PlantSwitch announced it has raised $8 million to commercialise its bioplastics technology.
The North Carolina-based materials company will use the funding to build its first commercial manufacturing facility and expand its 12-person team. The Sanford plant is expected to produce over 22,000 tonnes (50 million pounds) of resin per year and span 52,000 square feet. Commissioning is expected by 2025.
PlantSwitch has developed what it claims is the most sustainable, lowest-cost, completely compostable ‘drop-in’ plastic replacement, sourced from the abundant supply of agricultural residues — mainly rice hulls. Its material is used in containers and eating utensils applications. Its customers include some of the leading brands and manufacturers in food service, consumer packed goods, cosmetics, and agricultural products.
High production costs have so far limited bioplastics to a niche market, but PlantSwitch promises to make biopolymers cost competitive. The company says using agricultural side streams as feedstock allows it to be ‘the lowest cost plastic alternative on the market’. Its resin can be used as ‘drop-in’ replacement to fossil-based plastics in existing machinery, with ‘negligible’ costs, according to the company. The material reportedly fully breaks down in backyard compost in less than 12 months, leaving no microplastics behind.
The bridge financing round was supported by NextPoint Capital, an investor and climate tech platform. PlantSwitch is now gearing up for its 2024 Series A fundraise, which will be used to expand capacity with additional manufacturing facilities.
“Major corporations have made commitments to lower their plastic consumption and the toxic waste it produces, but the proper infrastructure to deliver a viable alternative hasn’t existed,” said PlantSwitch CEO Dillon Baxter. “This $8 million raise, in partnership with NexPoint, is being invested in building out this infrastructure, which will drive the alternative plastics market forward. We believe the infrastructure for compostable bioplastics is critical to the future of our economy, our health, and our planet. That’s why we are on a mission to build it in a way that is scalable and cost competitive,” he concluded.