BIOWEG secures USD 40.6M to build Europe’s largest bacterial cellulose site
Construction is scheduled to begin in the fourth quarter of 2026.
GERMANY – German deep-tech company BIOWEG is preparing to build what it describes as Europe’s largest bacterial cellulose production facility in Elsdorf, North Rhine-Westphalia.
The plant is expected to deliver its first commercial volumes in 2028.
Once operational, the facility will have the capacity to produce up to 10,000 tonnes of bacterial cellulose annually, strengthening Europe’s domestic supply of a material that is currently sourced almost entirely from outside the region.
The project represents BIOWEG’s move from pilot-scale manufacturing to industrial production.
The company develops biodegradable, high-performance bacterial cellulose ingredients intended to replace fossil-derived polymers and intentionally added microplastics in a range of applications, including cosmetics, personal care, agriculture and other industrial formulations.
The project is financed through a blended package that includes €18 million (USD 20.88 million) in equity, extended from an initial €16 million (USD 18.47 million) Series A led by Axeleo Capital in September 2025 by a further €2 million (USD 2.32 million) from new investor Rabo Ventures, plus €10.3 million (USD 11.95 million) in non-dilutive EU funding awarded under the “Produktives.
NRW” grant competition within the EFRE/JTF Program for North Rhine-Westphalia 2021–2027, and around €2 million (USD 2.32 million) from other sources, taking total funding to €35 million (USD 40.6 million), with roughly 60% allocated to the new site.
Dr ir Katrien Swerts, Executive Director, Rabo Ventures, said, “BIOWEG has reached the point where proven technology and commercial demand can translate into industrial-scale impact.”
“The investment also reflects W&R’s Clean Energy strategy of selectively supporting technologies and infrastructure that accelerate the transition to a more sustainable and circular economy while delivering long-term value for clients and society.”
According to BIOWEG, the facility will be built inside one of Germany’s largest sugar industrial complexes, valorizing molasses and other side streams as fermentation feedstock meters from where they are produced, a model that cuts logistics emissions, lowers operating costs and secures supply.
The plant will be fully automated, drawing on the sugar industry’s decades of experience running profitable, thin-margin operations with robotics and automation.
BIOWEG’s pilot site in Quakenbrück will remain operational throughout construction and is being upgraded and fully automated from around 100 to at least 200 tonnes per year, supplying commercial sales batches through 2027 and 2028 until Elsdorf comes online and serving as the automation blueprint for the larger plant.
The company’s ingredients are already in commercial use, with agricultural applications including microplastics-free fertilizer coatings, seed coatings and extrusion aids that deliver required functionality at up to 70% lower dosage than conventional synthetic alternatives in some formulations, lowering cost-in-use under industrial conditions.
Meanwhile, in cosmetics, personal care and home care, its bacterial cellulose-based ingredients provide texture enhancement, rheology control, suspending properties, film-forming and sensory effects from a fully bio-based, biodegradable input, all supported by an in-house formulation team that develops each ingredient against the customer’s specific use case and carries out reformulation work internally.
The plant anchors BIOWEG in the Rheinische Revier, a region undergoing long-term transformation from coal-based industry towards novel technologies, with Elsdorf offering established infrastructure and access to skilled workers from the Cologne, Düsseldorf, Aachen and Ruhrgebiet talent pools; around 30 high-tech jobs will be created at the site.
BIOWEG’s expansion aligns with European policy direction, including the Commission’s bioeconomy strategy and the industrial biotechnology package expected in autumn 2026, both of which target domestic biomanufacturing capacity, shorter supply chains and industrial value built on renewable feedstocks.
Founded in 2019 by Dr Prateek Mahalwar and Srinivas Karuturi, BIOWEG uses precision fermentation and green chemistry to create high-performance, bio-based and biodegradable ingredients that replace intentionally added microplastics and fossil-derived polymers.
Rabo Ventures, part of Rabobank, partners with early-stage companies across the value chain to support their growth ambitions and enable vital transitions, investing behind management teams building solutions for real problems with a focus on innovation and sustainability.
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