At the end of this presentation. Skipping the disclaimer, going straight to the beginning on some comments, I'm pleased to share with you an update on our 2024 activities and current priorities. 2024 was a really transformative year for the company as we took continued steps to adjust to both market dynamics and to capitalize on emerging opportunities within the advanced recycling industry. In summary, the Cyclyx Joint Venture is now building two, rather one in 2023, now we're up to two industrial-scale sorting facilities in the US with a combined output capacity of 300,000 metric tons per year, and total committed capital has been raised and committed as $270 million. We recently announced our Plastics Joint Venture, which is headquartered in Madrid and is building waste plastic sourcing capability within the EU market.
In 2024, our wholly owned Styrenix business completed construction of a polystyrene recycling plant outside of Tokyo, Japan. We feel pretty good about our position in the marketplace, the capability of our team, and our industrial expertise. In a truly rapidly changing landscape, I do not believe it is an overstatement to say that Agilyx plays a meaningful role in the advancing of the industry. We do have scars that come from having navigated a pretty complex and shifting strategic landscape. I am very pleased that Agilyx has emerged stronger, more efficient, more focused, and we clearly have a valuable contribution to make to the industry. Over the last years, the development of advanced recycling capacity has been less aggressive than I think many of us anticipated, but we are certainly now seeing acceleration and projects being commissioned and coming online.
We made a, as a business, a strategic decision in 2023, and we took part of 2024 to implement, to focus on the feedstock supply element of our core competencies and to maintain but really streamline our efforts in the conversion business, as we've mentioned before. Accordingly, as Bertrand will cover the specific financial results later in the presentation, I did want to mention that, to make reference to it, that we decreased our central overheads by over $6 million per year between late 2023 and mid-2024. Our executive team decreased from nine to five people with a significant corresponding decrease in overheads. Our board was decreased from seven or six to four, so by two. We reduced sales and marketing expenditures in the conversion business. Critically, and I think crucially, we preserved our technical and engineering capabilities to support our technology and IP portfolio.
I'm really grateful to all of our employees who have worked so diligently through these transitions over the last year and a half that I think we're really landing in a good place. I'd say that while implementing our overall streamlining of our operating footprint, we did increase our resource allocation and our commercial commitment to building a feedstock management supply business. While initially slow to start, the industry's pipeline of announced conversion plans, as I mentioned, is growing primarily for mixed waste plastic to pyrolysis type of applications. The plant footprints are growing, and there are several plants now scheduled to come online over the next few years. We do see a significant shortage in waste plastic feedstocks to meet that capacity, and we feel like we're very well positioned to step into that opportunity.
Just to summarize the three legs of Agilyx, really, we have Agilyx ASA as a holding company. Styrenix is our capital-light business that is commercializing our styrene monomer recycling technology. We'll speak a little bit more about that later. Plastics Limited is identifying EU waste plastic sources and preparing for a ramp in EU demand. Our Cyclyx JV is working to source, sort, and deliver advanced recycling feedstock through Cyclyx-owned facilities to meet recycling needs of ExxonMobil, LyondellBasell to start, and ultimately for other petrochem companies who are operating conversion operations in the US. I'm just going to mute all here because there's some background noise. By positioning our business to focus on the supply of waste plastic feedstock to all conversion technology platforms, we do remain technology agnostic, and that really decreases the risk associated with success of any one single solution.
At the same time, we are focused on our Styrenix platform within the conversion space as a really unique opportunity to create a solution for polystyrene recycling. This might be perhaps a useful visual for where we sit in the value chain, both Cyclyx and Styrenix. Cyclyx, as I mentioned, is sourcing, sorting, and custom compounding to meet the needs of advanced recycling companies, which are really in the second column. I often refer to it as referring to producing green oil or pyrolysis oil as a technical term. That green oil, pyrolysis oil, is replacing itself, replacing crude oil in the production of plastic. Plastic manufacturing companies, which is in the third column, need to decide whether to source green oil or crude oil to produce new plastic, and that's really a function of the demand from the market.
On the right, the packaging and the consumer brand companies, there's over 80 global brands and retail companies that have committed to recycled content targets in their packaging in 2025. There's an immediate need really from these customers, and they're placing demands and pressure on the plastic manufacturers who in turn are looking to the feedstock and product pyrolysis companies in the second column. To meet those demands, those companies are then looking for feedstock at reliable volume and quality. That market for provision of advanced recycling feedstock is really not well developed yet. Cyclyx is really a leader in the segment. We're already providing feedstock to ExxonMobil each month, and that will continue until we significantly increase scale when the first circularity center comes online later this year.
