Sweden-based Lignin Industries AB, a company in the greentech sector, has raised €3.9M in a funding round to support its commercialisation and scaling plans.
The company transforms lignin into renewable biomaterials that replace fossil-based plastics and support net-zero CO2 products.
Lignin is a complex organic polymer found in the support tissues of most plants. It strengthens cell walls, especially in wood and bark, and resists decay.
The round was led by the Carrick family, who founded the company and hold a majority ownership stake. More than 20 additional investors from various sectors took part in the round, with new investors contributing over 40 per cent of the total capital.
Turning forest residues into renewable solutions
Founded in 2018, Lignin Industries builds on five generations of involvement in the forest industry. The company’s technology is based on the academic work of founder Dr. Christopher Carrick and his connection to the European forestry sector.
Lignin Industries uses green chemistry to convert forest industry residues into biobased thermoplastics. Its patented product, Renol, is made from lignin, a widely available plant polymer.
Renol can be used in applications such as polyethylene films, propylene moulds, and ABS moulds. The company’s production plant and main office are located in Knivsta, near Stockholm.
Dr Christopher Carrick says, “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.”
Since emerging from stealth last year, Lignin Industries has attracted commercial interest, including a partnership with UK-based compounder and distributor Hellyar Plastics. Through this collaboration, the company is working with customers across sectors such as consumer electronics, home accessories, appliances, and construction.
Lignin Industries is also in advanced discussions with multiple manufacturers and has reached the letter of intent stage with category leaders.
Lignin Industries CEO, Fredrik Malmfors, adds, “We are enjoying commercial cut-through, onboarding new customers while working in the field and fulfilling repeat orders from existing partners and customers.”
“Feedback is positive – Renol commercially – and with our continued investment in R&D, we look forward to further optimising its use cases and applications, as seen in recent collaborations with Scania and Vinnova, among other key strategic partners. The next few months are about bringing additional products to market and scaling our commercial operations.”
Additionally, Lignin Industries is gaining momentum with its e-commerce bags, now offered to fashion brands. These bags are made from a combination of lignin-based and recycled plastics, providing the same functionality as traditional plastic bags while reducing CO2 emissions.
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