Sweden’s Lignin Industries just raised €3.9 million to accelerate the rollout of Renol®—a plant-based plastic designed to replace fossil-based materials. For industries like fashion and electronics, this means packaging and parts that meet both performance needs and climate goals.
Renol® works like traditional plastic but comes with a much smaller carbon footprint. Now, with fresh capital, the company is pushing to scale production and reach more partners across Europe and beyond.
The funding round was led by the Carrick family, who founded the company and remain its majority owners. Over 40% of the investors were new, bringing fresh perspectives from both technical and industrial backgrounds. Their support signals growing interest in practical, sustainable materials that can be used today—not years from now.
From Forest Residue to Future-Ready Plastics
Lignin Industries transforms lignin—a tough natural polymer found in trees—into a versatile plastic alternative. Most of the 80 million tonnes of lignin processed each year is burned. But Lignin Industries turns it into Renol®, a bio-based thermoplastic made through a clean, continuous extrusion process in Knivsta, near Stockholm.
This process produces no toxic emissions. The result is a hydrophobic material that resists heat and works well in everyday plastic products. It integrates smoothly into standard manufacturing systems, making it a plug-and-play solution for companies using polyethylene (PE), polypropylene (PP), or ABS.
Depending on the product, Renol® can replace 15% to 30% of fossil plastic. According to Lignin Industries, every kilogram of Renol® used instead of petroleum-based plastic prevents 3 to 6 kg of CO₂ from being released.
Backed by Deep Roots in Forestry and Science
The startup began in 2018, blending academic research with a five-generation legacy in the forestry industry. Dr. Christopher Carrick, the founder and board chair, developed the core Renol® process after years of study. His goal? To show that nature already holds the answers to the plastic problem.
“Our method takes an organic material and turns it into a high-performing, bio-based plastic. We want to prove there’s another way forward,” Carrick said.
CEO Fredrik Malmfors added that customer demand is growing quickly. The company is seeing new clients come on board while also fulfilling repeat orders. “Renol® is proving itself commercially,” he explained. “The next step is to scale operations and expand our offerings.”
Partnerships Powering Growth
Lignin Industries has built strong industry ties to speed up adoption. One example is its partnership with Hellyar Plastics, a UK-based compounder and distributor. Together, they’re introducing Renol® to new markets.
Earlier, Lignin worked with Coperion to develop a custom twin-screw extrusion system that enabled its current production model. That collaboration helped fine-tune Renol® for real-world manufacturing.
The company is also working with major players like Scania and Swedish innovation agency Vinnova. These partnerships are helping to improve Renol®’s performance and find new applications in sectors like automotive and industrial design.
As more industries aim to reduce their carbon footprint, Lignin Industries offers a solution that fits within their existing systems. With scalable production, real-world performance, and deep-rooted expertise in both forestry and chemistry, Renol® stands out as a practical step toward a sustainable plastics future.