Taking a look at the market opportunity as we see it, McKinsey identifies total demand of brands' recycled content targets to be more than 14 million tons per year by 2030, which will require, by our estimate, about 20 million tons of feedstock, waste plastic feedstock. Total advanced recycling projects are only projected to be 7 million tons per year. You can see just between the difference between the 7 and the 14, there's a pretty major shortfall in supply of, or there will be a shortfall in supply of recycled plastic resins available for the brands. As a result, the margins are quite significant and available for those who participate in the marketplace. There is a premium paid for advanced recycled plastic over virgin. It can be over 100% of virgin prices in terms of uplift.
We see a really tremendous opportunity to take advantage of that marketplace and to take significant market share in supplying waste plastic feedstock. Agilyx is really uniquely positioned to build a market as really as the first industrial supply platform. We're focused on that 20 million tons of advanced recycling feedstock required to feed that demand. I just want to emphasize that this is a really large financial opportunity. If you just make a rough assumption of $250 a ton sale price of feedstock, that's a $5 billion market opportunity for those who wish to play there. At 10% margin, that's $500 million in potential profit. There will be other players in that market, but it's really a significant one, even though it's only now really emerging. We do have a first mover advantage through Cyclyx.
I think our partners there are really market leaders, and the credibility network that we have as a business and the technical expertise gives us a really unique opportunity to move forward there. Looking at it more granularly at our own business, as we've mentioned before, we are producing about 200,000. We are scheduled to produce in Cyclyx's first two facilities 200,000 tons of advanced recycling feedstock, which if we look at what ExxonMobil, Lyondell, who are partners of Cyclyx, have indicated as their potential needs and goals in 2028, about 600,000 tons. There is a 3x opportunity to increase volume from where we sit today just in terms of natural demand with existing partners. Of course, they have other places they're going for feedstock as well, but we have a good opportunity to participate there.
If we look at the EU where we've recently launched Plastics, the current estimates of what's in development for advanced recycling projects is about 560,000 tons by 2030, which will require about 1 million tons per year of waste plastic feedstock, which is a very significant increase over the current estimated availability of 65,000 tons. Just a huge opportunity to step in and try to solve for the needs before the market develops further. We are really prioritizing our resources to try to address that opportunity. During the year, as we've announced previously, Cyclyx did approve a second Cyclyx circularity center, this one in Dallas-Fort Worth. The project was FID'd in late 2024 to support that financing, which required a $135 million commitment by Cyclyx. There was therefore a $67.5 million financing, our 50% prorata from Agilyx.
We raised that capital in the Oslo market, and we raised a $40 million equity offering in August of 2024. We raised a $50 million green bond in November 2024 with primarily the proceeds to support that project, our share of that project. Also relative to the bond market, we're very pleased to have achieved first-time issuer status. We believe that access to the bond market will be a very valuable element of our financial strategy in the future. The first circularity center is being built in Houston, as we've mentioned. As we've previously communicated, ExxonMobil, LyondellBasell l will purchase 100% of the offtake from that facility to feed their requirements for advanced recycling feedstock. The project will produce approximately 100,000 tons of advanced recycling feedstock and 50,000 tons of mechanical, give or take.
The agreement is a 10-year cost-plus contract and provides profitability to Cyclyx from this first project. That is really a unique first-of-a-kind facility. Relative to update on the status of that Houston project, the project has completed several structural and equipment orders, and it is ramping up general contractor activities with an expectation of reaching mechanical completion at the end of the year. Since equipment has already been ordered and received, we do not anticipate material impacts from tariffs. I anticipate that is going to be a question that we will probably receive at the end of this presentation. There have been some delays since the original FID schedule, but we are generally, this is a first-of-a-kind. The facility is one of the largest of its kind, over 520,000 sq ft, more than seven times larger than the average municipal recycling facility of 70,000 sq ft.
After full commissioning, it will produce 150,000 metric tons, as I mentioned. It will be one of the largest facilities of its kind able to process post-use plastics for multiple recycling applications. Design updates and learnings are being incorporated into the facility and ultimately will better ensure its safety and operability. We are very grateful to ExxonMobil and LyondellBasell for their significant technical and project management assistance as Cyclyx brings the project to completion. We often receive questions from shareholders with regards to sourcing activities. Due to commercial sensitivities, it is challenging to discuss in much detail. However, the company is currently in an inventory ramp up to commissioning, and we are pleased to report that the Q1 pre-build inventory volumes are 20% ahead of schedule. Cyclyx will increase its contractual sourcing commitments as it approaches commissioning. The current sourcing pipeline, we are very comfortable.
