A new venture from a Dutch engineering and fossil fuel company, Reju plans to build a polyester recycling plant in the Netherlands, aiming for an impressive annual output equivalent to 300 million articles of clothing.
In just 18 months since its launch, Reju has already established a ‘Regeneration Hub Zero’ demonstration plant in Frankfurt, Germany, slated for official operation this year. Patrik Frisk, CEO and former CEO, Under Armor, notes, the company has secured partnerships with textile collectors and sorters, and engaged with over 100 brands and retailers to cultivate interest in its ‘Reju Polyester’ product across both American and European markets.
The initiative addresses a critical environmental challenge: polyester, a fossil fuel-derived fiber, now accounts for two-thirds of new clothing. Annually, the world produces 33 million metric tons of plastic-based fibers, yet a mere 3 per cent is recycled, according to the Ellen MacArthur Foundation. This mounting waste problem is increasingly pressuring fashion brands and retailers, especially with the advent of extended producer responsibility (EPR) regulations in the European Union and California.
While several companies are investing heavily in creating a circular economy for polyester, Reju stands out due to its deep connection to parent company Technip Energies. With nearly 70 years in the polyester business, Technip Energies' technology is integral to 40 per cent of the world's steam crackers, which produce ethylene, a polyester building block. Reju leverages IBM’s VolCat technology, co-developed with Under Armor, capable of breaking down polyester molecules into monomers for rebuilding, even handling dyes and pigments.
Reju's efforts are a part of Technip Energies' broader transition towards a lower-carbon future. The startup is strategically targeting densely populated areas for post-consumer clothing waste, with plans for a new US plant and a garment recycling pilot with Goodwill and Waste Management. However, the company faces a key challenge to convince brands to pay a premium for recycled fibers until cost parity is achieved.