Tiny plastic particles are added on purpose to cosmetics, detergents and farm products as microbeads, thickeners and coatings, adding to what BIOWEG calls microplastic pollution in waterways and food chains. BIOWEG, founded in 2019 in Quakenbrück in Lower Saxony, grows bacterial cellulose by fermenting food industry waste and turns it into biodegradable replacements for these synthetic polymers.
The European Innovation Council granted €2,421,314 towards a €3.57 million project that improved the fermentation and tested products with industrial partners. In September 2026 BIOWEG announced €30 million in financing to build a 10,000-tonne-a-year plant in Elsdorf, North Rhine-Westphalia, with construction from late 2026 and first commercial volumes in 2028.
Company file
- Legal entity
- BIOWEG GmbH, Quakenbrück, Germany
- Founded
- 2019, by Prateek Mahalwar (CEO) and Srinivas Karuturi (COO)
- Technology
- Bacterial cellulose fermented from food industry side-streams
- Products
- Biodegradable microbeads, rheology modifiers, seed coating materials
- Partners
- Bayer (seed coatings), Ginkgo Bioworks (strain engineering)
- Investors
- Axeleo Capital (lead), Rabo Ventures
- EIC project
- BIOWEG, 1 Jul 2022 to 30 Jun 2025
- EIC funding
- Blended finance
Where BIOWEG Stands Today
The September 2026 financing combines BIOWEG's Series A, led by Axeleo Capital and extended to €18 million with €2 million from Rabo Ventures, a €10.3 million EU grant won in North Rhine-Westphalia's "Produktives.NRW" competition under the EFRE/JTF programme, and €2 million from other sources. BIOWEG says this brings its total funding to €35 million and that the Elsdorf plant will create about 30 jobs. It describes existing commercial users in agriculture and in cosmetics, personal and home care, without naming them.
The Technology: Cellulose Grown by Bacteria
Some bacteria produce cellulose as they ferment. BIOWEG feeds them food industry waste and processes the cellulose into microbeads and thickening agents that can stand in for acrylates, polyethylene and polystyrene. In 2023 it partnered with Ginkgo Bioworks to improve its production strains, and its materials team moved into Bayer's Monheim site to develop biodegradable seed coatings and encapsulation for crop protection products.
"Financing a First-of-a-Kind plant is the hardest step in industrial biotechnology."
Prateek Mahalwar, CEO, BIOWEG, September 2026What the EIC Project Promised, and What CORDIS Shows
The project promised "a zero waste process for producing all natural, biodegradable replacement additives for synthetic polymers and microspheres". The CORDIS report describes higher fermentation yields, several food industry waste streams identified as feedstock, optimised microbead and rheology modifier formulations to replace PMMA and other synthetic polymers, and tests with industrial partners. It gives no production volumes, customer numbers or certifications, and says commercialisation needs "additional financial support" and supportive regulation.
- A better fermentation processDeliveredHigher yields; waste feedstocks.
- Polymer replacement productsDeliveredMicrobeads and rheology modifiers.
- Industrial validationDeliveredTested with partners; Bayer.
- Commercial-scale productionPendingPlant output from 2028.
What Has Happened Since the Award
The Money
The award was blended finance, and the EIC Fund did invest: its Series A of €16 million, announced in September 2025, was led by Axeleo Capital's Green Tech Industry Fund with the EIC Fund, NBank Capital, BonVenture and seed investor Frank Jenner, bringing total funding to €22 million, and was extended in 2026. The German company register was not accessible for this article, so revenue and accounts are not included.
What cannot be checked
BIOWEG's revenue, who its commercial customers are, how much it sells today and the size of the EIC Fund's stake are not public.
Why Europe Should Care
The EU has restricted intentionally added microplastics, which creates demand for biodegradable alternatives. BIOWEG calls Elsdorf Europe's largest bacterial cellulose plant, and it is being built with EU regional and Just Transition money. The EIC grant supported the process development that led there.
What the project promised
A zero-waste process for natural, biodegradable replacements for synthetic polymers and microspheres.
What the record shows
An improved process, products tested with industry, €30M in plant financing and a factory due in 2028.
The Verdict
From grant to factory
The EIC project did its part, and BIOWEG has now raised the money to build a first commercial plant, the step its CEO calls the hardest in industrial biotech. Its sales and customers remain private, and the plant will not produce before 2028.
BIOWEG has not been asked for comment for this article. It is based entirely on company statements and EU project data, linked throughout.
