Bengaluru, Jan 20 (.) Amit Tandon, founder and CEO of deep-tech startup PolyCycl working on chemical recycling solutions for hard-to-recycle plastics, said the company’s business model is largely decoupled from global crude oil prices.
“Actually, this is not sensitive. I would have even liked to say that it is decoupled, but, you know, that will probably only happen over time. But it is not sensitive, certainly,” he told said responding to . query.
Tandon explained that circular feedstocks derived from waste plastics, certified as recycled material, now fetch a significant premium in international markets. Non-upgraded pyrolysis oil sells for around 1,300 to 1,600 euros per tonne, compared to fossil naphtha prices at roughly 700 to 900 euros per tonne. “From circular naphtha or circular feedstock, you go to circular polymers, which fetch a much higher premium. So the decoupling has already happened in the markets,” he added.
He noted that while minor price variations may occur, they are unlikely to impact PolyCycl’s business model. The shift allows the company to insulate its operations and investments from crude oil volatility, while strengthening the economic case for scaling chemical recycling globally.
Chemical recycling of waste plastics is emerging as a key complement to conventional fossil-based plastic manufacturing, with global petrochemical companies increasingly interested in low-carbon and circular feedstocks, industry experts said. Circular feedstocks command a premium due to their certified origin, traceability, and lower carbon footprint. In Europe, upgraded naphtha-equivalent pyrolysis oil is priced between 1,800 and 2,000 euros per tonne.
PolyCycl’s near-term strategy focuses on technology development and licensing, with selective joint ventures for deployment. The company aims to convert around 1.5 million tonnes of plastic waste over the next decade through licensed projects and is in discussions with potential licensees across India.
Globally, the chemical recycling market is projected to grow to USD 10–30 billion over the next decade. In India, plastic waste generation is estimated at 9–13 million tonnes annually, highlighting the scale of the opportunity. Chemical recycling can reduce greenhouse gas emissions by at least 40 per cent compared with conventional plastic production and end-of-life incineration, while diverting plastics from landfills or cement kilns and enabling true material circularity.
PolyCycl’s technology achieves conversion rates of 60–83 per cent by weight, with average yields of 65–70 per cent. Future plans include developing purified hydrocarbon oils for petrochemical use and exploring high-value applications such as sustainable aviation fuel.
Tandon highlighted policy challenges, including the 18% GST on plastic waste used as recycling input, which discourages formalisation. Rationalising GST, he said, could improve traceability and compliance.
On competition, Tandon noted that multiple global players, particularly in Europe and the United States, have achieved high valuations despite limited revenues. While chemical recycling alone is not a complete solution, it is a critical pillar of a broader circular economy strategy, complementing mechanical recycling and other waste management measures.
He expressed cautious optimism about reducing plastic litter, saying that once circular feedstocks gain economic value, informal and formal waste collectors are incentivised to recover plastics, gradually reducing environmental litter.
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