In another stride towards sustainable chemical production, the Stuttgart-based climate-tech startup Cyclize has announced a significant financial milestone. They’ve successfully secured €4.75M in a new funding round. UVC Partners spearheaded the investment, demonstrating strong confidence in Cyclize’s vision. High-Tech Gründerfonds (HTGF), Aurum Impact, UnternehmerTUM Funding for Innovators, and esteemed business angels like Dr. Klaus Schäfer also contributed. Schäfer, Covestro’s former CTO, will join Cyclize’s Advisory Board, enhancing the company’s strategic direction.
About the company
Cyclize emerged from the University of Stuttgart, targeting the defossilisation of the chemical industry. Their patented technology utilises mixed plastic waste and CO2, converting them into synthesis gas. This gas mixture, vital for advanced chemicals and fuels, traditionally comes from natural gas. Cyclize’s innovative approach, a plasma-based process, aims to replace fossil fuel sources, offering a sustainable alternative. This could significantly reduce CO2 emissions by 2050, championing a circular carbon economy.
The innovation and its impact
Maike Lambarth, Cyclize’s co-founder and CEO, emphasized the technology’s potential: “With our process, we send a significant signal for climate-neutral chemistry.” She highlighted the process’s ability to keep chemical companies competitive, even with Europe’s rising energy costs. The technology not only promotes a circular economy by transforming plastic waste into valuable raw materials but also allows for the continued use of existing process plants. This adaptability could offer a crucial cost-saving measure for the industry.
Cyclize has garnered interest from both the industrial sector and political figures since its inception in May 2022. The Federal Ministry for Economic Affairs and Climate Action (BMWK) has supported them through the EXIST Research Transfer program.
Investor insights
UVC Partners, a venture capital firm with approximately €400M under management, leads the investment. Specializing in European B2B tech startups, UVC Partners sees Cyclize as a solution to two critical problems: the low recycling rate of plastics and the unutilized potential of plastic waste as an energy source. Amanda Birkenholz, a lead investor, believes that Cyclize’s technology offers a significant advantage, especially given the current energy pricing policies. “Especially considering the current energy price policy, companies can secure a decisive advantage with Cyclize, utilizing a resource that has been scarcely used so far,” she states.
The funding will enable Cyclize to expand its team and scale its technology for industrial application. They plan to test their synthesis gas production and waste recycling processes with pilot customers and aim to establish a waste-to-synthesis gas plant in a chemical park. This venture not only signifies a step forward for Cyclize but also for the global shift towards more sustainable industrial practices.
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