In a bold move to clean up the textile industry’s massive waste problem, cleantech startup Syre has teamed up with retail giants Gap, Target, and Houdini Sportswear to roll out circular polyester at scale. Launched by H&M Group and Vargas, Syre’s mission is to slash the fashion industry’s environmental toll by recycling post-consumer textiles into high-quality polyester, cutting CO2 emissions by up to 85% compared to virgin materials. Gap’s betting big with 10000 tonnes yearly, Houdini’s aiming for half its polyester needs, and Target’s weaving Syre’s fibers into its brands for a circular future. With a 10 to 12 million-ton polyester shortage looming, can Syre’s North Carolina and Vietnam plants spark a circular economy, or will feedstock scarcity and rival startups like Carbios stall the shift?

The Circular Fashion Leap

Syre uses depolymerization to break down textile waste into chemical building blocks, rebuilding them into polyester rivaling virgin quality. Its partnerships with Gap, Target, and Houdini mark a commercial launch to mainstream circular fibers. Gap, America’s largest specialty apparel retailer, will integrate 10000 tonnes of Syre’s polyester chips annually across Old Navy, Gap, Banana Republic, and Athleta, supporting its sustainability goals. Houdini, a Swedish outdoor brand, commits to sourcing half its polyester from Syre for three years, eyeing a waste-free ecosystem. Target, with nearly 2000 stores, will embed Syre’s polyester in owned brands, aiming for fully circular design. Syre’s Series A funds a 10000-tonne North Carolina plant and a Vietnam gigascale facility, targeting 150000 to 250000 tonnes yearly.

Read more: Aptera and Inmotive Partner to Boost Solar EV Efficiency

Why It’s a Climate Win?

Textiles churn out a tenth of global CO2e emissions, with polyester, used in two-thirds of apparel, driving 71 million tonnes of virgin production. Syre’s process could save 12 million tonnes of CO2e annually if scaled to 3 million tonnes, equivalent to 16 billion T-shirts. A study predicts a 10 to 12 million-ton gap in recycled polyester as bottle-to-fiber recycling fades under EU regulations. Gap’s 10000-tonne commitment could cut 15000 tonnes of CO2e yearly, while Houdini’s shift aligns with its heavy recycled material use. Target’s move supports its retail footprint, tapping strong consumer demand for sustainable apparel.

How It Scales Up?

Syre’s North Carolina blueprint plant, adjacent to a Selenis facility, will produce 10000 tonnes of polyester chips, using post-consumer textiles from U.S. closets. The Vietnam plant targets 250000 tonnes, leveraging post-industrial waste. Syre’s low-pressure, low-heat recycling, using polyethylene glycol, handles polyester-cotton blends, unlike rivals. H&M’s deal ensures feedstock, with a third from its 4800 stores. Gap, Target, and Houdini will co-develop fibers with Syre, ensuring seamless integration. Syre’s partnerships with spinners and manufacturers aim to supply a fifth of global polyester demand, cutting landfill waste by 15 million tonnes.

The Looming Hurdles

Scaling textile-to-textile recycling is a tough weave. Feedstock sourcing, with only 1% of textiles recycled, faces competition from startups like Reju and Circ. Syre’s North Carolina and Vietnam facilities need more funding to hit 3 million tonnes. Sorting mixed textiles, with many garments mislabeled, costs a premium. EU regulations phasing out bottle-to-fiber add pressure, but few global markets enforce similar rules. Rivals like Carbios and Samsara Eco challenge Syre’s lead. If consumer demand dips, with many prioritizing cost over sustainability, brands may balk at Syre’s premium pricing.

Explore OneStop ESG Marketplace: Waste management

What’s Next for Circular Fashion?

Syre aims for three gigascale plants, producing 3 million tonnes, saving 15 million tonnes of CO2e annually against 35.6 billion tonnes of global emissions. The North Carolina plant’s launch will supply Gap’s order, with Target testing polyester in a fraction of its products. Houdini’s shift could inspire niche brands, adding millions in circular sales. Syre’s eyeing more partners, potentially doubling its H&M deal. EU’s textile waste ban could drive billions in recycling investment, but feedstock shortages and virgin polyester demand may slow progress.

Explore ESG Solutions on our marketplace - OneStop ESG Marketplace.

Keep abreast of the top ESG Events on OneStop ESG Events.

OneStop ESG Educate: Your go-to source for top ESG courses and training programs tailored to your needs.