Cotton rich textile waste is becoming a reliable raw material for cellulosic fiber production

The textile industry is under steady pressure to reduce its dependence on virgin raw materials. Cotton requires significant water and land, while synthetic fibers bring growing concerns around microplastic pollution. At the same time, demand for fiber continues to rise, with supply from traditional sources showing little room for expansion.

A more practical approach now being explored is the use of textile waste as an alternative raw material. SaXcell is working in this space by converting cotton-rich waste into pulp for cellulosic fiber production. In this interview, Pramod Agrawal, CEO of SaXcell explains how the process works, the challenges of scaling it in real conditions, and why countries like Bangladesh could benefit by using their own textile waste as part of the supply chain.

TexSPACE Today: What inspired your journey into circular textiles, and how did that lead to founding SaXcell?

Pramod Agrawal: I came to the Netherlands for my PhD in green chemistry, exploring enzyme-based solutions for cotton scouring. It was a European Union project. It was then somewhere in early years of 2000 till 2005. That was my first real connection to both textiles and green chemistry.

From the very beginning, it was clear to me that sustainability had to be the direction. Textile production, dyeing, processing, supply chains – they’re hugely inefficient and environmentally damaging.

The idea for SaXcell came around 2011, working with colleagues at Saxion University of Applied Sciences. The name says it all like Sax from Saxion, Cell from cellulose. The company was formally registered in 2015, and by 2020 we had our first investor. Today we have three Turkish (UGURLULAR, SELIN Tekstil, Mode&Co) and two Dutch (Wevotex, Sympany) investors, covering the full supply chain sorting, feedstock, spinning, knitting, and marketing.

The founding entrepreneurs were more senior and are now at retirement age, so it was natural for someone like me to step up. Since November last year, I’ve taken on the role of CEO.

TexSPACE Today: Could you explain how SaXcell’s technology works and how it contributes to building a circular textile economy?

Pramod Agrawal: Our starting material is waste textile specifically cotton-rich waste, since 100% cellulose pulp is what we’re ultimately producing.

We can handle both industrial and post-consumer waste. The key requirement is a high cellulose concentration. We can also process poly-cotton blends, though we don’t recycle the polyester portion so that part is lost. If you start with 90% cotton and 10% polyester, you’ll recover only 90% of the material. So, the higher the cotton content, the better.

Our process can also handle multiple dye types like reactive dyes, vat dyes without issue.

Right now, we work with both post-industrial and post-consumer waste. At our new demo plant starting in Enschede, Netherlands, we’ll also be processing post-consumer laundry waste particularly towels and bed sheets. These are ideal feedstock: already white, nearly 100% cotton, and fully used through their lifetime.

TexSPACE Today: What are the biggest challenges in scaling textile-to-textile recycling, and how is SaXcell addressing them?

Pramod Agrawal: Cotton production is highly resource-intensive. You need roughly 2,000 liters of water per kg just for irrigation and around 10% of the world’s pesticides go onto cotton farms. On top of that, production has stagnated at 24–26 million tons annually over the last decade, while polyester has surged past 80 million tons.

The traditional alternative is viscose still requires cutting trees and uses a heavily chemical-based, water-intensive process. Many viscose plants have shut down for failing sustainability standards.

The most advanced commercially available technology today is Lyocell, a solvent-based process that recycles up to 99.85% of its solvent and uses very little water. But existing Lyocell products still start from wood pulp.

SaXcell goes a step further. We use the Lyocell process and replace wood with post-consumer textile waste. That combination textile-based feedstock plus Lyocell technology, we believe makes us the only company in the world offering this at a commercial scale.

Most companies talking about textile-to-textile recycling are either doing polyester recycling or feeding textile pulp into viscose, not Lyocell. That distinction matters enormously.

TexSPACE Today: How important are collaborations in accelerating sustainable innovation in textiles?

Pramod Agrawal: Partnerships are essential at every stage of our supply chain.

SaXcell’s core role is converting textile waste into pulp just that one step. Fiber production happens in close collaboration with Birla Cellulose in India. They exclusively produce fiber using our technology, which is why it’s still called SaXcell fiber.

On the forward side, we work with yarn makers, weavers, knitters, dyers, and garment producers. Sometimes we go directly to brands, who then use their own vertically integrated supply chains. Either way, we work closely on product development – demos and samples before anything goes to large-scale production.

On the backend, we collaborate with collection and sorting partners to ensure a consistent, quality feedstock supply. We’re not directly involved, but we stay closely informed to keep our pulp-making process running smoothly.

Our R&D works both directions too expanding the range of feedstock we can handle, while also pushing our fiber into new sectors. Right now, our focus is home textiles, denim, and apparel, all high-volume, cotton-dependent segments.

TexSPACE Today: How do you see regenerated fibers and circular materials shaping the future of the global textile industry?

Pramod Agrawal: The numbers tell a compelling story. Man-made cellulose fiber has already grown from around 4 million to nearly 9 million tons per year, and within five years the market is expected to reach 11 million tons. Most of that is still viscose but viscose is neither process-sustainable nor feedstock-sustainable. Lyocell has enormous room to grow within that space.

Two more forces are pushing things in our direction. Geopolitical tensions have strained polyester supply chains and driven prices up – pushing brands toward sustainable alternatives. And Europe is increasingly alarmed by microplastics from synthetic fibers, which means another shift back toward cellulosic.

Cotton can’t fill that gap – production is stagnant and resource-intensive. Viscose can’t either. So chemical recycling of textile waste into high-value fiber is really the only credible path forward.

I’d also add that mechanical recycling has its place, and we see it as complementary, not competition. It works well up to a point, but blending limitations and feedstock constraints mean a large portion of textile waste simply can’t go through that route. That material is perfect for us, since we’re essentially dissolving it into pulp regardless of fiber length or condition.

So, we’re very optimistic. SaXcell is positioned to replace viscose, wood-based Lyocell, and even cotton using waste that nobody else can handle. The technology is ready. It’s really now a matter of awareness and scale.

TexSPACE Today: What opportunities do you see for collaboration between SaXcell and Bangladesh’s textile industry?

Pramod Agrawal: We already have a Bangladeshi shareholder on our board, a Dutch entrepreneur originally from Bangladesh who saw the potential early. Last year, a Bangladeshi industry group visited us through a circular textile initiative organized by the Bangladesh Embassy in The Hague.

The opportunity is tremendous. Bangladesh doesn’t produce cotton domestically, meaning the industry is entirely dependent on imports for raw material. That’s a vulnerability. Setting up local pulp production using Bangladesh’s own textile waste – 10,000 to 30,000 tons per year could change that completely. That pulp becomes fiber, which feeds directly into home textiles, denim, and apparel for both export and domestic use.

European legislation is also creating a push. DPP, ESPR, eco-design regulations recycled content requirements are coming, likely by 2027 or 2028. Mechanical recycling alone won’t meet those standards. Bangladesh’s export industry will need a solution like ours.

Our business model is licensing not direct investment. We provide a turnkey solution: machinery, installation, feedstock setup, ongoing support. We go where the waste material is, rather than importing it to the Netherlands. Bangladesh is a strong focus for us.

In addition, we aim to support partners with quality control across the full value chain from fiber to yarn to finished textiles. In the coming period, SaXcell will also work closely with brands and supply chain actors to help meet evolving sustainability compliance requirements.