Renewcell, a Swedish startup that recycles textile waste into circular material feedstock, has partnered with Spinnova, a Finnish sustainable textile fiber producer, to develop and commercialize textile waste-based fiber. Spinnova intends to fund 50% of the project's total cost, ~ EUR 3.9 million (~ USD 4.2 million), from the Business Finland grant .

Renewell’s Circulose technology creates man-made cellulosic fibers, but when integrated with Spinnova's fiber spinning process, the recycled pulp can be turned into bio-based textile fiber without a chemical procedure.

The partnership is the first of its kind to accelerate textile-to-textile fiber production. Renewcell and Spinnova aim to release commercialized products from this technology by the end of 2024.