The Novoloop Recycling Plastic Recycling has reduced an agreement with an important manufacturer to produce the upcycled polyurethane thermoplasty on a commercial scale, TechCrunch has learned exclusively.
The deal helps to push Novoloop based in Menlo Park through the so -called “Death Valley” that many newly established technology businesses must pass.
The newly formed material companies are particularly prone to to stumble in the valley, the terrible moment when they have proven their original technology and have not generated sufficient revenue from the sale of their product.
Under the terms of the agreement, Novoloop will supply HUIDE science and technology with a chemical element used to create polyurethane thermoplastic. Novoloop makes the material, known as polyole, from polyethylene waste after consumer, such as plastic bags, one of the toughest recycling materials.
Polyurethas, or TPU thermoplasty, are a type of plastic used in everything, from shoes that run to medical products.
“For this product line, we have essentially achieved what the trade relationship would be,” said co -founder and chief executive of Novoloop Miranda Wang in TechCrunch.
At this point, Novoloop is limited to its ability to provide polyols, Wang said. Earlier this year in India, the launch commissioned the demonstration plant, which is able to produce tens of tons of material annually.
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The capacity of the demonstration unit is enough to produce enough TPU for “big pilot projects”, Wang said, including one for a shoe customer to be announced in the coming months. Previously, Novoloop provided the Swiss shoe manufacturer with its black cloudprime tread of the tread of the cloudprime.
Agreements such as Huide will be the key to Novoloop’s progress, Wang said. “The biggest obstacle to profitability is economies of scale,” he said. “Much of the focus next year will lead many of these customer deals to close so that we can fund the [commercial-scale] facilities.”
Once the agreements and funding come into force, Novoloop expects to operate and run in early 2028, Wang said. The first version should be able to provide several polyols to produce about 16,000 tonnes of TPU per year.
“When we can run the materials in these types of tumors. We expect to be able to be in price with the virgin TPU,” he said.
