Bioweg, a German biotechnology firm, has raised $18.9 million in Series A funding to scale production of its biodegradable alternatives to microplastics, including seed and fertilizer coatings for agriculture. The investment will fund construction of the company’s first industrial-scale bacterial cellulose plant in Germany.
The round has been led by Axeleo Capital, joined by the EIC Fund, NBank Capital, BonVenture, and seed investor Dr -Ing. Frank Jenner. The company develops high performance, biodegradable material substitutes for acrylic polymer based microplastics. The funding will support construction of Bioweg’s first industrial scale bacterial cellulose plant in Germany, fast tracking its penetration into the European market.
Bioweg was founded in 2019 by Dr Prateek Mahalwar and Srinivas Karuturi, it processes food industry side streams into bacterial cellulose via precision fermentation, refining it with green chemistry into drop in alternatives to fossil based polymers. The company operates a pilot plant production site in Quakenbrück, with a capacity up to six tonnes, as well as a material science, formulation and applications lab in Monheim within Bayer Crop Science’s campus.
Bioweg Scales Under EU Regulatory Framework
The EU has implemented a broad range of restrictions on intentionally added microplastics, through its Commission Regulation (EU) 2023/2055, which came into effect on October 17, 2023. This regulation places restrictions on sale of microplastics as standalone items and in products that release them during use such as seeds coated with microplastics and certain fertilizers. These restrictions are reshaping ingredient supply chains across agriculture, personal care, home care, and pharmaceuticals. The services of Bioweg enable production of high performance ingredients that comply with EU microplastics regulations.
The funding allows us to move decisively into industrial manufacturing and to support customers as they transition away from microplastics. Our focus is on matching and expanding polymer-level performance with bio-based, biodegradable ingredients produced at European scale.
The latest funding round brings the total amount raised by Bioweg to date to US $23.6 million (€22million), which will facilitate upgrade from pilot to industrial production, including the bacterial cellulose plant, established to meet the rising demand of industrial customers in sustainable microplastics free-ingredients.
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The institution of new facility will facilitate transition from current 6,000 litre fermentation scale to large volume manufacturing. The plant will be co-located with a major sugar producer in Germany to secure feedstock synergies and lower operating costs. Bioweg will also revamp Quakenbrück pilot line to serve near-term customer orders during construction of the new facility.
Product Portfolio Secures Investment
Bioweg’s product pipeline’s features AgriWeg, seed and fertilizer coatings enabling controlled release and enhanced handling, Micbeds, biodegradable micro powders used for cosmetics, delivering premium sensory performance, HydroWeg, bio based and sustainably derived single ingredient hydrocolloid for plant based foods, and RheoWeg, bio based rheology and suspension control solutions designed for personal and home care. By scaling its production capacity in Germany, Bioweg aims to certify its supply for industrial customers and actively support product realignment initiatives across the European continent.
BIOWEG combines a compelling regulatory tailwind with a credible industrialisation plan and strong customer pull on key markets. We’re backing the team as it’s perfectly positioned within the ongoing transformation of supply chains towards microplastic-free products.
Michael Kiesewetter, NBank’s Chairman of the Board stated that Bioweg’s business model has the potential to increase the sustainability of important markets across product lines such as cosmetics, cleaning products, and seeds. He further added that the firm is delighted by the prospect of the Bioweg investment as it will not only create high quality jobs, and it will also prepare the state of Lower Saxony for the economic dynamics of evolving marketplace.
Viktoria Vorwachs, Investment Manager at NBank Capital, also shared her optimism regarding the functioning of Bioweg as an entrepreneurial and expertise based venture. She said that Bioweg’s bio-based and highly scalable solution is an urgent need of the market and new round of founding will finally enable the company to successfully enter the market after years of preparation and product development.