Swedish bioplastics manufacturer Gaia Biomaterials has raised $5 million through a rights issue. Backers include the Swedish state owned greentech venture capital fund Almi Invest Greentech, and private international and domestic investors.
The extra capital will fund the company’s expansion into the US, India, and other ‘target markets’, Gaia said in a statement.
Gaia manufacturers its trademark biopolymer Biodolomer at its site in Helsingborg, Sweden.
The material is made of the calcium carbonate found in limestone, sugar cane, vegetable oils, and ester. It is fully home compostable, leaves no microplastics behind, and results in 80% less carbon dioxide emissions, according to Gaia Biomaterials. Its applications include food packaging, grocery bags, plant pots, and fishing nets.
“We have a revolutionary and proprietary technology, we have the production capacity, and we have done our market testing,” said Peter Stenström, CEO. “Now, the time has come to expand our market presence. We will use our funds to expand our global network of commercial agents and train and support them.”
Biodolomer can be used in various production techniques, including film blowing, bottle blowing, thermoforming, injection, and extrusion coating, with no changes in machinery. Gaia currently has capacity to scale up its production to 50,000 tonnes/year within the existing structure.
Gaia’s material was recently used in beer cups for the Formula 1 final in Abu Dhabi. It is also used in a variety of disposable products to replace fossil plastic, from health-care aprons to drinking straws, food containers, and planting pots. In addition to pellets, the company produces grocery bags, aprons, and other products for the Swedish market on site.