Avantium, Carbios, Cellana: Three Underdogs take great leaps forward

Some say that companies like Avantium, Cellana and Carbios can be safely ignored, the hill is too tough to climb, the technology too ambitious, the markets served too uncaring, the development and deployment costs too high, the returns too minuscule to care.

Others say:

When in this world the headlines read
Of those whose hearts are filled with greed
Who rob and steal from those who need
To right this wrong with blinding speed
Goes Underdog! Underdog! Underdog! Underdog!

We can learn a lot from the episodes of Underdog. That humble, lovable Shoeshine Boy is worth betting on, that Simon Bar Sinister and other villains are worth betting against, that Sweet Polly Purebred need not despair, the world’s future is not as bleak as our fears encourage us to think.

What is the better way? Bet against Avantium, Cellana and Carbios relying on the belief that 85 percent of new companies fail, or to support Underdogs relying on the belief that when the going gets tough, the tough go bio.

This week, Underdog fans got a booster.

First up, Avantium celebrated this week the opening of its FDCA Flagship Plant in Delfzijl, the Netherlands. Avantium will produce 5000 tonnes per year of FDCA, the essential building block for 100% plant-based and circular plastic polyethylene furanoate, known as PEF or under the new brand Releaf. 

Her Majesty Queen Máxima of the Netherlands officiated the opening ceremony by turning a valve, unveiling the FDCA Flagship Plant as a large curtain dropped. Inside the plant, the Flagship Plant employees were present to witness the momentous occasion. After Queen Máxima’s tour, the guests were also given the opportunity to explore the facility. In the historic Heveskes church, the guests could visit an exhibition about the feedstock and various applications of Releaf.

The Avantium backstory

Avantium, as your essential backstory, focuses on renewable & circular polymer materials. Avantium develops and commercializes innovative technologies for the production of materials based on sustainable carbon feedstocks. The most advanced technology is the YXY Technology that catalytically converts plant-based sugars into FDCA (furandicarboxylic acid), the key building block for the sustainable plastic PEF (polyethylene furanoate). Avantium had successfully demonstrated the YXY Technology at its pilot plant in Geleen, the Netherlands.

Avantium CEO Tom van Aken said: “Today marks the dawn of a new era for Avantium and the future of sustainable plastics. Our new FDCA plant embodies our commitment to innovation and sustainability. We are excited to lead the way in producing Releaf, a material that offers a viable alternative to traditional petroleum-based plastics. This plant is not just a testament to our technological advancements but also to our dedication to creating long-term, sustainable value for all our stakeholders. We will now commence the start-up of the FDCA Flagship Plant, introduce Releaf products to the market, and expedite the rollout of our FDCA/PEF licensing strategy.”

The Carbios advance

Next up, CARBIOS. The company and its partners On, Patagonia, PUMA, Salomon, and Calvin Klein unveiled the world’s first enzymatically recycled polyester garment made from 100% textile waste using CARBIOS’ pioneering biorecycling technology.  

This technological feat contributes to advancing textile circularity when, today, the majority of recycled polyester is made from PET bottles, and only 1% of fibers are recycled into new fibers.  The collective achievement marks an important milestone for the consortium’s ultimate aim of demonstrating fiber-to-fiber closed loop using CARBIOS’ biorecycling process at an industrial scale, and marks an important step forward for the textile industry’s shift towards a circular economy.

The technology

Using CARBIOS’ biorecycling technology, polyester is broken down using enzymes into its fundamental building blocks which are reformed to produce biorecycled polyester whose quality is on par with oil-based virgin polyester.  Petroleum can now be replaced by textile waste as a raw material to produce polyester textiles, that will in turn become raw materials again, thus fueling a circular economy, with the added benefit of a lower carbon footprint and avoidance of landfill or incineration.

