Virginia-based Circ has developed a hydrothermal process that liquefies the polyester,

Virginia-based Circ has developed a hydrothermal process that liquefies the polyester, before heat and pressure separate the liquid polymer from the solid cotton to reclaim the cellulosic and synthetic materials. The recycled cotton is turned into fluffy flakes before becoming a pulp that can be subbed in for wood pulp, which makes up traditional lyocell. Meanwhile, the polyester content can be pelletized and extruded into new fibers.

Last month, Circ closed a $25 million round of funding with European retail conglomerate Zalando, sportswear producer Youngone and digital labels maker Avery Dennison. It plans to use the capital to scale up its production facilities.

Inditex, Zara's parent company, made an investment in Circ in 2022 by taking part in a $30 million Series B funding round alongside Bill Gates-­backed Breakthrough Energy Ventures and South Carolina textile manufacturer Milliken & Co.