H&M and Vargas Launch Syre for Sustainable Textile Recycling

photo, from H&M Group

#H&M Group and impact-focused venture investor #Vargas have teamed up to launch #Syre, a company dedicated to mass producing textile-to-textile recycled materials. Their aim is to create a #closed-loop solution for the clothing industry. Syre's initial focus is on polyester, which accounts for a significant portion of the sector's emissions. They've secured a $600 million offtake agreement for recycled polyester over seven years and plan to achieve 50% recycled material by 2030.

The company is constructing its first production plant in North Carolina, with plans to expand to twelve plants globally within a decade, targeting over 3 million metric tons of recycled polyester. Less than 1% of the global textile fiber market currently comes from recycled textiles, but Syre's circular polyester solution can reduce CO2e emissions by up to 85% compared to virgin polyester.

Dennis Nobelius, former COO of Polestar, leads Syre as CEO. The venture has attracted TPG Rise Climate, the climate investing strategy of global alternative asset manager TPG, as a founding investor.

H&M Group's new recycled materials goal, part of their broader ambition for 100% sustainable materials by 2030, aligns with Syre's mission. They aim to move away from virgin polyester and bottle-to-textile recycling toward a closed-loop alternative. Daniel Ervér, CEO of H&M Group, sees Syre as a crucial step in integrating circularity across their business and hopes to inspire other industry players to join the sustainability movement.

Syre marks Vargas's fifth venture, alongside companies like Northvolt, Polarium, H2 Green Steel, and Aira, all focused on driving innovation in sustainable solutions.

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