Industry scales advanced recycling to boost the circular plastic economy
The demand for circular feedstocks in the plastics industry has risen significantly, driven by brands’ commitments to recycled content and regulatory pressures in Europe and the US, according to recycling industry experts.
Key industry players Infinity Recycling and Dow are investing in advanced recycling technologies, with partnerships and new facilities aiming to boost capacity and ensure an environmentally sustainable feedstock supply.
While these innovations can recycle more challenging plastic and produce high-quality materials, they also face challenges related to energy consumption, regulatory uncertainty, and further infrastructure development.
Jan-Willem Muller, co-founder and managing partner at Infinity Recycling, tells Packaging Insights that, in addition to recycled content integration pledges and regulatory changes, “supply chain pressures urge chemical producers to secure sustainable alternatives to virgin fossil-based feedstocks.”
“While demand is strong, supply has not yet reached the scale needed to fully meet these commitments — highlighting the urgency of scaling up advanced recycling capacity.”
Infinity Recycling’s approach focuses on investing in commercial-ready advanced recycling technologies that break down plastic waste into valuable feedstocks for the petrochemical industry.
“These processes, such as chemical depolymerization, pyrolysis, and solvolysis, enable the recycling of plastics that mechanical methods cannot handle — particularly flexible packaging, multilayer films, and contaminated plastics. By partnering across the value chain, we ensure these technologies are implemented at scale to deliver meaningful impact,” explains Muller.
Waste and circularity
Muller predicts 2025 and beyond to be a “turning point,” with increased commercialization of projects and further investment in scaling proven technologies.
“Meanwhile, policy frameworks (for example, the EU Green Deal and US state-level regulations) will shape how advanced recycling is positioned within circular economy strategies.”
Muller expects a shift toward value-driven recyclate investments, replacing impact-driven approaches.He also expects to see more integration with petrochemicals. “We don’t expect major chemical players to acquire technologies, but we do see partnerships with advanced recyclers that will secure a long-term sustainable feedstock supply.”
“There will also be a shift toward value-driven investments, with clear business cases for advanced recycling rather than purely impact-driven narratives.”
Meanwhile, chemicals corporation Dow has announced an equity stake in Xycle, a Netherlands-based advanced recycler. Other investors include ING, Invest-NL, Polestar Capital, and Vopak.
The collective funds aim to support the construction of Xycle’s first commercial-scale advanced recycling plant, strategically located in the Port of Rotterdam.
Stephanie Kalil, commercial vice president at Dow Packaging and Specialty Plastics EMEA, shares: “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 demonstrate 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 facility is expected to be fully operational by Q4 2026, with a projected plastic waste processing capacity of 21 kilotons annually. 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 as cracker feedstock in new plastic production.
The circular feedstock can be used to create food-grade packaging, medical, and automotive components.
Arnd Thomas, Xycle’s CEO, says: “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.”
Investment in collection and reprocessing infrastructure is crucial for scaling plastic circularity, says Muller.
“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.”
Advanced recycling pros and cons
Advanced recycling produces virgin-equivalent feedstocks, enabling the creation of high-performance plastics suitable for food contact and medical applications — something mechanical recycling often cannot achieve.
Meanwhile, Muller highlights that advanced recycling technology expands the feedstock range. “It allows for the recycling of contaminated, multilayer, or low-value plastics, which would otherwise be incinerated or landfilled.”
Scalability and integration are a further advantage of advanced recycling over mechanical technology. “These technologies can be integrated into existing petrochemical infrastructures, ensuring industrial-scale adoption.”
Regarding potential disadvantages, Muller highlights that advanced recycling processes require high temperatures and energy inputs, impacting their carbon footprint and cost competitiveness.
Advanced recycling can also come with regulatory uncertainty. “Policies defining the role of advanced recycling in circularity and sustainability frameworks continue to evolve, creating market uncertainty. Issues like end-of-life and recycled content in packing are key to having clear and standardized.”
“Furthermore, adoption depends on brand-owner demand, certification standards, and sufficient investment in collection and preprocessing infrastructure,” says Muller.
“We continue to engage with industry stakeholders, policymakers, and investors to create the infrastructure and market mechanisms necessary for long-term success — as we believe these businesses will become a new critical and independent part in the value chain.”
