BIOWEG and the EIC Accelerator: Bacterial Cellulose for Microplastics

29 September 2026898 words5 min

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.

€2.42MEIC grant, 68% of a €3.57M project
€35MTotal funding raised, per BIOWEG
10,000 tAnnual capacity of the planned Elsdorf plant
2028First commercial volumes

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 plant money

How the €30M behind the Elsdorf plant is made up

Financing BIOWEG announced in September 2026: its Series A, now €18M including €2M from Rabo Ventures, a €10.3M EU grant under the EFRE/JTF programme for North Rhine-Westphalia, and €2M from other sources. BIOWEG puts its total funding at €35M.

BIOWEG, 10 September 2026. Values in € millions.

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 2026

What the EIC Project Promised, and What CORDIS Shows

The EIC project

The EU paid 68% of a €3.57M project

The BIOWEG project ran from July 2022 to June 2025. The award was blended finance.

CORDIS project 190108094. Values in € millions.

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.

  1. A better fermentation processDeliveredHigher yields; waste feedstocks.
  2. Polymer replacement productsDeliveredMicrobeads and rheology modifiers.
  3. Industrial validationDeliveredTested with partners; Bayer.
  4. Commercial-scale productionPendingPlant output from 2028.

What Has Happened Since the Award

The record

From lab fermentation to a 10,000-tonne plant

BIOWEG worked with Ginkgo and Bayer during the EIC project and in 2026 announced financing for its first commercial plant.

  1. 2019FoundedBy Prateek Mahalwar and Srinivas Karuturi, Quakenbrück
  2. Oct 2021EIC Accelerator cut-offZero-waste process for biodegradable polymer replacements
  3. Jul 2022EIC project startsFermentation yield, food waste feedstocks, formulations€2.42M grant
  4. Feb 2023Ginkgo BioworksStrain engineering partnership
  5. Nov 2023BayerSeed coating and encapsulation materials at Monheim
  6. Jun 2025EIC project endsMicrobeads and rheology modifiers tested with industry
  7. Sep 2025Series ALed by Axeleo Capital€16M
  8. Sep 2026Elsdorf plant€30M financing; construction from Q4 2026, output 2028

BIOWEG and CORDIS.

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 process development in the years before the plant financing.

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 announced plant financing and a factory planned for 2028.

The Verdict

From grant to factory

The EIC project did its part, and BIOWEG says it 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.

Industry

Materials and chemicalsBio-based materials

Focus
  • Cellulose materials
Technologies
  • Microbial fermentation
  • Synthetic biology
Keywords
  • Bacterial cellulose
  • Microplastics
  • Cosmetics
  • Home care
  • Seed coatings
  • Food side-streams