Swedish greentech company Lignin Industries AB has secured €3.9 million in new funding to fast-track its commercial scaling efforts, including a patented biobased thermoplastic. The funding round attracted over two dozen investors from diverse backgrounds, with more than 40% of the total contribution coming from new investors.
Lignin Industries has developed Renol®, a patented biobased thermoplastic derived from lignin—the second most abundant organic material on Earth, found in all plants. Renol® offers a sustainable alternative to fossil fuel-based plastics, reducing environmental impact.
Since emerging from stealth mode last year, Lignin Industries has gained significant commercial interest. Notably, it has partnered with UK-based Hellyar Plastics, working with multiple customers across sectors such as electronics, home goods, and construction. The company is also engaged in advanced discussions with industry leaders and is in Letters of Intent (LOI) with several manufacturers.
Additionally, the company is making strides in eco-friendly packaging—producing biodegradable e-commerce bags made from lignin-based plastics mixed with recycled materials, offering the same functionality as conventional plastic bags but with lower carbon emissions.
Dr. Christopher Carrick, Founder and Chair, emphasized the potential to reshape the global plastic industry by leveraging natural materials to produce sustainable, high-performance bioplastics. “By looking to the natural world, we can positively reform the global plastic industry. Our proprietary process takes an organic material—lignin—and upcycles it into a sustainable, high-performance bio-based thermoplastic”.
CEO Fredrik Malmfors highlighted strong commercial growth, onboarding new customers while fulfilling repeat orders from existing partners. “With continued investment in R&D, we look forward to further optimizing its use cases and applications, as demonstrated in recent collaborations with Scania, Vinnova, and other key strategic partners. Over the next few months, our focus will be on launching additional products to market and scaling our commercial operations.”
With this new investment, Lignin Industries aims to accelerate product launches, expand its market presence, and continue pioneering eco-friendly alternatives to traditional plastics.
