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Tiffany HuaSenior Research Associate
Lead Analyst:
Closing the Loop: Understanding the Viability of Textile Recycling
Charles WillardAnalyst
Contributors:
E X E C U T I V E S U M M A R Y
Client confidential. Not for redistribution.Client confidential. Not for redistribution.
Textile recycling is crucial to forming the circular economy in apparel, as this technology reutilizes fiber, yarn, and textile waste, opposing the take-make-waste model. However, current solvent-based textile recycling that can process mixed post-consumer textile waste needs further development to become economically feasible. Improvements in solvent recovery and efficiency will be key to scaling the technology successfully. Brands must develop the textile supply chain and collection infrastructure alongside textile recycling through multiple initiatives, including reuse/resale channels, takeback programs, EPR schemes, and municipal support. There is an opportunity to develop a textile recovery infrastructure through resale channels with sorting capabilities that feed into textile recycling. Consortiums will be critical to building the textile recovery value chain and promoting the circular economy in apparel.
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Raw material production
Fiber production
Yarn production
Fabric production
Apparel production
Retailer
Consumer
Textile recycling
Thrift/nonprofit
Resale platform
End of life
EXECUTIVE SUMMARY
The textile recycling and waste supply chain needs to be tackled together by the entire textile industry
Client confidential. Not for redistribution.Client confidential. Not for redistribution.
The apparel industry is being driven to develop textile recycling due to concerns about impact
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The fast fashion and apparel industry has been under fire for its linear take-make-waste model, where overproduction of garments has resulted in landfilling of millions of tons of both worn and unworn clothes. This has pushed the apparel industry to move toward sustainable materials and the idea of the circular economy. Consequently, fashion brands are incentivizing the development of new textile recycling methods that enable circular materials. To form the circular economy in apparel, it is critical to form robust textile recovery infrastructures and textile recycling technologies that can handle mixed post-consumer textile waste. Lux has published several pieces of research describing the shift toward more sustainable materials within apparel:
• Emerging Materials Opportunities for the Apparel Industry: This report highlights the most promising material innovations within the apparel industry as we see increasing demand for sustainable products, differentiation, more functional clothing, and cleaner manufacturing.
• Ellen MacArthur Foundation: One Year Later: This report reviews the first CPG plastic waste pledges made to the Ellen MacArthur Foundation and the steps companies are taking to meet them.
• The Future of Plastic Recycling: This report explores the economics of plastic recycling technologies, similar to what is used here for textile recycling.
Client confidential. Not for redistribution.Client confidential. Not for redistribution.
Textile recycling will impact a wide array of stakeholders
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The goal of this report is to help clients build a clear understanding of advanced recycling technologies and develop an outlook for the future of textile waste. This is crucial for every stakeholder in the apparel value chain:
• Material and chemical companies need to understand how textile recycling can create new market threats and opportunities.
• Consumer-facing brands mapping out 2025 sustainability strategies need to understand how the future development of textile recycling will affect product design.
• Recyclers need to know which technologies will be economical and understand the future outlook for adoption.
• Government entities need to decide which technologies to endorse and how the outputs of these technologies fit into regulatory frameworks.
• Investors need a clear picture of process economics to gauge possible returns.
Client confidential. Not for redistribution.Client confidential. Not for redistribution.
There is a huge push for textile recycling as a solution for the circular economy in apparel
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Sustainability in the apparel industry has garnered significant attention as landfilling has become a pain point for consumers. In the U.S. 85% of all textiles are thrown away, roughly 13 million tons per year.
In the ideal textile recovery supply chain, garments go through reuse and resale to extend the life of garments –but even secondhand clothes do not solve the waste issue. While reuse and resale are a critical piece of the circular economy that extends the lifetime of textiles, reuse cannot prevent disposal forever. Without textile recycling, there can be no true circular economy in apparel. Textile recycling diverts fiber, yarn, and textile waste from the landfill and returns it into valuable products. This report focuses on fiber-to-fiber recycling of blended post-consumer textile waste, as these fabrics are the most difficult to recycle.
Raw material production
Fiber production
Yarn production
Fabric production
Apparel production
Retailer
Consumer
Textile recycling
Thrift/nonprofit
Resale platform
End of life
Client confidential. Not for redistribution.Client confidential. Not for redistribution.
Guide to our analysis: We highlighted key assumptions, production costs, profitability, and major takeaways
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ASSUMPTIONSBaseline assumptions about process and economic factors, such as yield, selling prices, or waste costs. All processes assume treatment of 66,000 tons of polycotton per year.
PRODUCTION COSTSThis chart lists the calculated production costs. Note that all calculations and values are reported on the basis of waste plastic treated, not product produced.
KEY TAKEAWAYThe title of the slide will highlight the key findings from the cost model.
PROFITABILITYThis chart maps the costs and projected revenues of the technology to guide clients on profitability.
Client confidential. Not for redistribution.Client confidential. Not for redistribution.
Additionally, we analyzed the technology’s sensitivity to changes in economic and technical factors
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NEGATIVE FACTORSThis graph maps the impact of inputs on profitability. When these factors increase, the profitability of the process decreases.
PARAMETERSThese charts list which parameters are changing and how much. The baseline values are the same as on the previous slide.
POSITIVE FACTORSThis graph maps the impact of selling price and yield on profitability. When these factors increase, the profitability of the process increases.
Client confidential. Not for redistribution.Client confidential. Not for redistribution.
