Feedstock
One of the big sticking points when scaling any type of textile-to-textile recycling is the security of the incoming feedstock, which going forward is likely to become more valuable due to increased competition as these markets develop.
There is no infinite source of high-quality used textiles needed for making high-quality, virgin-grade synthetic fibres. And in developed recycling markets in the US and Europe, some fibre suppliers have already got robust supply networks in place making it harder for new entrants to break in.
Series A funding led by founding investor TPG Rise Climate with additional investment from H&M Group as well as:
- Giant Ventures – backs purpose-driven founders involved in climate and health to inclusive capitalism.
- IMAS Foundation – sister foundation to INGKA Foundation, the owner of Ingka Group, which owns and operates the majority of IKEA stores globally.
- Norrsken VC – early-stage impact investor, with $450+ AUM and 50+ portfolio companies.
- Volvo Cars – founded in 1927 and aiming to become a fully electric car maker by 2030 and achieve net-zero greenhouse gas emissions by 2040.
“So we have been already working on this across the three main regions from day one, so in Asia we are mapping and selecting partners, and also in Europe and the Americas, because getting the right quality feedstock is so important,” said Nobelius.
He went on to add that the sheer scale of the raw material feedstock Syre will require could prove to be a big advantage when it comes to negotiations with potential supply partners. It’s hoped, large volumes of reliable business will grab their attention.
“Typically, when we’ve talked to a number of potential partners, they tell us they normally get queries for a couple of thousand metric tonnes, but then we come and say: ‘how about 250,000 metric tonnes?’, and they go wow! It’s a different scale altogether,” he told Ecotextile News.
Because Syre is majoring initially on making recycled polyester yarns from clothing with its technology, the company thinks it’s in a more advantageous position than cellulosic-based Renewcell before its well-documented failure – and subsequent revival. Representing more than 60% of total textile fibre consumption, polyester ‘waste’ comes from much more than just apparel and gives Syre a wider feedstock pool from used products in the automotive sector where polyester is used in seat coverings, headliners and airbags, and the home interiors market where it’s found in soft furnishings.
Nobelius confirms Syre is now also in talks with “several major global brands” to negotiate offtake agreements similar to the one it has already secured with H&M and it’s already talking to flat-pack furniture company Ikea as increasing numbers of brands and retailers scramble to meet both new regulation their own publicly stated environmental goals around recycling and circularity.
Let’s hope that this time, they are all in the game for the long run and that solid offtake agreements will mean a solid take-off for textile-to-textile recycling in our industry.