It covers the target requirements and similarly with pricing, which is consistent with our expectations. Lastly, the second circularity center, which is in Dallas, was FID'd in November 2024. That continues with final engineering, and it will incorporate learnings from the Houston project before finalization. We anticipate mechanical completion in mid-2026. Lastly, on Cyclyx, we had a lot of changes on the strategic, sorry, on the leadership side of the business. Chris Yandell joined as CEO in December 2024. We are very confident that Cyclyx is in really great hands under Chris's leadership and also very grateful for his very diligent work, commitment, enthusiasm for the mission at Cyclyx. Cyclyx did earlier this week announce further additions to its leadership team. The company hired its first Chief Operating Officer, Walter Sopp, who brings really strong expertise in project execution and delivery.
It also hired a new VP of Commercial who brings global strategy and commercial expertise and hired a Chief Impact Officer, Leslie, who's been with us now for a few months, and while she was at ExxonMobil defined and led the lines to end waste plastic. Really talented people who are joining, a lot of good energy, and we're looking forward to working with this team over the next several years. Actually, one other point on Cyclyx is that it has also signed a lease for a new corporate headquarters in The Woodlands, Texas, a short drive north of Houston, and starting to centralize activities into that location. Switching gears to Plastics , while it was announced after year-end, we began work in 2024 to launch Plastics Limited, which really recognizes the opportunity presented by increasing EU demand for waste plastic feedstock.
The EU's PPWR, the packaging and packaging waste regulations, were implemented in early 2025 and are projected to increase demand for advanced recycling from 600,000 tons to well over a million tons by 2030 and upwards from that by 2040. There is a lot of anticipation and growth in that market segment that we are looking forward to be participants in facilitating. We have partnered with Circular Resources to bring plastics to market. Carlos Monreal serves as its Chairman of Plastics. He is the founder and former Chairman and CEO of Plastic Energy, which therefore brings really unparalleled experience in the advanced recycling market. We are working to identify waste plastic streams that can be prepared for delivery in 2027 as demand comes online.
We are now, for now, our investment in Plastics Limited is pretty modest, but really sufficient to engage a talented team of waste industry and chemical recycling executives who have really hit the ground running and leveraging their market knowledge and networks to identify potential sources. We're pleased to have early traction with Plastics Limited, including an MOU recently signed for 60,000 tons per annum of waste plastic for 2027 delivery. That's in collaboration with a major European waste company, and certainly we'll have more details to share as it progresses. I am personally very excited about this initiative. I think there's a lot to be done there, and there will be a lot more to share over the course of 2025. Styrenix, as I've mentioned, I think a few times today, we've continued to shift and emphasize our waste plastic feedstock sourcing businesses, which is really a defining priority.
At the same time, we do continue to commercialize our polystyrene conversion technology. It's unique. In 2024, we delivered a 10-ton per day facility, 10,000 tons per day facility to Toyo Styrene in Japan. In Q4, that project achieved its product specs and milestones, and we began the process of handover and training so that Toyo could operate the plant independently. That required updates to automation and controls, which are now complete, and we are in the process of switching to an ongoing support role under a maintenance contract where Toyo will fully operate the plant on its own, which I think is a really impressive milestone. I would say the Toyo facility in general is really truly impressive. Toyo's commitment to the project also included plastic sourcing but also building of dedicated purification and distillation units.
The produced styrene monomer is being mixed directly into their polystyrene production operation to make recycled content. To our knowledge, this is really the only currently operating commercial system for polystyrene and styrene recycling of this quality. In the chemical industry, of course, styrene is considered a small segment, but it is still an $80 billion a year business. Recycled styrene demand is expected to reach 30% of global demand in 2032. That is 18 million tons a year. It is a large opportunity for us, and we continue to go after it. To support that growth, we are investing in engineering and expanding the scale of our equipment design. We do have efforts going on in that domain. I would say an important goal of the polystyrene industry is reducing the carbon footprint of production.
To that end, we partnered with Sphera Solutions this last year to complete a carbon footprint analysis of our Styrenix technology. Sphera's results are in peer review, so they're not completely final, but the initial findings identified an up to 86% reduction in carbon versus traditional styrene produced from conventional fossil-based production. Since our systems are already electrified, the higher range of savings is really accessible to our customers using renewable energy as an input source. We are seeing real interest in the Japanese market from both Toyo Styrene and other players in that region with regards to additional facilities. As discussed earlier, we are maintaining a very rigorous cost focus with regards to sales and marketing, but we are actively pursuing interest in the region and licensing of our technology. We are also in discussions globally with styrene demand.
