Closed Loop Partners announced that its Catalytic Capital & Private Credit group provided a loan to Renegade Plastics, a Colorado-based startup commercializing a mono-material polypropylene (PP)-coated textile that can be recycled and is engineered to replace harder-to-recycle, multi-material polyvinyl chloride (PVC), polyethylene and polyurethane-coated textiles across a wide range of industrial and consumer fabric applications. The loan marks a key milestone in Closed Loop Partners’ work to strengthen responsible recycling end markets, especially in states like Colorado that have Extended Producer Responsibility (EPR) policy in place, and bolster domestic supply of recycled polypropylene (rPP) as demand for the resin grows.
Closed Loop Partners’ financing supports Renegade Plastics’ pilot production line in Denver, Colorado, providing working capital as the company builds toward a commercial-scale facility. The financing is being provided in conjunction with a $5 million grant that Renegade Plastics has been awarded by Colorado Circular Communities, in support of the commercial-scale facility.
Renegade Plastics, co-founded by Tony Ehrbar and Curran Hughes, was developed to strengthen the material efficiency and circularity of the coated textiles market. Coated textiles, also known as technical or industrial fabrics, are used across construction, signage, logistics, sports, automotive, healthcare, apparel and many other sectors, representing a market opportunity of more than $91 billion.
The category remains dominated by PVC, a material that is historically difficult to recycle because of its predisposition to degrade at relatively low temperatures and release toxic hydrogen chloride gas during reprocessing. PVC has also faced mounting scrutiny for potential adverse health effects connected to phthalates and per- and polyfluoroalkyl substances (PFAS), also known as “forever chemicals.”
As major brands move to phase PVC and other PFAS-containing materials out of their supply chains, and seek alternative materials such as PP that are durable and have stronger recovery potential, strengthening markets for rPP has become critical. Supporting manufacturers equipped to turn the resin into high-performing, high-volume end products has become central to strengthening recycling supply chains.
Renegade Plastics meets that need with a novel, mono-material coated textile made by laminating PP onto a woven PP scrim. Made of a single polymer rather than a blend of incompatible materials, the finished product is designed to be recycled at end-of-life. The rolled fabric is manufactured to varying specifications for use across consumer products, including tarps, mats, geotextiles, seat covers, mattresses and weatherproof bags, as well as industrial applications, such as agricultural curtains, reusable fabric dunnage, automotive composites and construction materials.
Renegade’s fabric also carries a meaningfully lower environmental footprint than the incumbents it is designed to replace. The recycled content drives a near-50% lower carbon footprint compared to virgin PVC fabric of similar performance, while remaining lighter and equally performant. The company can incorporate rPP directly into its coating and is working with scrim manufacturers to increase recycled content further, with a goal of reaching 25%-plus recycled content in its finished fabrics. Renegade can also produce accessories such as grommets made with 100% rPP that perform better than conventional alternatives.
To further close the loop, Renegade has built a network of more than 10 qualified recycling partners across the country that can take back post-use tarps and fabrics, shred and reprocess them, and return a drop-in rPP resin that Renegade can reincorporate into new products, allowing the company’s own material to re-enter its supply chain at the end of its useful life. This model supports a more durable supply chain for recycled resin, connecting recyclers and manufacturers around a consistent source of demand.
“We are at a pivotal moment in our growth. Across every industry that we serve, we are seeing increasing demand for an alternative product that provides the durability and circularity required for coated commercial and industrial fabrics,” said Tony Ehrbar, Co-founder and CEO of Renegade Plastics. “Partnering with Closed Loop Partners not only gives us the capital, but the network and circular economy expertise needed to scale the development of our technology and meet the growing demand for alternative materials that can be recycled.”
“Investing in end manufacturers is critical to building durable supply chains and end markets for recycled resins and commodities, and to advancing a functioning circular economy. These opportunities have increasingly become a priority for investors, as demand for supply chain resilience and material security continues to rise,” said Tazia Smith, CEO of Closed Loop Capital Management, the investment firm of Closed Loop Partners. “As Renegade Plastics continues to pursue commercial growth, we see catalytic capital as a key lever at this stage—helping attract more investment and providing the flexible, strategic support needed to meet market demand.”