Danish biotech startup Cellugy has secured $9.25m funding to support scaling up the production of its biofabricated cellulose-based rheology modifier material, EcoFLEXY.
The investment comes in the form of a grant from the LIFE Programme, the European Union’s funding instrument for projects supporting environment and climate action.
EcoFLEXY is designed to replace fossil-based carbomers, known as harmful microplastics, significantly reducing environmental pollution and the use of hazardous chemicals in the cosmetics sector.
The material is said to offer superior performance and previously unachievable functionalities compared to existing biobased ingredients, such as xanthan and cellulose gums, while eliminating the handling challenges associated with plant-nanocellulose alternatives.
The biofabricated cellulose material delivers enhanced stability, compatibility, and sensoriality, critical factors for cosmetics manufacturers who cannot compromise on product quality while meeting growing sustainability demands.
“An alternative material that simply aims to be more sustainable is not enough; the critical challenge is about delivering bio-based solutions that actually outperform petrochemicals in performance parameters like texture, functionality, and user experience, while also being scalable and operationally efficient,” said Dr. Isabel Alvarez-Martos (pictured, right), CEO and co-founder at Cellugy.
”Good intentions won't drive industry change; we need higher-quality alternatives like EcoFLEXY that make it easier, not harder, for brands to choose sustainability. Only when bio-based materials match or exceed the performance and economics of traditional ingredients will we see the transformation needed to protect both human health and our planet."
The BIOCARE4LIFE project will drive EcoFLEXY's scale-up process through the work of a specialist consortium of experts in biotechnology, sustainability, and data management: The Footprint Firm, a consultancy company focused on circular economy solutions and environmental impact validation, and Sci2sci, a Berlin-based startup specialising in data management, machine learning, and AI-driven process optimisation.
The $9.25m project will fund critical scaling activities, process optimization, and commercial validation over a four-year period.
"This grant provides the resources we need to transform our vision into reality. Within three to five years, we expect to be generating significant revenue while delivering a measurable environmental impact. Our end goal is sweeping petrochemicals from an industry worth billions, and we now have the backing and the partnerships to make it happen,” added Alvarez-Martos.
