New Impact Venture Syre Launches With A Mission To Decarbonize Textile Industry

STOCKHOLM  — March 6, 2024 — Initiated by Vargas and H&M Group, Syre today launches to decarbonize and dewaste the textile industry through textile-to-textile recycling at hyperscale, starting with polyester. Supported by an industry ground-breaking offtake supply agreement with H&M Group, Syre will establish multiple production plants producing circular polyester across the globe, reducing CO2e emissions by up to 85 percent compared to the production of oil-based virgin polyester[1].

“Syre marks the start of the great textile shift. We envision a world where every textile fiber sees a new day. By implementing true textile-to-textile recycling at hyperscale, we want to drive the transition from a linear to a circular value chain by putting textile waste to use, over and over again,” said Dennis Nobelius, CEO of Syre.

Textile waste is a growing global challenge, with less than 1 percent of the global textile fiber market coming from recycled textiles[2]. The textile industry today accounts for 7 to 10 percent of global CO2e emissions[3], with polyester being the biggest emitter and fastest growing fiber. Virgin polyester, made from crude oil in refineries, and bottle-to-fiber recycled polyester (rPET), are both linear meaning the majority of all end-of-life products currently end up in landfills or being incinerated. The textile industry is now at a tipping point as the European Union and other actors are introducing legislation that will regulate waste and accelerate demand for circular materials.

“Having been creating and scaling companies that enable the green transition for an entire industry, I am extremely excited to be part of founding Syre. As a plug and play solution into the existing textile value chain, Syre will be key in enabling delivery on ambitious sustainability targets for all polyester intense industries such as apparel, automotive, and home interior,” said Susanna Campbell, chair of the board and co-founder of Syre.

Syre is founded by H&M Group, the global fashion and design company, and Vargas, who has a proven track-record of building impact companies such as Northvolt, H2 Green Steel and Aira. In addition to this, TPG Rise Climate, the dedicated climate investing strategy of global alternative asset manager TPG, has joined as a founding investor with a substantial investment, bringing extensive experience scaling climate solutions globally and in companies focused on the circular economy.

H&M Group has secured an offtake agreement with Syre worth a total of USD 600 million over 7 years, covering a significant share of H&M Group’s long-term need for recycled polyester, which is currently primarily sourced from bottle-to-fiber (rPET).

“The new venture Syre is an important next step on H&M Group’s journey to integrate circularity across our business. With this solution to rapidly scale textile-to-textile recycling, we want to continue to drive and inspire more industry players to join us in closing the loop and accelerating the shift towards a more sustainable future,” said Daniel Ervér, CEO of H&M Group.

Syre will provide textile-to-textile circular polyester (cPET), with quality on par with oil-based virgin polyester and with a superior sustainability performance, reducing CO2e emissions by up to 85 percent. Its first production plant is being built in North Carolina, USA, and will be operational during 2024. Based on this blueprint, the manufacturing process will be rapidly scaled for global expansion, starting with Asia and Europe. Within ten years, Syre aspires to have 12 gigascale plants up and running at full speed and capacity worldwide, producing more than 3 million metric tons of circular polyester. The platform is agnostic and could expand into other fibers and technologies in the future.

In connection to the launch, Syre calls out for collaboration and partnerships across industries and the full value chain in order to jointly drive the textile shift and enable a healthy future of textiles.

[1] OnePointFive – Screening Life Cycle Assessment (LCA) of Circular Polyester Fiber, 2023

[2] Textile Exchange, 2022

[3] European Parliament, 2021

Posted: March 6, 2024

Source: Syre