ENSCHEDE – In the wake of Renewcell’s bankruptcy earlier this year, the novel textile recycling industry has faced intense scrutiny. Renewcell, a pioneering company in fibre recycling, had been considered a leader in chemical recycled textile solutions. Its downfall has led to considerable introspection across the sector, as companies now wrestle with questions about the viability of scaling these technologies.
Among those reflecting on the challenges and opportunities is Netherlands-based SaXcell, an emerging player in the textile recycling space which has hitherto kept a relatively low profile.
SaXcell’s CEO, Erik van der Weerd, recently shared his perspective on the industry’s evolution and the company’s approach to textile recycling. “While Renewcell’s collapse could seem advantageous for us, it has actually forced us to demonstrate why SaXcell can succeed where others have failed,” van der Weerd said. SaXcell’s path, from academic research to a fully operational company, has been deliberate and calculated, avoiding the rapid expansion that can potentially lead to instability in this emerging field.
Founded in 2015, SaXcell emerged from the work of five scientists at Saxion University in the Netherlands, who began investigating how to create new fibres from end-of-life textiles, instead of relying on traditional wood pulp. “The initial belief was that using cellulose from discarded textiles rather than wood was impossible,” van der Weerd noted. “But thanks to the persistence of our researchers, we solved many problems and created SaXcell fibres on a laboratory scale.”
Their aim was to create a Man-Made Cellulose Fibre (MMCF), akin to lyocell, a more sustainable alternative to viscose. The fundamental difference was that, while viscose is typically derived from wood pulp, SaXcell sought to replace this with cellulose from post-consumer textiles.
Note: Both viscose and lyocell are made from wood pulp and have more sustainable alternatives. A more sustainable viscose variant is, for example, Liva Reviva from Birla; and SaXcell is potentially a sustainable lyocell variant.
Despite challenges, SaXcell’s academic roots allowed for a rigorous step-by-step approach, which helped them overcome initial hurdles.
As SaXcell’s work evolved, the team encountered significant technical challenges. Van der Weerd outlined the difficulties in their process, including the need to adjust the viscosity of the pulp and remove contaminants like polyester, elastane, colour groups, and finishing materials from used textiles. “It’s a journey,” he said, “but we are gradually solving these issues, step by step.”
The process involves transforming discarded textile fibres into pulp, which is then dissolved in a solvent, spun into fibres, and used to create new textiles. SaXcell’s focus has been on producing high-quality lyocell fibres, which, according to van der Weerd, offer superior properties over viscose, including a more cotton-like appearance and a safer production process. However, reaching the required pulp specifications for lyocell production has been a complex and demanding process.
One major breakthrough for the company came with the development of its SaXcell 2.0 process. This method significantly reduced water usage, a critical factor for the sustainability of the process. “We’ve reduced water consumption from 40 to 11 litres per kilogram of pulp produced,” van der Weerd said. This improvement not only enhances the environmental footprint of SaXcell’s operations but also strengthens the economic case for scaling up production. Chemical and energy use have also been reduced significantly.
The economics of textile recycling are notoriously challenging and van der Weerd is acutely aware of this. “Making pulp from post-consumer textiles is more expensive than using wood pulp,” he acknowledged. SaXcell’s approach to this economic hurdle has been conservative, both in terms of financial planning and operational expansion. The company is financed primarily by shareholders, with less than 10 per cent coming from loans. Governmental subsidies have supported SaXcell’s research and development, allowing the team to operate on minimal salaries, driven by a shared idealism.
A critical aspect of SaXcell’s strategy has been its partnership with Birla Cellulose, one of the largest MMCF producers in India. This collaboration has allowed SaXcell to conduct large-scale trials and secure mass production of its fibre, now marketed as SaXcell L30, which contains 30 per cent recycled pulp using a mix of post-industrial & post-consumer textile waste and 70 per cent wood pulp. This partnership, van der Weerd said, “positions SaXcell as a fibre supplier rather than just a pulp producer,” giving it a stronger foothold in the supply chain and the ability to market fibres directly to textile manufacturers.
SaXcell’s future plans rest on a three-pronged strategy: commercialising SaXcell fibres with Birla pulp and fibre production, establishing a small-scale pulp production plant in the Netherlands, and licensing its technology to partners worldwide. The small plant will be capable of producing 750 tons of pulp per year, with scalability up to 3,000 tons. However, van der Weerd said the initial production will be small scale to ensure the process remains stable and economically viable.
Looking ahead, SaXcell’s licensing model is viewed as crucial for broader industry impact. “If a circular innovation is to be valuable, it must scale,” van der Weerd noted. The company plans to license its technology to partners in regions with ample feedstock and spinning capacity, ensuring the SaXcell process can be replicated globally.
However, van der Weerd is realistic about the broader challenges facing the textile industry. “The market is split,” he explained. “While there’s a growing belief in sustainability, fast fashion from China is also expanding, putting downward pressure on prices.”
SaXcell aims to serve both large brands looking to incorporate sustainable fibres and niche segments such as sustainable fashion, workwear, and non-woven textiles. This diversified approach in theory helps mitigate the risks of price competition in the mass market.
While there are serious challenges for the textile recycling space right now, SaXcell does have regulatory headwinds in its favour. For instance, to facilitate a more circular economy the European Union recently adopted the Green Deal which will help the EU to become climate neutral by 2050.
The Green deal includes an obligation to use recycled materials in the products like textiles, and such an obligation would potentially be a gamechanger for the recycling of plastics and of textiles.
Extended Producer Responsibility (EPR) schemes are also becoming more widespread. EPR is a policy tool that extends the producer’s financial and/or operational responsibility for a product to include the management of the post-consumer stage, in order to help meet national or EU recycling and recovery targets.
EPR policies in theory shift the waste management cost and/or physical collection partially or fully from local governments to producers.
In Netherlands the EPR for textiles started 2024. All producers and importers of textiles on the Dutch market will pay a fee for the produced and imported pieces of textiles. The collected money will be used to support sustainability and recycling in the Dutch textile sector.
Reflecting on Renewcell’s challenges, van der Weerd pointed to SaXcell’s measured approach which, combined with its strategic partnerships and technological innovations, will enable it to succeed where others have faltered.
“Textile recycling is not just a trend; it’s a necessity,” he stated. “We believe that within five years, the industry will see real momentum in recycling. By then, we’ll look back and realise it was just a matter of starting and doing it.”
