PlantSwitch, a North Carolina-based materials company, has secured $8 million in funding to commercialize its bioplastics technology. The investment will be used to construct their first commercial manufacturing facility and expand their team from 12 to an undisclosed number. The Sanford facility is anticipated to produce approximately 22,000 tonnes (50 million pounds) of resin annually, spanning 52,000 square feet. The facility is expected to commence operations in 2025.
PlantSwitch has developed a potentially sustainable and low-cost, fully compostable ‘drop-in’ plastic substitute sourced primarily from agricultural residues such as rice hulls. The material is used in containers and eating utensils applications and caters to leading brands and manufacturers in food service, consumer packed goods, cosmetics, and agricultural products.
High production costs have limited bioplastics to a niche market; however, PlantSwitch aims to make biopolymers cost-competitive. The company claims using agricultural waste as feedstock allows it to be ‘the lowest-cost plastic alternative on the market.’ Its resin can be used as a ‘drop-in’ replacement for fossil-based plastics in existing machinery with ‘negligible’ additional costs, according to the company. The material reportedly disintegrates fully in backyard compost within 12 months, leaving no microplastics behind.
The bridge financing round was supported by NextPoint Capital, an investor and climate tech platform. PlantSwitch plans to raise a Series A funding in 2024 to expand capacity with additional manufacturing facilities.
“Major corporations have committed to reducing their plastic consumption and the associated waste,” said PlantSwitch CEO Dillon Baxter. “However, the necessary infrastructure to provide a viable alternative has been lacking. This $8 million investment, in partnership with NexPoint, will help build this infrastructure, driving the alternative plastics market forward. We believe the infrastructure for compostable bioplastics is crucial for our economy, health, and planet. That’s why we are focused on building it in a scalable and cost-effective manner,” he concluded.
