Recently, Finnish forestry company Metsä Group has invested €1 million in Swedish startup FineCell, which is developing a biomaterial called CellOx. The funds will be used to improve FineCell's material application technology, engage with potential customers and identify materials needed for a demonstration production facility.
"The world is scrambling to replace fossil-based materials with sustainable ones. Our products, based on softwood pulp from the Nordic forests, offer many industries an alternative to the components currently in use," says Peter Axegård, CEO and co-owner of FineCell.
FineCell technology combines cellulose with oxalic acid, a naturally occurring chemical found in rhubarb, to produce a biobased material that requires 80-90% less energy to produce than other similar cellulosic products.FineCell technology converts pulp into value-added biomaterials, which can be used as either a powder or an aqueous solution, known as a hydrogel.
These can replace fossil-based chemicals in beauty and health products and paints.CellOx is transparent and can easily carry other ingredients, making it an excellent binder for products such as sunscreens, skin creams and paints.
Metsä Spring, an innovation company of the Metsä Group, led the round, with participation from the founders of EIT InnoEnergy and FineCell.Niklas von Weymarn, CEO of Metsä Spring, said that the company is interested in all technologies that convert softwood pulp into value-added products, and the FineCell's technology is particularly compelling. FineCell aims to have its demo plant ready for investment decisions by the end of 2024, with larger scale pilot production planned for 2025 and full commercial production starting in 2027.
