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Swedish green tech company Lignin Industries AB has raised €3.9 million in fresh funding; as the company accelerates its commercialization and scale-up plans.
The investment round was led by the Carrick family, Lignin Industries’ founders and majority owner. The round was supported by over two dozen investors, drawn from multiple areas of expertise and profession. In total, new owners contributed with over 40% to the round.
Lignin Industries has created Renol, a patented bio-based thermoplastic which is derived from lignin, the second most abundant organic material on Earth (found in all plants, e.g. trees). Renol is attempting to end the plastic industry’s reliance on fossil fuel-based plastics.
Lignin Industries has secured commercial interest since emerging last year. One example is the partnership with UK-based leading compounder and distributor Hellyar Plastics. By working with Hellyar, Lignin Industries is collaborating with numerous customers, spanning sectors such as consumer electronics, home accessories and appliances, as well as in construction. In addition, Lignin Industries is in advanced dialogue with numerous manufacturers and at LOI stage with category leaders.
Finally, Lignin Industries are gaining traction with their e-commerce bags sold to fashion brands. Produced with lignin-based plastics mixed with recycled plastics, these bags deliver the same functionality as conventional fossil plastic bags but with lower CO2 emissions.
Lignin Industries Founder and Chair of the Board Dr Christopher Carrick said: “Lignin Industries exists to show another way is possible: that by looking to the natural world, we can positively reform the global plastic industry. Our proprietary process takes an organic material and upcycles it into a sustainable, high-performance bio-based thermoplastic. With an abundant feedstock and the ability to fit within existing plastics infrastructure and processes, widespread adoption is underway.”
Lignin Industries CEO Fredrik Malmfors said: “ We are enjoying commercial cut-through, onboarding new customers while fulfilling repeat orders from existing partners and customers . Feedback is positive, Renol works in the field and commercially, and with our continued investment in R&D we look forward to further optimizing its use cases and applications, as seen in recent collaborations with Scania and Vinnova, among other key strategic partners. The next few months is about bringing additional products to market and scaling our commercial operations.”
