Lignin Industries Funding News- Sweden’s Lignin Industries Raises €3.9Mn Funding

As industries push to move away from fossil-based plastics, Renol is gaining attention in areas like fashion and construction. The funding round was led by the Carrick family, the company’s founders and majority owners, along with support from more than 20 private investors across various sectors. New investors contributed over 40% of the total raised.

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With rising climate regulations and consumer demand for greener materials, Lignin Industries aims to make Renol a practical and scalable alternative to traditional plastics.

“This round will enable us to ramp up our production and commercial efforts, and deliver sustainable solutions that meet industry performance expectations while reducing environmental impact,” said the company in its announcement.

Lignin Industries has teamed up with UK-based Hellyar Plastics, a distributor and compounder, to bring its lignin-based materials to customers in sectors like electronics, home goods, construction, and appliances.

One of its standout products is an e-commerce bag made by mixing Renol with recycled plastics. These bags, aimed at fashion brands, offer the same performance as fossil-based packaging but with lower carbon emissions.

This move toward lignin-based solutions is part of a wider shift in Europe. In 2023, companies Södra and Stora Enso announced plans to build the world’s largest kraft lignin production plant in Sweden, set to open in 2027.

The project is backed by the Swedish Energy Agency and the EU’s Recovery and Resilience Facility, and is expected to produce up to 250,000 tonnes of lignin annually.

Other innovators are also using lignin to replace traditional chemicals. In 2024, AGC Vinythai and allnex, alongside Prof. Mojgan Nejad of Michigan State University, developed epoxy resins and coatings using lignin as a bio-based alternative to BPA, with similar performance.

Lignin is gaining attention for its potential to replace petroleum-based ingredients in plastics, adhesives, and coatings. Though it was once seen as a waste product from the paper and pulp industries, its abundance and eco-friendly properties now make it a key player in the shift toward sustainable materials.

With the recent funding, Lignin Industries plans to grow its operations and reach more markets, strengthening Sweden’s position as a leader in next-generation bioeconomy innovation.

About Lignin

Lignin Industries is a greentech startup from Stockholm that creates eco-friendly materials using lignin, a byproduct of the paper industry. Their main product, RENOL, is a bio-based alternative to fossil-based plastics.