Swedish bioplastics manufacturer Gaia Biomaterials has successfully concluded a $5 million rights issue. The rights issue is backed by the Swedish state owned greentech venture capital fund Almi Invest Greentech, and private international and domestic investors. Funds will be used to expand market penetration in the United States, India, and other targeted markets.
Gaia Biomaterials is unique as the company’s home-compostable material, Biodolomer, is based on limestone, one of the most commonly available minerals on earth. Biodolomer can replace fossil plastic in everything from drinking cups to grocery bags. It is fully compostable with a minimal carbon footprint and does not result in any micro-plastics during the composting process,
“We have a revolutionary and proprietary technology, we have the production capacity, and we have done our market testing,” says 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.”
One of the key investors is the Swedish state-owned greentech venture capital fund, Almi Invest Greentech.
“We look for great commercial and environmental potential combined” says investment manager Jörgen Bodin. “Although we look at about 300 companies yearly we only invest in a handful”“Gaia Biomaterials has a proven track record of living up to its promises. Their product has an enormous potential as it is both climate-positive and will reduce waste and microplastics.”
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.
“There are very few limits,” Stenström continues. Our material can be used in various production techniques, including film blowing, bottle blowing, thermoforming, injection, and extrusion coating, with no changes in machinery. This makes it easy for brand owners to drastically reduce their CO2 emissions and reduce the waste mountain problem.Today, Gaia has a production capacity that can be scaled up to 50,000 tons/year within the existing structure.
"The need for plastic replacement is recognized globally, and we are witnessing tremendous interest in our offerings. Responding to the high demand from brand owners, we are currently expanding our network of commercial agents worldwide."