BIOWEG begins construction of bacterial cellulose production facility
Germany-based developer of biodegradable bacterial cellulose, BIOWEG, has announced the construction of its production plant in Q4 2026.
The first-of-a-kind facility will be Europe’s largest bacterial cellulose factory located in Elsdorf, North Rhine-Westphalia, producing 10,000 tonnes a year.
First commercial volumes are predicted in 2028, allowing Europe to access a product that it almost entirely imports.
BIOWEG’s cellulose substance is capable of replacing fossil-based polymers and is used as a replacement for intentionally added microplastics.
In 2023, Europe restricted the intentional adding of synthetic polymer micro-particles under The REACH (Amendment) Regulations 2023.
Over the ten years, fossil-based microplastics are to be removed from fertilizer, cosmetics and detergents, so formulators need a replacement that matches polymer performance.
Bacterial cellulose can match this performance with the right European industrial support, which the Elsdorf site will be able to achieve.
To accelerate development, BIOWEG has allocated around 60% of its total funding to the new site.
Since announcing its €16 million Series A in September 2025, BIOWEG has secured a further €14 million: €2 million in equity from new investor Rabo Ventures, extending the Series A to €18 million. The company’s total funding to date is €35 million.
Built in the region’s sugar industrial complexes, the fully-automated facility will valorise molasses and other side streams as fermentation feed stock metres from where they are produced. This will cut emissions and lower operating costs.
BIOWEG’s pilot site in Quakenbrück remains operational throughout construction: currently being upgraded and fully automated from around 100 to at least 200 tonnes a year, it will supply commercial sales batches through 2027 and 2028 until Elsdorf comes online and serves as the automation blueprint for the larger plant.
BIOWEG’s ingredients are already in commercial use, particularly in the agriculture, cosmetics and home care sectors. An in-house formulation team develops each ingredient against the customer’s specific use case and carries reformulation work in-house.
Elsdorf offers strong infrastructure and access to skilled workers from Cologne, Düsseldorf, Aachen and the Ruhrgebiet; around 30 high‑tech jobs will be created. BIOWEG has grown within the region’s innovation ecosystem, including Circular Valley, Gateway Factory and Chemstars.
Dr Prateek Mahalwar, Co-founder & CEO, BIOWEG said: “Financing a First-of-a-Kind plant is the hardest step in industrial biotechnology, and it is the step we are now taking, with the German government and the EU sharing the risk of building. Food and agricultural side streams will always be available locally in Europe, and Elsdorf is where we’ll turn them into high-performance, biodegradable ingredients at industrial scale. Our customers reformulate when the performance holds and the cost works, and this plant is built to deliver both at the volumes they need.”
For more startup news, check out the other articles on the website, and subscribe to the magazine for free. Listen to The Cereal Entrepreneur podcast for more interviews with entrepreneurs and big-hitters in the startup ecosystem.
