Bioweg secures US$18.8M to ramp up bacterial cellulose production in Germany

GERMANY – Bioweg, a German biotechnology firm specializing in biodegradable ingredients, has raised US$18.8 million in a Series A funding round. 

The investment supports the expansion of its precision fermentation process, which transforms food industry waste into bacterial cellulose as a substitute for acrylic polymer-based microplastics.

The round, led by Axeleo Capital’s Green Tech Industry Fund, includes participation from the EIC Fund, NBank Capital, BonVenture, and seed investor Dr.-Ing. Frank Jenner. 

This brings Bioweg’s total funding to US$25.8 million. Proceeds will fund the construction of an industrial-scale bacterial cellulose facility in Germany, alongside efforts to commercialize products for coatings, films, and functional packaging.

Prateek Mahalwar, Bioweg’s co-founder and CEO, stated that the capital accelerates market entry across Europe. 

In a recent interview, he noted, “Today’s funding allows us to move decisively into industrial manufacturing and support customers as they transition away from microplastics.” 

The company’s pilot facility in Quakenbrück currently produces up to six metric tons annually, with plans to co-locate the new plant near a major sugar producer for stable feedstock supply.

This setup cuts logistics emissions and integrates agri-food side streams, reducing raw material costs and price fluctuations. 

Mahalwar explained that such industrial symbiosis lowers capital and operating expenses while embedding sustainability in the production system.

Bioweg’s materials, including rheology modifiers and micropowders, degrade in under 60 days according to OECD tests. 

These drop-in alternatives match fossil-based polymers in performance for personal care, home care, and agricultural applications. 

The firm operates a materials lab on Bayer Crop Science’s campus in Monheim, aiding formulation development.

Regulatory pressures drive this growth. The European Commission targets a 30% cut in microplastic releases by 2030 under the Zero Pollution Action Plan. 

A 2023 REACH restriction already bans intentionally added microplastics in certain products, with full enforcement by 2027. Mahalwar highlighted that these rules speed up adoption of compliant solutions.

To maintain quality during scale-up, Bioweg is hiring dedicated quality control experts and aligning processes with ISO standards and food-grade practices. 

The company has modeled cost reductions through strain optimization and feedstock integration, aiming for 6,000-ton annual output.

In related developments, the EU’s Packaging and Packaging Waste Regulation, effective since February 2025, mandates higher recycled content and recyclability for packaging, creating demand for verified biodegradable options. 

Meanwhile, researchers at Kobe University announced on September 21 a new E. coli-derived plastic, PDCA, that exceeds PET’s strength while fully biodegrading, offering another pathway for sustainable materials in coatings and films.

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