Cellugy secures EUR 8.1M to support EcoFLEXY scale-up

In Denmark, Cellugy ApS, an industrial biotechnology startup developing innovative, natural, biofabricated cellulose-based solutions to replace fossil-based materials in various industrial applications has announced that it has secured EUR 8.1 million to support scaling up the production of its biofabricated cellulose-based rheology modifier material, EcoFLEXY. The new funding comes in the form of a grant from the LIFE Programme, the European Union’s funding instrument for projects supporting environment and climate action.

Jun 25, 2025 - 20:30
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Cellugy secures EUR 8.1M to support EcoFLEXY scale-up

EcoFLEXY is designed to replace fossil-based carbomers, which are known as harmful microplastics, thereby significantly reducing environmental pollution and the use of hazardous chemicals in the cosmetics sector.

The platform’s debut product, EcoFLEXY Rheo, is the world’s first high-performance rheology modifier that is fully biobased, biodegradable, and competitively priced, offering the personal care industry an alternative to microplastics and fossil-based ingredients, without compromising texture or skin feel.

It delivers superior product performance and adaptable sensorial properties, along with scalable, operationally efficient manufacturing to meet the needs of a fast-evolving beauty industry focused on sustainability and innovation.

Microplastics are a growing concern

Cellugy’s EcoFLEXY Rheo is the world’s first high-performance rheology modifier (RM) that is fully biobased, biodegradable, and competitively priced (photo courtesy Cellugy).

The release of microplastics from personal care products is a growing concern, as studies indicate that products such as facial scrubs and liquid soaps contribute to environmental pollution.

Recent research also suggests that microplastics can enter the human body through inhalation, ingestion, or skin contact, raising questions about their potential impacts on human health.

Rheology modifiers, for example, are essential to virtually every personal care product, from skincare and colour cosmetics to deodorants and oral care.

However, nearly 70 percent of the EUR 2.8 billion global rheology modifier (RM) market remains dependent on fossil-based carbomers and acrylates, which are classified under the EU’s REACH regulation due to their persistent and toxic nature.

Launch of BIOCARE4LIFE

Through the BIOCARE4LIFE project, EcoFLEXY is positioned to prevent the release of 259 tonnes of microplastics annually by project completion, scaling dramatically to 1,289 tonnes per year by 2034, equivalent to removing millions of contaminated beauty products from the market each year.

The timing of the project is crucial, as reports suggest the beauty industry could stand to lose around EUR 12 billion (US$13 billion) due to the EU microplastics ban and US restrictions on Per- and PolyFluoroAlkyl Substances (PFAS), also known as “forever chemicals.”

But the challenge is more than just a sustainability-related issue.

An alternative material that simply aims to be more sustainable is not enough; the critical challenge is about delivering bio-based solutions that actually outperform petrochemicals in performance parameters like texture, functionality, and user experience, while also being scalable and operationally efficient. Good intentions won’t drive industry change; we need higher-quality alternatives like EcoFLEXY that make it easier, not harder, for brands to choose sustainability. Only when bio-based materials match or exceed the performance and economics of traditional ingredients will we see the transformation needed to protect both human health and our planet, explained Dr Isabel Alvarez-Martos, CEO and co-founder at Cellugy.

EcoFLEXY offers superior performance and previously unachievable functionalities compared to existing biobased ingredients, such as xanthan and cellulose gums, while eliminating the handling challenges associated with plant-nanocellulose alternatives.

The BIOCARE4LIFE project will drive Cellugy’s EcoFLEXY scale-up process (photo courtesy Cellugy).

The biofabricated cellulose material delivers enhanced stability, compatibility, and sensoriality, critical factors for cosmetics manufacturers who cannot compromise on product quality while meeting growing sustainability demands.

This bridges the gap between the performance of fossil-based modifiers and the environmental benefits of natural materials, enabling the creation of effective and eco-friendly personal care formulations.

Drive scale-up

The BIOCARE4LIFE project will drive EcoFLEXY’s scale-up process through the work of a specialist consortium of experts in biotechnology, sustainability, and data management.

This includes The Footprint Firm (TFF), a consultancy company focused on circular economy solutions and environmental impact validation.

The project signals real progress toward more sustainable manufacturing in the personal care sector. Our role is to validate the environmental impact and ensure the best alignment with circular economy principles. The project’s combination of technical innovation and sustainability validation positions EcoFLEXY very strongly for market adoption and supports the EU’s broader transition to a more resource-efficient economy, said Will Nunn, Manager at The Footprint Firm.

Sci2sci, a Berlin-based startup specialising in data management, machine learning, and AI-driven process optimisation, is also part of the consortium.

Scaling a biotech solution is never simple, but it’s where the real value lies. Our role is to optimize every layer of production, from fermentation parameters to supply chain predictability, so that EcoFLEXY can compete with petrochemical alternatives not just on environmental benefits, but on cost and performance metrics that matter to manufacturers. Together, we have the potential to make sustainable chemistry economically irresistible as well as environmentally essential, said Angelina Lesnikova, CEO of Sci2sci.

The EUR 8.1 million investment will fund critical scaling activities, process optimization, and commercial validation over four years.

This grant provides the resources we need to transform our vision into reality. Within three to five years, we expect to be generating significant revenue while delivering a measurable environmental impact. Our end goal is sweeping petrochemicals from an industry worth billions, and we now have the backing and the partnerships to make it happen, concluded Dr Isabel Alvarez-Martos.

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