We have indicative interest in recycled styrene offtake of about 180,000 tons per annum just from the three largest prospective customers in our pipeline. That is volume equivalent to the production of 10 Styrenix plants. Agilyx remains committed to a capital-light model in its conversion business. Our path forward is to execute offtake agreements with parties with whom we already are in dialogue and then to raise outside capital into a joint venture that will develop these project opportunities similar to what we did with Cyclyx. That wraps up my comments for now. I would like to turn it over to Bertrand Laroche, Agilyx CFO, to provide his comments on our 2024 financials.
Thank you, Ranjeet. Good afternoon, everyone. Let me start with our 2024 financial performance shown here on slide 14.
Revenue declined from $5.9 million in 2023 to $1 million in 2024, primarily due to the Toyo Styrene project transitioning from active construction to commissioning. It's worth noting that Cyclyx generated $11.2 million of revenue last year, which is not consolidated in our financials as the JV is now accounted for under the equity method. On the cost side, we made meaningful progress. Total operating expenses declined 36% from $16.4 million to $10.5 million. This was driven by deliberate actions over the past 18 months to realign our team, simplify operation, and implement disciplined cost controls. Salaries alone dropped 42% with further reductions continuing into 2025. I want to acknowledge the tremendous commitment from our team, many of whom have taken on broader responsibilities to help us stay lean and effective, while now well-positioned with the right cost structure and resources to deliver on our growth plan.
In terms of profitability, we reported a net loss of $21.9 million in 2024 compared to a $96 million profit in 2023. As a reminder, 2023 net income included a one-time $118 million gain tied to the value of the IP contributed to Cyclyx. Following Cyclyx's $135 million capital raise in October 2023 to fund its first circularity center, Agilyx ownership stake declined from 75% to 50%, triggering deconsolidation. Cyclyx results are now reflected through our share of earnings in equity affiliates. The $22 million loss in 2024 mainly breaks down into a $10 million operating loss at Agilyx, a $9 million equity accounted loss at Cyclyx, and a $2 million non-cash loss from an adjustment to the value of the warrants due to our rising share price in 2024. Despite the accounting loss, we have created substantial value at Cyclyx.
Its assets more than doubled from $76 million to $197 million over 2024, mainly driven by funding for CCC1 and the initial $40 million capital call for CCC2, of which Agilyx contributed $20 million. Once the first two facilities now under construction reach steady-state operation, they're projected to generate $15.7 million in annual cash flows, with $12.8 million flowing directly to Agilyx, which will offer a strong foundation for long-term profitability. Turning now to the balance sheet, we ended 2024 with a strong cash position of $58.3 million, including $40.2 million of restricted cash from our green bond proceeds earmarked exclusively for CCC2. This follows our successful $40 million equity raise in August 2024 and $50 million green bond issuance in November 2024. Our current cash reserves fully fund our $67.5 million CCC2 commitment and give us flexibility to advance the key initiatives mentioned by Ranjeet at Styrenix and Plastics.
Looking ahead to slide 15, our priorities over the next 12 months are clear. At Cyclyx, we're focused on completing CCC1, progressing CCC2 towards mechanical completion, and working towards FID for CCC3. Feedstock qualification and contracting remain a key priority to support these facilities. On the Agilyx side, at Styrenix, we aim to launch a JV with a strategic partner and reach FID for our first commercial-scale polystyrene project. At Plastics, we will complete the European market mapping and begin initial feedstock deliveries. Financially, we will list our green bond on the Oslo Stock Exchange by September to enhance liquidity and continue advancing toward a dual listing in the US, which will further improve stock liquidity. Finally, we remain committed to tight cost discipline and continued reduction in operating expenses.
In summary, 2024 was a year of transition and foundation building, with major investments behind us and a lean-focused organization in place. We are entering 2025 well-positioned to scale and deliver long-term value. With that, I will end the call back to Ranjeet.
Thank you, Bertrand. Just to wrap up before Q&A, as we see it, it was helpful to review sort of the investment cases we see. Firstly, we are a first mover in a dynamic market. There is ARP stock supply not keeping up with advanced recycling capacity build-out in the market. That is an opportunity for us that we are really moving quickly to capitalize on. Our strategic partners have invested several times in Cyclyx over the last several years, and we think really provides validation for the business opportunity at Cyclyx.
As Bertrand mentioned, Agilyx will be cash flow positive in 2027 on the back of our initial projects coming online into production. Lastly, we really have benefited over the years from long-term shareholder support, which really provides stability and gives us the flexibility to pursue stable and well-thought-through strategic plans. That is what we had to present today, but we would be happy to take any questions from anyone who has any. Thank you. Adam, you want to—I know, were you—do you have the queue, or should I manage it? Adam, you want to go ahead?
