Imagine a fashion brand seeking packaging that matches its sustainability goals or a consumer electronics company searching for a low-carbon plastic that meets performance standards. Lignin Industries is answering those demands with Renol®, a renewable plastic that mimics the functionality of fossil-based plastics but with a far lower environmental footprint. Already, the company is gaining traction through partnerships and product deliveries, with its newest funding round poised to accelerate adoption across multiple sectors.
Sustainable plastic alternatives continue to reshape the future of materials science as Sweden’s Lignin Industries announces €3.9M in new funding. The fresh capital will support the company’s commercialisation and help it scale Renol®, its patented thermoplastic made from lignin, a naturally abundant organic polymer in all plants.
The €3.9M investment round was led by the Carrick family, Lignin Industries’ founders and majority shareholders. Over two dozen additional investors participated, bringing a wide range of professional and technical expertise. Notably, more than 40% of the capital came from new backers. While individual investor names were not disclosed, the diversity of backgrounds suggests growing confidence in sustainable plastic alternatives as a viable industrial solution.
This latest funding brings Lignin Industries’ total capital raised to date to undisclosed levels, though the new round signals strong investor belief in the company’s commercial readiness and global potential.
Sustainable plastic startup born from forestry legacy and academic innovation
Founded in 2018, Lignin Industries is rooted in cutting-edge science and a generational legacy in forestry. The company’s founder and Chair of the Board, Dr Christopher Carrick, developed the patented Renol® process through academic research that intersects with his family’s five-generation history in the European forest industry. Based in Knivsta near Stockholm, the company transforms residual forestry materials into renewable plastics through green chemistry.
Dr Carrick explained the mission behind Lignin Industries: “Lignin Industries exists to show another possible way: by looking to the natural world, we can positively reform the global plastic industry. Our proprietary process turns an organic material into a sustainable, high-performance bio-based thermoplastic. With an abundant feedstock and the ability to fit within existing plastics infrastructure and processes, widespread adoption is underway.”
CEO Fredrik Malmfors added: “We are enjoying commercial cut-through, onboarding new customers while fulfilling repeat orders from existing partners and customers. Feedback is positive – Renol® works in the field and commercially – and with our continued investment in R&D, we look forward to further optimising its use cases and applications, as seen in recent collaborations with Scania and Vinnova, among other key strategic partners. The next few months are about bringing additional products to market and scaling our commercial operations.”
How Lignin competes in the fossil-plastics replacement race
Lignin, an organic polymer found abundantly in trees, provides plants with structure, aids in water retention, and acts as a natural barrier against toxins. Remarkably, approximately 80 million tonnes of lignin are processed globally each year, making it one of the largest natural by-products on earth. Yet, 99% of this lignin is burned for energy rather than utilised for higher-value applications.
Lignin Industries chemically transforms this underutilised resource into Renol®, a hydrophobic polymer with improved thermal resistance through its patented process. The company produces the material in Knivsta, just outside Stockholm, using an extruder-based continuous process that releases no toxic emissions or hazardous residues.
Renol® stands out in the bioplastics landscape for its versatility and compatibility with existing plastic manufacturing infrastructure. The material can be successfully integrated into polyethene (PE), polypropylene (PP), and acrylonitrile butadiene styrene (ABS) applications with adjustable infusion rates between 15% and 30% to accommodate diverse needs.
This adaptability is crucial for commercial adoption, as it eliminates the need for manufacturers to invest in new equipment. The material can be processed using standard converting machinery, making it an accessible option for companies looking to increase their sustainability profile without compromising on quality or efficiency.
Perhaps most impressive is Renol®’s environmental impact: Lignin Industries claims the material is 100% bio-based and carbon-negative. It can produce carbon-neutral end products when combined with recycled materials or other biomaterials. According to company data, every kilogram of fossil-based plastic replaced by Renol® reduces CO₂ emissions by 3-6 kg, depending on which fossil material is being substituted.
Looking ahead to sustainable market expansion and product growth
Lignin Industries has formed strategic partnerships with established industry players to accelerate market adoption. A recent collaboration with Hellyar Plastics, an independent UK-based compounder and distributor of polymers, aims to introduce and scale Renol® technology commercially. This partnership will leverage Hellyar’s expertise in polymer compounding to expand Renol®’s market presence.
Previously, Lignin Industries (then operating as RenCom) worked with Coperion to implement a state-of-the-art twin screw extrusion system that enabled the initial production of Renol®. This collaboration helped refine the material’s processing parameters and set the stage for scaled production.
The company also collaborates with Scania and Vinnova, among other strategic partners, to further optimise Renol®’s applications and performance characteristics. These relationships provide valuable feedback and validation from potential end-users across multiple industries.
As global industries increasingly seek sustainable alternatives to conventional plastics, Lignin Industries’ Renol® represents a compelling solution that bridges environmental responsibility with commercial viability. By transforming an abundant natural by-product into a high-performance material compatible with existing manufacturing infrastructure, the company has created a pathway for industries to reduce their carbon footprint without sacrificing quality or efficiency.
