Bio-TPU maker raises $5m, partners with Trelleborg

Houston, Texas – US-based manufacturer of bio-based polyurethanes (PU), Algenesis has completed a $5-million (€4.7 million) fund-raising round.

The financing move was led by synthetic biology start-ups fund First Bight Ventures, and sustainability investment fund Circulate Capital.

Algenesis has developed a patented technology to produce renewable, "fully biodegradable and 'backyard' compostable" PU from plants and algae.

The fund raising round follows a $5 million grant from the US department of energy to scale up the production of biobased isocyanates from algae oils using a “green-flow chemistry process”.

The investment will help the company continue works towards evolving its product to be 100% bio-based, according to Algenesis' 26 Oct announcement.

The company's Soleic branded materials are currently available in soft foam applications, such as midsoles and insoles for footwear.

The new funds will also be used to expand Soleic product lines into breathable waterproof textiles, and injection-moulded products such as phone cases.

Algenesis also plans to expand and strengthen its supply-chain by bringing more of its processes in-house, towards scaling up production and commercialisation of its materials.

The investment round follows a recent collaboration agreement between Algenesis and Swedish polymer major Trelleborg AB.

Last month, the two companies entered a partnership for the supply of bio-based TPUs to coat fabrics across various industries, from aerospace to outdoor and recreation.

The partners aim to offer “a viable, price-competitive TPU-coated fabric alternative” and create sustainable TPU polymers specific to Trelleborg's applications.

The collaboration, Trelleborg added, can result in both a reduction of microplastic pollutants in the environment and lower costs for customers.

Initial trials have shown that Algenesis' polymer performs similarly to established solutions within existing process, the Swedish polymer group added.

According to Algenesis, 25 million tonnes of polyurethanes are manufactured annually for extensive use across footwear, medical, and textile industries.

Due to the material's composition, polyurethane is hard to recycle and primarily ends up in landfills or as microplastics in the environment, the US company added.

Unlike petroleum-based polyurethanes, Algenesis bio-PU is claimed to be biodegradable in compost “within a matter of months.” 

The material’s production process is also claimed to reduce greenhouse gas emissions by 50% compared to producing petroleum-based PU.