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German recycling startup Eeden said Tuesday it has raised a €18 Million ($20.4 million) Series A round to fund construction of a demonstration plant, paving the way to commercialise its textile-to-textile recycling process.
The company is part of a second-wave of recycling innovators hoping to crack the market for a new generation of recycled textiles. While early movers over the last few years have run into technical and commercial challenges, startups and their backers are still betting that a growing glut of clothing waste will create a rich market for those able to bring recycling technologies to commercial scale. Both brands and regulators are paying attention.
If it succeeds, Eeden’s approach promises a solution to a tricky challenge for the fashion industry. Its technology is capable of recycling clothes made from blends of polyester and cotton. The combination turns up in a substantial proportion of clothes made nowadays, but is much harder to recycle than pure polyester or cotton products.
Eeden’s funding round was led by Netherlands-based venture capital firm, Forbion, and included the venture investment arm of German chemical and consumer goods company Henkel. It’s the latest sign of emerging interest from more industrial players in the textile-to-textile recycling space.
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Last month, US-based startup Circ raised $25 million from investors including Taranis, a fund owned by oil and gas company Perenco Group. Meanwhile, French engineering firm Technip has laid out ambitions to build its recycling venture, Reju, into a $2 billion business.
Eeden’s near-term plans are more modest. The company’s demonstration plant is expected to go live next year, aiming to prove that its technology can produce cost-efficient, high-performance materials.
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The nascent textile-to-textile recycling industry is emerging from crisis with fresh momentum, as Swedish pioneer Renewcell is rescued out of administration and Sri Lankan manufacturing giant MAS pledges to buy thousands of metres of recycled polyester.