Sure. I hope you can hear me all right. Yep. Yep. Go ahead. Thanks very much for a great presentation. Just a couple of questions.
One, I think the bond looks great, but I just really wondered about what the prospects for project financing are as Cyclyx deals at CCCs, and particularly what sort of things lenders might be looking for in terms of VPC wraps, length of offtake contracts, or would they look at merchant? Similarly, also on the feedstock side, would they look at getting contracts in place, or would they be happy to go merchant at that level? The second question, really just wondering, can you give us a feel for Cyclyx's thoughts on Europe, especially given the Plastics JV, and perhaps also do Plastics have any views outside Europe, or really they just entirely focus there? Thanks.
Bertrand, do you want to take the first question, and I'll take the second one relative to Cyclyx Europe and Plastics?
Sure.
In terms of funding, we do expect CCC1 and 2.9 to be able to access cheaper cost of capital to fund the future facilities. The first two facilities have taken up a 10-year offtake agreement, and we believe that 10-year framework with some option to renew for a successive five-year period provides a great framework for project lenders to get comfortable with the debt financing. I'll let you answer the second question, Ranjeet.
Thanks. Yeah. Just relative to Cyclyx Europe, Cyclyx right now is very focused on delivering its first couple of projects in Texas, in Dallas, and Houston. That's really the priority. I don't think that in the very near term they'll be deploying in Europe. Of course, the membership, the partners there, as well as the customers, Petrochem customers, global Petrochem companies who are potential customers are present worldwide.
There is a glide path when the time comes, but there's no immediate plans for Cyclyx to do that. Relative to Plastics, I think your question was, are we looking past Europe? Was that what you asked?
That's right, yes.
Yeah. I think right now we're very focused on Europe. I think we've got a local team here. We see an opportunity. We don't want to defocus too much, and it'll be some time before we start delivering waste plastic feedstock. For now, the focus is really Europe.
That's great. That's really clear. Thanks very much.
Helene, would you like to go next?
Yeah. Go ahead. She's probably on mute.
Can you unmute yourself, Helene?
There. Can you hear me now?
Yes, we can. Thank you.
Good.
I just wanted to touch up on Adam's question about project financing for further CCCs and just wanted to hear your thoughts around how progressed do you think that CCC1 would need to be to be able to get cheaper bank financing on a project level.
Bertrand?
I'm sorry. How progressed would they be?
Yes. Is it like do you think that do you think that banks need to see CCC1 being operative for a while, for instance, before getting project finance? Or how soon do you think that could be sort of possible? I guess banks need to get the case maybe a bit de-risked by seeing initial operations.
Understood. I think the bank will want to see a successful mechanical completion. Right now, we forecast mechanical completion for year-end 2025. After that, we have a six-month ramp-up period.
I think the banks will want to see the facility operating at or close to steady-state capacity, which should be towards the end of the first half of 2026. I think from that point on, we should be in a good position to issue some project lending at the project.
Yeah. That means that the earliest time for us to expect any new FID on another CCC is likely around mid-2026. Is that sort of right, or?
Yeah. Yeah. I think that's a fair assessment, Helena. The other element of that is that that's also roughly the time that the make-whole period on the bond expires, so there's more flexibility to refinance on the bond. That potentially also could help fund a C3 from the parent company level.
A combination of, as Bertrand mentioned, C1 operations, which gets project-level lenders and investors comfortable, and some more flexibility on our side at the parent, I think mid-2026 is a good estimate.
Okay. Thanks. Understood. I also wondered with respect to you saying that progressing CCC3 to an FID is also a priority now, I was wondering sort of how you see demand for that in the market now, and maybe also if you could add something about which type of companies that are showing that demand.
As we mentioned, I think C3 is still some time away, but yes, that's always on our mind is what's next. We are in Cyclyx's engaged with petrochem companies of large global scale who are looking for access to feedstock.
We've had a discussion, I think we've shared before, that some of that could actually come from C2 to the extent that we want to help people get involved with us sooner. Certainly, there is demand and interest in independent or additional dedicated CCCs for those parties. As I mentioned earlier in the presentation, ExxonMobil, Lyondell have made announcements as to what their requirements are in the next few years. Certainly, there's demand there that we would expect to find when the time comes to execute those projects.
Okay.
Thank you.
Any other questions? Any other questions? Is there any more? Anyone else have anything to ask? Okay. I think we're done. Ana, anything else we need to do to formally wrap up, or?
No, just to thank everybody for joining us today.
As we stated earlier, both the presentation and the recording of the presentation will be available on our website after a few hours later today.
Very good. Thank you, everyone. Thank you. Thank you. Thank you. Bye-bye.