Bioweg scales biodegradable microplastic alternative ahead of EU target

Bioweg, a German biotechnology company developing biodegradable ingredients to replace intentionally added acrylic polymer-based microplastics, has closed a €16 million (US$18.8 million) Series A round. 

The company converts food industry side streams into bacterial cellulose using precision fermentation. Its technology can refine side streams with green chemistry into drop-in alternatives to fossil-based polymers. The company says there are “clear opportunities” in coatings, films, and other functional packaging applications.

The capital will enable the scale-up, commercialization, and construction of Bioweg’s “first-of-its-kind” bacterial cellulose plant in Germany and accelerate market entry across Europe.

Prateek Mahalwar, Bioweg co-founder and CEO, tells Packaging Insights: “The challenge in packaging is balancing durability with true biodegradability, and bacterial cellulose can offer that bridge. It’s on our long-term roadmap once we have scaled our first markets.”

He identifies regulatory frameworks as a key driver, as the European Commission has set the target to reduce microplastics pollution by 30% by 2030. 

Prateek Mahalwar, Bioweg co-founder and CEO.“This regulatory tailwind directly accelerates the adoption of Bioweg’s biodegradable solutions. By engineering ingredients that combine high functionality (for example, rheology modifiers, micropowders) with less than 60-day biodegradability (OECD tested), Bioweg enables customers to stay ahead of regulation,” says Mahalwar.

Consistent quality at industrial scale

The financing round was led by Axeleo Capital — Green Tech Industry Fund joined by the EIC Fund, NBank Capital, BonVenture, and seed investor Dr.-Ing. Frank Jenner. The latest round has brought the total amount raised by the company to date to €22 million (US$25.8 million). 

“Fermentation-derived cellulose production requires careful optimization of strains, feedstocks, and downstream chemistry. At the pilot stage, production costs can be relatively high, but Bioweg has modeled a clear path to bring this down to an industrial 6,000-ton scale through economies of scale, process optimization, and integrated feedstock use,” explains Mahalwar.

“To ensure consistent quality, we are building a strong team where quality control (QC) is treated as a core pillar of scale-up. Beyond R&D and production, we are investing in dedicated QC professionals to ensure reliability at every stage.” 

“Our processes are being aligned with ISO standards and food-grade fermentation QC practices to secure consistent quality at an industrial scale. With a successful pilot plant and active commercial feedback from clients, we continuously validate performance as we grow.”

Collaboration with Bayer Crop Science

The company runs a pilot production facility in Quakenbrück, Germany, with a capacity of up to six metric tons, along with a material science, formulation, and applications lab located on Bayer Crop Science’s campus in Monheim, Germany.

The plant design offers a pathway from the current 6,000-liter fermentation scale to large-volume manufacturing and is planned to be co-located with a major sugar producer in Germany to secure feedstock synergies and lower operating costs.

Mahalwar shares: “Locating production alongside a major sugar producer allows Bioweg to secure a stable, low-cost, and circular feedstock stream. This model directly reduces logistics emissions and ensures waste or side streams from the agri-food industry are valorized instead of discarded.”

“By shortening supply chains and anchoring operations in an industrial symbiosis model, Bioweg lowers capital expenditure and operating expenses as well as its CO2 footprint, while safeguarding against volatility in raw material prices.” 

“This fits squarely with Bioweg’s sustainability mission: enabling fossil-free, biodegradable materials at scale while cutting emissions from production and end of life. It also builds customer trust that sustainability is embedded not just in the product, but in the manufacturing system itself.”