The process

The t-shirt’s production began with consortium members supplying rolls and production cutting scraps to CARBIOS in Clermont-Ferrand, France.  This textile waste consisted of some mixed blends with cotton or elastane, as well as various treatments (such as durable water repellent) and dyes which render them complex to recycle using conventional methods. The collected waste was deconstructed into its original monomers, PTA and MEG, using CARBIOS’ biorecycling technology at its pilot facility. The resulting monomers were then repolymerized, spun into yarn and woven into new fabric by external partners, demonstrating the seamless integration into existing manufacturing processes.

Begüm Kürkçü, Director of Sustainability, On, said, “We know that fiber-to-fiber recycling is a crucial step to drive our industry towards circularity, which is why we have dedicated energy and investment to researching this area. Achieving the proof-of-concept and creating the first T-shirt made out of 100% biorecycled fibers is an important milestone. Our engagement with CARBIOS and the other consortium members is an important step towards enabling the industry to game-changing circular technologies at scale.”

Anne-Laure Descours, Chief Sourcing Officer, PUMA added, “PUMA’s wish is to have 100% of our polyester coming from textile waste. Today’s announcement is an important milestone towards achieving this and making our industry more circular. We now need to work together to make sure we can scale up this technology to make the largest possible impact. We’re excited to be part of this breakthrough and setting new standards for fiber-to-fiber recycling.”

Cellana and PhytoSmart

But wait, there’s more. Now, news arrives that Cellana and PhytoSmart have signed a definitive agreement to merge the two companies. PhytoSmart will become a wholly owned subsidiary of Cellana. Deena Sisitsky, CEO of PhytoSmart, will join the Cellana Board of Directors and will lead the Consumer Products activities for the combined company under the PhytoSmart™ brand name. The combined company has a fundraising round ahead to finance the deal, in the range of $10 million we hear. 

PhytoSmart’s first commercial product is a whole algae pet supplement currently being sold via Amazon.com and through the PhytoSmart corporate website, in addition to select pet stores throughout the United States. It’s SPAGS production technology is centered around the use of small, modular, low-capex, and highly scalable vertical bags and has been optimized for the commercial production of Omega-3-producing algae strains.

The Cellana, Phytosmart backstory

PhytoSmart’s cost-effective, sustainable production methods have made it a leader in delivering high-quality algae-derived nutrients, especially for applications requiring precision and purity. PhytoSmart’s first commercial product, a DHA-Omega-3-containing whole algae pet supplement product, exemplifies this commitment to high-quality, high-value products and processes. PhytoSmart and Cellana will jointly focus in the near term on expanding the number of different product offerings within the PhytoSmart line of pet supplements and accelerating the marketing and sales of these initial pet supplement products. Once established in the pet market, PhytoSmart plans to produce supplements and functional food product offerings for humans.

Cellana, based in San Diego and with historic roots in Hawaii, has demonstrated the robust ability of its patented ALDUO photosynthetic production technology to grow highly diverse, non-GMO algae at commercially significant biomass yields. Since 2006, Cellana has successfully produced over 30,000 kilograms of algae biomass using its hybrid production technology of large-scale photobioreactors coupled with large open ponds.

Deena Sisitsky, CEO of PhytoSmart said, “We are thrilled to join forces with Cellana, whose complementary production technology and multi-product business model will allow us to broaden our portfolio and reach new markets. The combination of PhytoSmart’s specialized focus on DHA-producing algae for high-value applications using small, inexpensive, modular, scalable production technology with Cellana’s demonstrated strength in EPA-producing algae using large-scale production technology.

Martin Sabarsky, CEO of Cellana, stated, “The total addressable market for pet supplements alone is over $2 billion globally and growing rapidly, and the market for Omega-3 supplements for humans is more than $8 billion. Our combined company’s ability to deliver vegan, sustainable, whole algae, non-GMO, non-fish-based Omega-3 supplements represents a potential game-changer in the pet and human supplement sectors alone.”

The Bottom Line

Three companies, underdogs all. Most wrote off Avantium after BASF walked. Most wrote off Cellana when Shell walked. I’m not sure CARBIOS was ever written on by too many. So we’ve had a great week, for all, more great accomplishments required ahead, progress if not Paradise, the journey is not the station, and so forth. You get the idea. But short-sellers of the advanced bioeconomy beware.