Top 10 Circular Economy Startups in Europe Transforming Waste into Wealth

The European circular economy landscape is experiencing a dynamic transformation, driven by an urgent need for sustainability and innovative solutions to combat waste. A new wave of startups across Europe is spearheading this shift, turning what was once considered waste into valuable resources and pioneering more efficient, regenerative business models. This burgeoning sector is also attracting significant investment, with a record €8.4 billion in circular economy funding in Europe during the first half of 2024 alone.

Here are 10 top circular economy startups in Europe, demonstrating how innovation is reshaping industries and creating wealth from waste:

1. The Paze – Circular Packaging

   • Location: Stuttgart, Germany
   • Founding Year: 2023
   • The Paze offers zero-waste packaging-as-a-service for online retailers. Their patented Aero-Flex technology creates inflatable packaging that adjusts to product shape, reducing shipping costs and being reusable for up to a hundred cycles. This innovation significantly reduces environmental impact and improves storage and transportation efficiency.

2. Rebaba – Circular Battery System

   • Location: Stockholm, Sweden
   • Founding Year: 2023
   • Rebaba focuses on repurposing retired electric vehicle (EV) batteries into circular battery energy storage systems (BESS). By leveraging the 80% residual capacity of end-of-life EV batteries, the startup reduces the need for new battery production and maximizes existing potential.

3. Insutex – Construction Materials from Textile Waste

   • Location: Copenhagen, Denmark
   • Founding Year: 2023
   • Insutex addresses the growing problem of textile waste by recycling discarded clothing, production scraps, and unsold inventory into insulation materials for the construction industry. This process not only reduces carbon emissions in both textile and construction sectors but also provides suitable materials for wall, roof, and ceiling insulation.

4. Grover – Product as a Service (Electronics)

   • Location: Berlin, Germany
   • Founding Year: 2015
   • Grover operates a subscription-based platform for consumer electronics, offering a pay-as-you-go rental service. This model makes technology more accessible and aims to pioneer a sustainable, circular way of using tech products, directly tackling the issue of electronic waste, which accounts for approximately 5% of global waste. Grover has raised a total of €2.1 billion in funding.

5. Refurbed – Product Life Extension (Refurbished Electronics)

   • Location: Vienna, Austria
   • Founding Year: 2017
   • Refurbed provides an online platform for refurbished electronics, encouraging consumers to choose sustainable options and reuse products already in circulation. The company claims to have saved over 54 million kilos of CO₂ since its inception through its services and has secured a total investment valuation of €63.3 million.

6. Cirtec – Circular Road Construction

   • Location: Spain
   • Cirtec, formed from a merger between Valoriza Medioambiente and Composan Industrial y Tecnologa, is promoting a circular economy in road construction projects. They achieve this by providing sustainable asphalt and other waste-derived by-products for infrastructure development. The company raised €150 million in growth equity in May 2024.

7. Verkor – Low-Carbon Battery Manufacturing and Recycling

   • Location: France
   • Verkor is building Europe’s largest gigafactory for the rapid manufacturing of low-carbon batteries. Crucially, the company contributes to the circular economy by automating the recycling of production scrap, ensuring materials are kept in use. Verkor secured a substantial $4 billion debt round in May 2024.

8. Re-Fresh Global – Textile Waste to Raw Materials

   • Location: Berlin, Germany
   • Re-Fresh Global is a pioneering biotech startup that uses innovative patented processes to transform textile waste into high-quality raw materials. Their advanced biotechnology separates cellulose and synthetic fibers via enzymatic hydrolysis, creating sustainable alternatives like Re-Nano™, Re-Thanol™, and Re-SanPulp™ for various industries including cosmetics, automotive, and construction. This minimizes landfill contributions and reduces greenhouse gas emissions.

9. SOLAR MATERIALS – Solar Panel Recycling

   • Location: Magdeburg, Germany
   • Founding Year: 2021
   • SOLAR MATERIALS offers a revolutionary solution for recycling solar panels, with a patented technology that enables the efficient recovery of 98% of raw materials such as silver, silicon, aluminum, copper, glass, and plastics. Their thermo-mechanical process is chemical-free, energy-efficient, and environmentally friendly, addressing the escalating challenge of solar panel waste. The company has secured over €3 million in venture capital.

10. Cyclize – Waste Plastics to Valuable Chemicals

    • Location: Utrecht, The Netherlands
    • Cyclize is a ClimateTech startup revolutionizing the chemical industry by using innovative plasma technology to transform waste plastics into valuable intermediate chemicals. This process converts waste materials into syngas, a mixture of hydrogen and carbon monoxide, which can replace fossil feedstocks, contributing to a carbon circular economy and reducing plastic waste pollution. Cyclize recently secured €5 million in seed funding.

These startups exemplify Europe's commitment to transitioning away from a linear "take-make-waste" economy towards a regenerative model. By focusing on eliminating waste, circulating products and materials, and regenerating natural systems, these companies are not only driving environmental progress but also unlocking new economic opportunities and contributing to a more resilient and sustainable future.