Danish biotech Cellugy has raised €8.1mn in EU funding to accelerate production of a biodegradable material designed to replace microplastics in cosmetics.
The grant, awarded under the EU’s LIFE Programme for environmental projects, will support the commercialisation of EcoFLEXY, a cellulose-based material for use in personal care products such as creams, gels, and toothpaste.
Cellugy claims EcoFLEXY is the first material of its kind to match the performance of fossil-based carbomers, which are famed for their ability to give cosmetics a smooth, consistent texture and a long shelf life. Currently, carbomers dominate the global cosmetics market despite links to microplastic pollution and human health side effects.
“An alternative material that simply aims to be more sustainable is not enough,” said Dr Isabel Alvarez-Martos, CEO and co-founder of Cellugy. “The critical challenge is about delivering bio-based solutions that actually outperform petrochemicals… Good intentions won’t drive industry change.”
Cellugy estimates that its product could prevent 259 tonnes of microplastic pollution annually, scaling to over 1,200 tonnes by 2034, which it says is equivalent to removing millions of contaminated beauty products from the market each year.
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The funding will also support process optimisation and environmental validation, in partnership with Danish consultancy The Footprint Firm and Berlin-based AI company Sci2sc, which develops AI agents for biotech companies.
“Our role is to optimise every layer of production so that EcoFLEXY can compete not just on environmental benefits, but on cost and performance metrics that matter to manufacturers,” said Angelina Lesnikova, Sci2sci’s CEO.
With regulatory pressure against microplastics mounting in both the EU, Cellugy is positioning itself to meet the demand for more sustainable materials in the cosmetics sector.
“Within three to five years, we expect to be generating significant revenue while delivering a measurable environmental impact,” Alvarez-Martos said.