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# Lignin Industries raises €3.9 million to commercialize bio-based thermoplastic
- URL: https://packaging-europe.ghost.io/lignin-industries-raises-39-million-to-commercialize-bio-based-thermoplastic/
- Published: 2025-05-13T06:33:00.000Z
- Updated: 2025-05-22T21:20:39.000Z
- Author: Packaging Europe staff writers
- Tags: Business, Sustainability, Featured Stories, Emerging Technologies, #layout-s, #type-article, #packaging-europe, #Import 2026-09-08 15:50

**Swedish greentech company** [**Lignin Industries**](https://www.lignin.se/?ref=packaging-europe.ghost.io) **has announced the raising of €3.9 million in funding to accelerate the scale-up of its** [**bio-based thermoplastic**](https://packagingeurope.com/features/meet-the-swedish-company-creating-bio-based-plastic-from-forest-residue/11790.article?ref=packaging-europe.ghost.io) **derived from trees, aiming to end reliance on fossil fuel-based plastics.**

The investment round was led by the Carrick family, Lignin Industries’ founders and majority owner. The round was supported by over two dozen investors drawn from multiple areas of expertise and profession, with new owners reportedly contributing over 40% to the round.

Lignin Industries says its patented bio-based thermoplastic, Renol, is derived from lignin, an organic material found in all plants. The company has partnered with UK-based compounder and distributor [Hellyar Plastics](https://www.hellyar.co.uk/en%5FGB/?ref=packaging-europe.ghost.io) to work with customers across sectors including consumer electronics, home accessories, appliances and construction.

The company has also developed e-commerce bags sold to fashion brands, produced with lignin-based plastics mixed with recycled plastics. The bags are said to deliver the same functionality as conventional fossil plastic bags but with lower CO2 emissions.

In similar news, last year [Södra](https://www.sodra.com/en/gb/?ref=packaging-europe.ghost.io) revealed it would supply [Stora Enso](https://www.storaenso.com/en/?ref=packaging-europe.ghost.io) with [kraft lignin](https://packagingeurope.com/news/s%C3%B6dra-to-supply-stora-enso-with-kraft-lignin-from-swedish-production-facility/11950.article?ref=packaging-europe.ghost.io) from the ‘world’s largest’ production facility coming to Sweden in 2027 – anticipating a production capacity of up to 250,000 tpy of kraft lignin. The investment was supported by the [Swedish Energy Agency](https://www.energimyndigheten.se/en/?ref=packaging-europe.ghost.io) and is part of the [EU Recovery and Resilience Facility](https://commission.europa.eu/business-economy-euro/economic-recovery/recovery-and-resilience-facility%5Fen?ref=packaging-europe.ghost.io) (RRF) and [Next Generation EU](https://next-generation-eu.europa.eu/index%5Fen?ref=packaging-europe.ghost.io).

Also in 2024, [AGC Vinythai](https://agcvinythai.com/?ref=packaging-europe.ghost.io) and [Michigan State University](https://msu.edu/?ref=packaging-europe.ghost.io)’s Prof. Mojgan Nejad worked alongside [allnex](https://allnex.com/en?ref=packaging-europe.ghost.io) to [increase](https://packagingeurope.com/news/industry-and-academia-join-forces-to-integrate-lignin-into-epoxy-coatings/11662.article?ref=packaging-europe.ghost.io) the biobased content of epoxy resins and coatings by replacing the traditional bisphenol A (BPA) with lignin. Lignin, biobased epichlorohydrin, and biobased hardener were combined to achieve ‘comparable thermochemical performances to a BPA-based resin’.

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