As pressure mounts to eliminate fossil-based plastics, Lignin Industries’ lignin-based thermoplastic gains traction across industries from fashion to construction.
Stockholm-based greentech Lignin Industries has raised €3.9 million in funding to accelerate the commercial scale-up of its patented Renol thermoplastic - a bio-based material derived from lignin, a natural polymer found in all plant matter.
The round was led by the Carrick family, founders and majority owners of the company, and supported by over two dozen private investors from diverse sectors. New investors accounted for more than 40 percent of the round, according to the company.
The funding comes as manufacturers across Europe seek sustainable alternatives to fossil-derived plastics, driven by both climate regulations and consumer demand. Lignin Industries aims to position Renol as a functional, scalable replacement for conventional thermoplastics used in everyday applications.
“This round will enable us to ramp up our production and commercial efforts, and deliver sustainable solutions that meet industry performance expectations while reducing environmental impact,” said the company in its announcement.
The company has partnered with UK-based Hellyar Plastics, a compounder and distributor, to deliver its lignin-based materials to customers in consumer electronics, home goods, construction, and appliances. One of Lignin Industries' key products includes e-commerce bags made by blending Renol with recycled plastics, targeted at fashion brands seeking lower-emission packaging options. These bags reportedly deliver the same functionality as traditional fossil-based alternatives, with reduced CO₂ footprints.
The push toward lignin-based alternatives reflects a growing industrial shift in Europe. In 2023, Södra and Stora Enso announced the development of what is expected to be the world’s largest kraft lignin production facility, located in Sweden and slated for completion in 2027. The project, supported by the Swedish Energy Agency and the EU’s Recovery and Resilience Facility, anticipates an annual output of up to 250,000 tonnes of lignin.
Meanwhile, other materials innovators are exploring lignin as a base chemical. In 2024, AGC Vinythai and allnex, working with Michigan State University’s Prof. Mojgan Nejad, developed epoxy resins and coatings with comparable properties to BPA-based formulations, using lignin as a key biobased substitute.
Lignin’s appeal lies in its abundance and potential to replace petroleum-derived inputs in plastics, adhesives, and coatings. While historically underutilised - often a waste product of the paper and pulp industries - lignin is now gaining recognition as a critical component in the green transition of materials science.
With its new funding, Lignin Industries plans to scale operations and expand its market reach, reinforcing Sweden’s growing reputation as a hub for next-generation bioeconomy innovation.
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