Swedish greentech company Lignin Industries has announced the raising of €3.9 million in funding to accelerate the scale-up of its bio-based thermoplastic derived from trees, aiming to end reliance on fossil fuel-based plastics.
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, with new owners reportedly contributing over 40% to the round.
Lignin Industries says its patented bio-based thermoplastic, Renol, is derived from lignin, an organic material found in all plants. The company has partnered with UK-based compounder and distributor Hellyar Plastics to work with customers across sectors including consumer electronics, home accessories, appliances and construction.
The company has also developed e-commerce bags sold to fashion brands, produced with lignin-based plastics mixed with recycled plastics. The bags are said to deliver the same functionality as conventional fossil plastic bags but with lower CO2 emissions.
In similar news, last year Södra revealed it would supply Stora Enso with kraft lignin from the ‘world’s largest’ production facility coming to Sweden in 2027 – anticipating a production capacity of up to 250,000 tpy of kraft lignin. The investment was supported by the Swedish Energy Agency and is part of the EU Recovery and Resilience Facility (RRF) and Next Generation EU.
Also in 2024, AGC Vinythai and Michigan State University’s Prof. Mojgan Nejad worked alongside allnex to increase the biobased content of epoxy resins and coatings by replacing the traditional bisphenol A (BPA) with lignin. Lignin, biobased epichlorohydrin, and biobased hardener were combined to achieve ‘comparable thermochemical performances to a BPA-based resin’.
If you liked this story, you might also enjoy:
The ultimate guide to the Packaging and Packaging Waste Regulation in 2025
How are the top brands progressing on packaging sustainability?
Everything you need to know about global packaging sustainability regulation in 2025
The key to increasing the use of reusable packaging in supermarkets
No comments yet