Dow boosts access to circular feedstocks with strategic investment in Rotterdam-based advanced recycler Xycle

• As part of an ongoing commitment to transform waste and advance a circular economy for plastics, Dow has invested in advanced recycling startup Xycle alongside ING, Invest-NL, Polestar Capital and Vopak
• The investment will support construction of Xycle’s flagship advanced recycling facility in the Port of Rotterdam, with a capacity to process 21 kilotons of plastic waste annually
• Xycle’s proprietary pyrolysis technology converts difficult-to-recycle plastic waste into pyrolysis oil that can be used to make virgin-quality plastics
• Dow will be an off-taker of circular feedstock from Xycle’s new plant, using it to manufacture new circular plastics, addressing increasing global demand for circular products

 Dow has today announced an equity stake in Xycle, a Rotterdam-based pioneer in advanced (also known as chemical) recycling technology, alongside investors ING, Invest-NL, Polestar Capital and Vopak. This marks an important milestone in Dow’s ongoing commitment to transform plastic waste into high-value materials and accelerate a circular economy for plastics by further increasing and diversifying access to circular feedstock.

The collective funds, comprising both equity investments and senior debt, will support the construction of Xycle’s first commercial-scale advanced recycling plant, strategically located in the Port of Rotterdam. The facility is expected to be fully operational by Q4 2026, with a projected plastic waste processing capacity of 21 kilotons annually (kta). Dow will be an off-taker of the circular feedstock produced and will utilize it to manufacture new circular plastics, which are in high demand from global customers and brands.

Xycle’s advanced recycling technology uses low-temperature pyrolysis to efficiently break down difficult-to-recycle plastic waste into pyrolysis oil, increasing the liquid fraction available for use as cracker feedstock in new plastic production. This circular feedstock can be used to manufacture virgin-quality plastics for high-value applications, such as food-grade packaging, medical and automotive components.

“We are thrilled to announce this strategic investment in Xycle which marks another pivotal step towards our goal to transform the waste.” commented Stephanie Kalil, commercial vice president, Dow Packaging & Specialty Plastics EMEA. “The performance and efficiency of Xycle’s technology strongly complements our increasingly diverse global portfolio of recycling solutions. We believe that the robust financial backing and credibility of our consortium partners demonstrates the strength of the opportunity at hand to scale advanced recycling technologies; to address the plastic waste challenge and meet growing customer demand for circular products.”

The modular layout of Xycle’s facilities allows production to scale up or down depending on demand, ensuring both flexibility and efficiency in operations. In the future, Xycle plans to develop more advanced recycling facilities globally, utilizing larger reactor sizes to increase single plant capacity to 100 kta.

Arnd Thomas, chief executive officer, Xycle Holding commented: “Dow’s investment – alongside our other partners - in Xycle’s first commercial facility marks a significant step in developing and expanding our innovative pyrolysis-based technology, which has been shown to deliver best-in-class yield for cracker feedstock. Working closely with Dow will ensure we can leverage their expertise in developing high-quality circular materials, enabling us to scale our unique technology and accelerate the transition to a circular economy for plastics.”

Dow’s investment in Xycle is part of a broad portfolio of technologies to transform plastic waste and other forms of alternative feedstocks into 3 million metric tons of circular and renewable solutions annually. Seen as a complementary process to the mechanical recycling solutions Dow is accelerating, the advanced recycling process from Xycle allows for a wide range of plastics waste to be transformed back into virgin-quality circular materials. Xycle’s technology can process mixed plastic waste that currently can’t be mechanically recycled and, as a result, ends up in landfill or incineration.

Dow and Xycle share a commitment to advancing innovative recycling solutions that create a circular economy for plastics. This investment is an example of how Dow works with expert partners to build ecosystems that collect, reuse or recycle waste to meet growing customer demand. Explore more by visiting www.dow.com/materialsecosystemopens in a new tab.

About Dow
Dow (NYSE: DOW) is one of the world’s leading materials science companies, serving customers in high-growth markets such as packaging, infrastructure, mobility and consumer applications. Our global breadth, asset integration and scale, focused innovation, leading business positions and commitment to sustainability enable us to achieve profitable growth and help deliver a sustainable future. We operate manufacturing sites in 30 countries and employ approximately 36,000 people. Dow delivered sales of approximately $43 billion in 2024. References to Dow or the Company mean Dow Inc. and its subsidiaries. Learn more about us and our ambition to be the most innovative, customer-centric, inclusive and sustainable materials science company in the world by visiting www.dow.comopens in a new tab.

About Xycle
Xycle is committed to developing innovative solutions that contribute to a more sustainable world. As pioneers of an innovative chemical recycling technology, we transform hard-to-recycle plastic waste—currently destined for landfill or incineration—into valuable resources, contributing to a circular economy for plastics. Xycle’s shareholders are Dow, ING, Invest NL, NoWIT, Teknow and Vopak. Discover how Xycle is driving sustainability forward, visit www.xyclegroup.comopens in a new tab to learn more.

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