German biotech start-up Bioweg, which uses microbes and green chemistry to develop biodegradable alternatives to microplastics, has completed a new round of financing worth €16 million. The fresh capital will be used to drive forward the construction of a large production facility for bacterial cellulose in Lower Saxony, with the aim of replacing fossil polymers and microplastics in cosmetics and other areas. "This financing enables us to move into industrial production and rapidly roll out our solutions in the European market," says Prateek Mahalwar, co-founder and CEO of Bioweg.

Food by-products

Bioweg was founded in 2019 by Mahalwar and Srinivas Karuturi. The technology converts by-products and waste from the food industry into bacterial cellulose through fermentation. This is then refined into alternatives to fossil polymers. For this reason, production is to be located in the immediate vicinity of a sugar factory, according to the company. The company already operates a pilot plant with a capacity of up to six tonnes in Quakenbrück, Lower Saxony. Now, the aim is to accelerate growth and enable large-scale production. Bioweg also plans to modernise its pilot plant in Quakenbrück and expand its sales, regulatory and production teams.

Financiers optimistic

European restrictions on microplastic particles are already changing supply chains for personal and household care, pharmaceuticals and agriculture. Many customers expect EU-compliant, microplastic-free ingredients that are also manufactured on a large scale in the EU. Bioweg's technology platform is designed to meet this need and enable straightforward reformulation. According to the company, the biodegradable solution has very good sensory and physicochemical properties. "Bioweg combines strong regulatory tailwinds with a credible industrialisation plan and strong customer demand in key markets," says Marc Lechantre, partner at lead investor Axeleo Capital.