Top 10 Circular Economy Startups in Europe Transforming Waste into Wealth

The drive towards a sustainable future in Europe is accelerating, with innovative startups at the forefront of transforming waste into valuable resources. As the traditional linear "take-make-waste" economic model proves unsustainable, the circular economy offers a resilient alternative focused on eliminating waste and pollution, circulating products and materials, and regenerating natural systems. This systemic shift addresses critical global challenges like climate change, biodiversity loss, and resource scarcity.

European nations, including Finland, Spain, and Sweden, are actively implementing national strategies and action plans to foster this transition, recognizing its potential for sustainable economic growth and job creation. This commitment is mirrored by a surge in investment, with a record €8.4 billion in circular economy funding in Europe during the first half of 2024 alone. This significant capital injection underscores the growing confidence in circular solutions.

Here are 10 pioneering European startups that are not just reducing waste but actively creating wealth, showcasing the diverse and impactful innovations shaping Europe's circular future:

1. Re-Fresh Global (Berlin, Germany) This biotech startup is revolutionizing the textile industry by transforming textile waste into high-quality raw materials. Using patented enzymatic hydrolysis, they separate cellulose and synthetic fibers to create sustainable alternatives like Re-Nano™, Re-Thanol™, and Re-SanPulp™. This process significantly minimizes landfill contributions, reduces greenhouse gas emissions, and conserves natural resources, making fashion and other industries more sustainable.

2. Kuori (Basel, Switzerland) Founded in 2022, Kuori develops sustainable alternatives to conventional plastics by utilizing organic waste materials such as banana peels and nut shells. Their flagship innovation is a flexible, bio-based, and biodegradable rubber-like material, initially for shoe soles, designed with cradle-to-cradle principles to combat microplastic pollution. Kuori has secured €2.3 million in funding to accelerate its market launch and expand industrial partnerships.

3. re.solution (Aachen, Germany) Established in 2023, re.solution focuses on chemical recycling technology for polyester-containing textiles. Their innovative process operates on renewable energy, drastically reducing chemical and water usage while effectively recycling fiber blends. This solution aims to divert the 69 million tons of fossil-based polyester produced annually from landfills or incineration, providing sustainable substitutes for virgin plastics and enhancing the textile industry's sustainability.

4. SOLAR MATERIALS (Magdeburg, Germany) This cleantech startup, founded in 2021, offers a revolutionary solution for recycling solar panels. Their patented thermo-mechanical process, which is chemical-free and energy-efficient, enables the recovery of 98% of raw materials, including silver, silicon, and glass. SOLAR MATERIALS aims to make solar energy truly circular, addressing the escalating challenge of solar panel waste and has secured over €3 million in venture capital.

5. Cyclize (Utrecht, The Netherlands) Cyclize is a pioneering ClimateTech startup dedicated to transforming the chemical industry. They use innovative plasma technology to convert waste plastics into valuable intermediate chemicals like syngas (hydrogen and carbon monoxide). This groundbreaking approach replaces fossil feedstocks, creates a carbon circular economy, and aims to mitigate plastic waste pollution and CO2 emissions. Cyclize recently secured €5 million in seed funding.

6. ProteinDistillery (Berlin, Germany) This company is shaping the future of the food industry by developing sustainable protein ingredients (Prew:tein®) through biomass fermentation. Sourced from industrial sidestreams like brewer’s yeast, their proteins offer a clean-label alternative to resource-intensive traditional proteins, significantly outperforming them in terms of carbon, water, and land use. ProteinDistillery's mission is to make sustainable food the new norm by promoting circular practices and reducing food waste.

7. Koralo (Munich, Germany) Koralo is revolutionizing the seafood industry with "New F!sh," a sustainable seafood alternative made from co-fermented microalgae and mushroom roots. This innovative product provides essential nutrients while eliminating the environmental issues associated with traditional fishing, such as overfishing and pollution from microplastics and toxins. Their production process boasts impressive environmental benefits, emitting 96% less CO2 than soy protein, using 98% less water, and requiring 94% less land than conventional fish farming.

8. Circu Li-ion (Foetz, Luxembourg) Circu Li-ion provides innovative upcycling solutions for batteries from electric vehicles, micromobility, power tools, and energy storage systems. Their fully automated process dismantles and diagnoses battery packs, extending battery life and maximizing the recovery of raw materials. This technology significantly reduces operational costs and CO₂ emissions, tackling the pressing issue of battery waste. They have secured €8.5 million in seed funding to expand their impact.

9. TRIQBRIQ (Stuttgart, Germany) TRIQBRIQ is leading change in the construction industry with its modular wood construction system (BRIQs), made from cost-effective industrial and damaged wood. These micro-modular wooden building blocks are assembled without artificial bonding agents, making the construction process faster and more environmentally friendly. The materials are 100% reusable at the end of their lifecycle, drastically reducing construction waste and capturing CO2 emissions.

10. Sorted (London, United Kingdom) Sorted is revolutionizing the recycling industry by providing AI-powered solutions to enhance the efficiency of Material Recovery Facilities (MRFs). Their technology uses advanced camera systems and machine learning to detect and sort recyclable materials on conveyor belts, significantly improving the performance of human pickers. By providing real-time data, Sorted empowers recycling managers to optimize operations, leading to up to a 77% increase in recovered value and boosting picker productivity by 50%. The company recently raised £1.65 million to further develop its AI-driven technology.

These European startups exemplify the critical shift towards a circular economy, demonstrating that environmental responsibility and economic prosperity can go hand-in-hand. By innovating across diverse sectors and material streams, they are not only tackling waste and pollution but also forging new pathways for growth and a more sustainable, resource-resilient future for Europe.