Stuttgart-based Cyclize, a startup focused on replacing fossil feedstock with plastic waste and CO2 to enable industrial defossilization and a circular carbon economy, has raised €4.75M in funding led by Munich-based VC firm UVC Partners.
Investors including High-Tech Gründerfonds, Aurum Impact, and UnternehmerTUM Funding for Innovators, as well as business angel Dr Klaus Schäfer, former CTO of Covestro, also participated in this round.
According to lead investor Amanda Birkenholz, existing technologies hinder economic viability in the defossilization of chemical companies.
Birkenholz says, “Cyclize’s technology solves two problems of our civilization. Currently, only nine per cent of globally produced plastic is recycled. The remainder is not further utilized and ends up in continuously growing landfills.”
“However, the energy contained therein can be significantly used by Cyclize for the reforming process, simultaneously reducing electricity demand and operational costs significantly. Especially considering the current energy price policy, companies can secure a decisive advantage with Cyclize, utilising a resource that has been scarcely used so far.”
Full replacement of fossil resources
Cyclize aims to revolutionise the chemical industry by addressing the challenge of carbon emissions embedded in products. Focused on a circular carbon economy, the startup utilises plastic waste and CO2 to create synthesis gas, a key building block for various industrial products.
This approach looks to tackle the industry’s 15 per cent contribution to CO2 pollution from plastics, offering an innovative solution to meet net-zero emission targets.
Cyclize claims to offer a highly plasma-based process that efficiently recycles diverse mixed plastic waste to produce synthetic gas. This process is economically competitive with fossil synthesis gas, offering a sustainable alternative for cleaner industrial practices.
Maike Lambarth, co-founder and CEO of Cyclize, says, “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.”
Capital utilisation
Cyclize will use the funds to expand its team and scale the technology for industrial use, with plans to test synthesis gas production and waste recycling.
Cyclize aims to commercialise and establish a waste-to-synthesis gas plant in a chemical park.
Venturing into new markets
Cyclize is positioning itself in the net-zero production market in Europe by enabling a low-threshold transformation for the chemical industry.
The company focuses on replacing the initial step of the value chain, providing a substitute for fossil-sourced synthesis gas. This approach allows existing process plants to continue operations, preserving most of the value chain and keeping production costs down.
Angel investor Dr. Klaus Schäfer says, “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.”