Finnish deeptech startup Elea & Lili has raised €2.5 million in seed funding to bring its fossil-free superabsorbent material to market, targeting hygiene and agriculture sectors long dominated by petroleum-based polymers. The round was led by Lifeline Ventures, with participation from Ikorni Invest Oy Ab and Baltiska Handels Sverige AB, signaling early backing from investors focused on industrial-scale sustainability. A spinout from VTT Technical Research Centre of Finland, the company is commercialising its cellulose-based alternative to superabsorbent polymers—materials widely used in diapers and soil water-retention products but associated with microplastic pollution. The fresh capital will be used to scale pilot production of its CSA™ material, secure industrial partnerships, complete regulatory validation, and support initial commercial launches across Europe and the U.S., as the company positions itself to replace a core material category rather than build a niche eco-product.
Disposable diapers and agricultural water-retention products still depend on fossil-based superabsorbent polymers (SAPs), a major source of persistent plastic waste and microplastic pollution. Building on more than a decade of biomaterials research at VTT Technical Research Centre of Finland, Elea & Lili is bringing to market a cellulose-based alternative designed to match existing performance while enabling industrial-scale replacement.
To move from pilot to full-scale production, the company is collaborating with established players across the cellulose and biomaterials value chain—partnerships it sees as critical to defining an entirely new global material category.
At its core, Elea & Lili operates as a biomaterials technology platform, with its flagship innovation, Cellulose Super Absorbent (CSA™), targeting what remains the last non-biodegradable component in modern diapers: fossil-based SAPs.
The World Economic Forum estimates that disposable diapers generate nearly 40 million tons of waste annually. Each child uses approximately 4,000-6,000 diapers, and around 170 billion diapers are produced globally every year.
CSA™ is made from cellulose, is biodegradable and microplastic-free, compatible with existing diaper production lines, and demonstrates absorption performance comparable to conventional SAP. The material has undergone safety and skin compatibility testing in accordance with relevant ISO standards.
Superabsorbent polymers are widely used in agriculture to retain water and improve nutrient efficiency. The fossil-based polymers in current products are mixed directly into the soil, resulting in permanent plastics ending up in farmland.
From 2028 onwards, EU regulation (Commission Regulation (EU) 2023/2055) will restrict the use of fossil-based plastic components that persist in soil. CSA™ provides a biodegradable solution for water retention, reduced irrigation demand, improved nutrient delivery, and regenerative agriculture solutions – without leaving persistent plastic residues in soil.
“Hygiene and agriculture are equally strategic entry points for us. In both markets, absorbent materials are mission-critical components – and today they are fossil-based. We are replacing them with a scalable biomaterial,” says Tatu Miettinen, CEO and Co-founder.
The idea for Elea & Lili began in 2017 when CEO Tatu Miettinen became aware of the environmental footprint of disposable diapers after the birth of his first child.
“In 2019, the birth of my daughter Elea was medically complex and involved time in neonatal intensive care. The experience profoundly reshaped our family’s perspective. At that moment, I decided: if she recovers, I will dedicate myself to building something meaningful and sustainable for the next generation,” says Miettinen.
Today, Elea & Lili holds a patent family built on over a decade of biomaterials research conducted at VTT and transferred to the company. The team combines biomaterials science, industrial scale-up expertise, and commercial execution capabilities.
The global diaper market is projected to reach $141.2 billion by 2030, while the superabsorbent polymers market is expected to grow to $13.2 billion over the same period.
Consumer and regulatory pressure are accelerating the transition towards sustainable materials. Elea & Lili positions itself at the intersection of deep-tech materials science, waste & climate impact, and industrial scalability.
“We are not creating a niche eco-product. We are replacing a global material category,” says Miettinen.
The €2.5 million seed round will be used to scale pilot production of CSA™, advance industrial validation, develop first commercial diaper products, accelerate agricultural field trials, and expand the core team.
“I have been waiting for a non-fossil alternative, and Finland’s top expertise in biomaterials makes it natural for it to emerge from here. Today, a good part of those 170 billion diapers remains in our soils forever, and we grow food in microplastics,” says Timo Ahopelto, Founding Partner of Lifeline Ventures.
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Read the orginal article: https://arcticstartup.com/elea-lili-has-raises-e2-5m-seed/
