Lignin Industries AB, a Swedish green technology firm, has successfully raised €3.9 million in new funding to expedite its commercialization and scaling efforts.

Source: PackWorld

The investment round was spearheaded by the Carrick family, who are the founders and majority owners of Lignin Industries. More than two dozen investors from various fields contributed to this funding round, with new stakeholders providing over 40% of the total investment.

Lignin Industries has developed Renol, a patented bio-based thermoplastic derived from lignin—the second most prevalent organic material on Earth, found in all plants, including trees. Renol aims to reduce the plastic industry's dependence on fossil fuel-based plastics.

Since its inception last year, Lignin Industries has garnered significant commercial interest, highlighted by its partnership with the UK-based leading compounder and distributor, Hellyar Plastics. This collaboration enables Lignin Industries to connect with a variety of customers across multiple sectors, including consumer electronics, home accessories, appliances, and construction. The company is also in advanced discussions with several manufacturers and has reached the Letter of Intent stage with industry leaders.

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 Founder and Chair of the Board Dr Christopher Carrick}

Moreover, Lignin Industries is gaining momentum with its e-commerce bags designed for fashion brands. These bags are made from a blend of lignin-based plastics and recycled materials, offering the same functionality as traditional fossil fuel plastic bags while significantly reducing CO2 emissions.