Solvent-based recycling can separate polycotton textiles
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Introduction
Solvent-based recycling methods for cellulosic fibers have a long history. The most promising development is the technology’s ability to process blended garments like polycotton with traces of other fibers like elastomers. Developers of solvent recycling technologies claim that the process can handle both cellulosic and plastic fibers with 5% to 10% of any other fibers. These technologies are now moving from R&D to the pilot stage, where some claim a cost advantage over naturally produced fibers. In order to understand the viability of solvent-based recycling of polycotton waste feedstocks, our model is built using information that Renewcell has publicized and a process similar to that for Renewcell and Södra.
Process Flow
To recycle polycotton, the textile waste feedstock is first pre-treated, then further processed with chemical solvents to separate the two components, and finally filtered and further processed individually. Some solvent-based textile recyclers also incorporate automated sorting technologies and high solvent efficiency systems, which they claim significantly reduces costs.
1. Pre-treatment
2. PET Degradation
3. Filtration
4. Solvent Recovery
5. Extrusion and Spinning
Client confidential. Not for redistribution.Client confidential. Not for redistribution.
Solvent-based recycling can separate polycotton textiles
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Process Flow (cont.)
In this analysis, we assumed a post-consumer polycotton waste input composed of 50% cotton and 50% polyester.
1. The analysis assumes an acid hydrolysis pre-treatment using 0.4 M HCl in water at 80 °C to clean the waste feedstocks of any residue, coatings, or buildup from repetitive laundering.
2. There are several methods to separate PET and cellulose; this analysis uses acid hydrolysis, where the cotton cellulose is maintained and PET is degraded with an alkali solvent.
3. The cellulose and polyester are filtered and then treated separately through drying processes.
4. Solvents are recovered for reuse and treated, removing any dyes, contaminants, or impurities.
5. The resulting cellulose can then be sold as pulp for further processing and spinning into fiber, while the polyester monomers can be sold for production of polyester or PET plastics.
1. Pre-treatment
2. PET Degradation
3. Filtration
4. Solvent Recovery
5. Extrusion and Spinning
Client confidential. Not for redistribution.Client confidential. Not for redistribution.
Recovery efficiency or a major cost premium will be necessary to ensure viability
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Process
In solvent-based recycling, technologies mainly differ by solvents used and process efficiencies. In this scenario, we have used conventional low-cost solvents and found that solvent efficiency will be the largest factor in terms of cost viability. There are strategies to reduce costs by maximizing solvent efficiency and careful solvent processing.
The sensitivity analysis shows textile recycling breaks even when solvent recovery efficiency is 98.5% or more or if solvent costs are reduced by half. In order to be viable, the resulting recycled cellulose and recycled PET monomers would have to be sold at a significant premium (as much as a 50% premium over virgin cellulose and polyester) if there is no change in the process.
Solvent
Some developers use conventional solvents like ethanol or chemicals like HCl and NaOH, while others use specialty ionic liquids, which have a higher cost. Our analysis assumed the lowest cost of conventional solvents, and it is possible that these solvents could cost more, depending on the selection. Ultimately, solvent recovery efficiency during the pre-treatment and separation steps will determine long-term profitability while maintaining reasonable selling costs.
Client confidential. Not for redistribution.Client confidential. Not for redistribution.
Solvent-based textile recycling will struggle to be profitable and is highly dependent on recovery efficiency
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Present Status
The majority of players in solvent-based textile recycling are in demonstration stages and have yet to prove that their technology is cost-effective at scale. Renewcell will be the first player to bring its solvent textile recycling technology to commercial scale – 66,000 metric tons per year. At this point, the company uses a combination of pre-consumer textile waste, including textile clippings and nonsewn items, and some post-consumer waste. Larger players, including Lenzing and Södra, have started to incorporate some cellulose recycling into their business using a small percentage of both pre-consumer and post-consumer textile waste. Still, solvent-based textile recycling makes up a small fraction of a percent of total textile recycling, where mechanical recycling remains the majority.
Outlook
Our findings show that the economics of solvent-based recycling are unfavorable and that the path to profitability is difficult given the high cost of solvents, in addition to high capital expenses. Scale-up of textile recycling is still years out, as companies are still stuck trying to figure out how to turn a profit at scale. While entry into the solvent-based textile recycling space is currently unfavorable, developers should be monitored for process or solvent improvements, as the solvent efficiency will be key. Development of textile collection infrastructure and sorting technologies will also aid in improving feedstock quality and reducing costs.
Client confidential. Not for redistribution.Client confidential. Not for redistribution.
The current textile recovery infrastructure is fragmented, if not nonexistent
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According to the Environmental Protection Agency (EPA), 84% of unwanted clothes in the U.S. in 2012 went into either a landfill or an incinerator. Currently, there is no centralized or standard textile recovery infrastructure, as there is for plastic packaging waste. The textile waste supply chain is very fragmented. There are multiple collection points for used clothing – donation bins, brand takeback programs, thrift shops, and municipal curbside programs. At this point, the majority of textile waste in the U.S. is managed by municipalities and will either end up in landfills or be incinerated.
In thrift shops and nonprofits, valuable garments are identified and diverted to resale. The rejected garments are sent to sort graders, which categorize and grade textiles based on quality, condition, format, and type, and the sorted grades are then sold into recycling or downcycling markets. The poorer-quality blended post-consumer textile waste is typically downcycled, sent to landfills, or incinerated.
1. Collection/ takeback
2. Sorting for refurb/resale
3. Sort graders
4. Recycle/downcycle
4. Landfill/incineration
Client confidential. Not for redistribution.Client confidential. Not for redistribution.
Key Takeaways: The textile recycling and waste supply chain needs to be tackled together by the whole industry
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