FineCell, a Stockholm-headquartered innovator in biobased materials, has announced the successful conclusion of its latest funding round, securing a substantial €1 million. The funding was spearheaded by Metsä Group‘s innovation arm, Metsä Spring, along with EIT InnoEnergy. FineCell specializes in transforming cellulose from Nordic forests into eco-friendly biobased materials such as dry cellulose powder and hydrogels, offering sustainable alternatives for industries like beauty, healthcare, and paints. The newly acquired funds will play a pivotal role in propelling FineCell’s research initiatives for innovative applications, fostering relationships with potential clientele, and finalizing the blueprint for an anticipated demo production facility, scheduled for a launch in 2025.
The FineCell technology utilizes cellulose and oxalic acid, a natural chemical found in rhubarb, to produce a biobased material that is not only eco-friendly but also energy-efficient, requiring up to 80–90% less energy for manufacturing compared to similar cellulose products. This versatile material holds promise as a replacement for fossil-based chemicals in numerous products, from beauty and healthcare items to paints.
“Our goal is to revolutionize industries by replacing fossil-based materials with our biobased alternatives. This funding propels us into the next phase, and we can’t wait to make a significant impact on the products shaping our daily lives,” shares Peter Axegård, CEO of FineCell.
Metsä Group, in its second Swedish investment in FineCell (FineCellOx AB), has allocated the €1 million seed funding to enhance material application expertise, engage with potential customers, and finalize crucial elements for a potential investment decision regarding a demo production facility.
“The world is scrambling to replace fossil-based materials with sustainable ones. Our product, based on softwood pulp from Nordic forests, gives many industries an alternative to the components they are currently using,” says Peter Axegård, CEO and co-owner of FineCell. “Metsä Spring has seen the potential in our innovation, and due to their know-how in planning, constructing and operating production plants, including pilots and demos, and their access to the raw material linked to their ambition to upgrade Nordic wood, they were the perfect choice to support us as we move forward.”
“We’ve been following FineCell for some time and are delighted to now be part of their journey. For us, all technologies that convert softwood pulp into added-value products are of interest. This technology and product clearly stand out, making it especially interesting. The FineCell technology is still young. At this stage, we do not yet know all the directions that this technology platform might take us,” says Niklas von Weymarn, CEO of Metsä Spring.
FineCell is steadfast in its roadmap, aiming to finalize the design of its demo plant by the end of 2024. The company anticipates commencing larger-scale test production in 2025, with full commercial production slated for 2027.
The race to replace fossil-based ingredients in everyday products is gaining momentum globally, and FineCell stands at the forefront, poised to deliver sustainable alternatives without compromising performance—a crucial step towards a more environmentally conscious future.
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Read the orginal article: https://arcticstartup.com/finecell-raises-e1m/
