Plastic waste and the circular economy: an interview with Maike Lambarth and Dominik Novakovic from Cyclize

The HTGF portfolio company Cyclize recycles plastic waste using CO₂ to produce synthesis gas for chemical processes. In this interview, co-founders Maike Lambarth and Dominik Novakovic share their experiences and challenges in founding the climate tech company. They talk about how it all started – from an initial idea to the construction of a large test facility. They also have some valuable tips for founders, the most important of which are to keep going and have a good team ethic.

How did you come up with the idea of Cyclize and get the company started?

Maike Lambarth: At the University of Stuttgart, we worked on a project focused on producing marine diesel oil from CO₂. Our role in the project was to develop a plasma reactor for splitting CO₂. Stephan Renninger, our current CTO, began with this work in autumn 2018 and I joined at the start of 2019.

We were both scientific employees with a background in engineering and had little experience with plasma at that point in time. This actually proved to be an advantage, as we were able to come at the topic without any fixed ideas and pursue an unconventional approach. Roughly one year later, we were joined by Jan Stein, who later became a co-founder. He started out as a student and did some fantastic work right from the off. Once the research project had ended, we came to the conclusion that, while splitting CO₂ worked very well on a technical level, it was not an economically viable option – neither at that time or in the foreseeable future – due to the large amount of energy required to ultimately produce diesel.

However, we knew that we could recycle carbon with our very efficient plasma reactor. The question was therefore whether it could be used for a different economic application. Stephan ultimately came up with the idea of using plastic waste. This had two crucial advantages. We obtained, on the one hand, an additional source of carbon and, on the other hand, a source of energy. This significantly reduced the amount of electrical energy required, making the process economically viable under current market conditions. And the idea for Cyclize was born!

And then you joined the team, Dominik.

Dominik Novakovic: That’s right! There was the question of which funding opportunities were best suited to take the technology from research to application. While applying for the EXIST Transfer of Research programme, it became clear that the team needed someone with business know-how – and so I joined in 2022. We started out with funding from the EXIST Transfer of Research programme, which helped us to achieve many technical milestones, shape us as a team and generate a lot of market interest. This ultimately led us to found the company in 2023.

Your target market is the chemical industry. How is this industry profiting from your solution?

Maike Lambarth: To “cyclize” means forming a ring from a carbon chain. With Cyclize, we can cover three aspects. Firstly, we can replace fossil fuels such as natural gas by producing synthesis gas, which then serves as a building block for many different products. Secondly, we can recycle carbon and thus utilize plastic waste that previously could not be recycled. And there is also no need for a pre-sorting process, as we can simply recycle mixed, glued or coated plastics as well as plastics filled with other materials. Our process produces gas that is easier to clean than liquid products. Thirdly, in addition to plastic waste, we can also recycle CO₂ and use it to produce new plastic products. This capability is rare, as most technologies are only able to split and store CO₂, not utilize it as a raw material.

Dominik Novakovic: Another crucial factor for scaling our solution in the chemical industry is the economic viability of the process. The chemical industry faces considerable challenges, particularly with regard to CO₂ emissions and the use of fossil fuels. Our solution offers a process that can compete with existing solutions in terms of costs and thus play a fundamental role in the future chemical industry.

We have seen in the industry that there is huge pressure to develop processes that are not based on fossil fuels. There is also a demand for solutions that are economically competitive. Our technology can fulfil these requirements. It is not only important to offer a process, but to also ensure that the solution is scalable and marketable.

How did you cross paths with HTGF?

Dominik Novakovic: German start-ups in the hardware sector are well aware of HTGF. We made contact at an early stage. A crucial meeting then took place at Chemistry Pitch Day 2023. The team has comprehensive expertise and really knows how to establish and scale successful hardware companies. We are very happy that HTGF is now part of our journey.

Speaking of scaling up, what are you currently focused on and what are the next challenges?

Maike Lambarth: We offer a series of tests with our demonstrator at the University of Stuttgart. Companies are faced with the challenge of circularity and achieving net zero for their existing products. And we have the perfect solution. Companies send us either industrial waste or end-of-life products that they want to recycle in future. The aim is to test to what extent our technology represents a cost-effective solution.

In addition, we are currently working on putting into operation a much larger demonstrator that is already running semi-continuously in an industrial environment. The University of Stuttgart offers an outstanding infrastructure with its research power station. From 2025, our major task is to set up the first pilot plant in a chemical park. This will form the foundation for our first commercial chemical facility in the industrial environment of a chemical park.

So, there’s a lot to do. Are you currently looking to strengthen your team?

Dominik Novakovic: We have already grown a lot in our first year and are now an interdisciplinary team of over ten colleagues. We are always on the lookout for people who can offer expertise and experience in our field and help us to defossilize the chemical industry.

What would be your three tips for future company founders in the hardware sector?

Maike Lambarth: My first tip would be to not become discouraged. You encounter a lot of pessimism in the hardware sector. People often told us that it wouldn’t work out, that we needed too much money and the technology would be difficult to scale. Despite these warnings, we concluded a very successful seed funding round, raising over €4.75 million and receiving numerous inquiries from the market. You should therefore do things your own way and believe in your vision.

Dominik Novakovic: My advice is to learn from the experience of others. So many people have tried to establish a company – some have succeeded, and others have failed. Their experience is valuable and can help you to find your own path. You should have a concrete idea in mind, but also be open to the expertise and experience of others.

Maike Lambarth: And our third tip is that it is important to invest time in your team. This is something that companies don’t always get right. We quickly learned that it is important to regularly get together and talk about non-work-related matters.

Thank you for your fascinating insights!