe. Cyclize lays the foundation for the chemical industry through a low-threshold transformation. The company only replaces the first step of an extended value chain by offering synthesis gas that can substitute fossil sources. By retaining most of the value chain, existing process plants can continue to be used while keeping production costs low.
"With their solution, they not only serve numerous chemistry segments that were previously dependent on fossil hydrogen and synthesis gas but also solve the global problem of recycling previously non-recyclable plastic waste. Cyclize is an innovation pioneer that decisively addresses the global challenges of our time", Dr. Klaus Schäfer.
Competitiveness through defossilization
Chemical companies cannot defossilize their industry using existing technologies while remaining economically viable. "Cyclize not only provides an affordable and clean alternative for chemical companies that previously relied on fossil natural gas as a raw material, but also solves the global problem of plastic waste that previously could not be recycled. A win-win, especially for the German industry and our environment", Johannes Weber, Senior Investment Manager at High-Tech Gründerfonds.
Further development of plasma technology and company
Cyclize has already attracted significant interest from industry and politics. Since May 2022, the spin-off from the University of Stuttgart has been supported by the EXIST Research Transfer program of the Federal Ministry for Economic Affairs and Climate Action (BMWK). With the capital raised in the seed round, the company elevates its implementation to the next level. Next, Cyclize will focus on scaling the technology and its application on an industrial scale with an expanded team. Also, test series with pilot customers who need synthesis gas or want to recycle complex waste streams are already planned. Thus, the young company actively advances technological development towards commercialization. Next milestone: Construction and operation of the first waste-to-synthesis gas plant of its kind in a chemical park to demonstrate applicability in the industrial environment.
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