German deeptech company BIOWEG will begin construction of Europe’s largest bacterial cellulose production facility in the fourth quarter of 2026. The facility, located in Elsdorf, North Rhine-Westphalia, will produce up to 10,000 tons of bacterial cellulose annually, with commercial production expected to begin in 2028. The facility will help expand European production of bacterial cellulose, a biodegradable material that can replace fossil-based polymers and intentionally added microplastics. Currently, Europe relies heavily on imports for this material.
Facility to Support Microplastic-Free Alternatives
The project comes as Europe tightens restrictions on intentionally added synthetic polymer microparticles under REACH regulations. These restrictions are gradually removing fossil-based microplastics from applications such as fertiliser and seed coatings, cosmetics, and detergents. As a result, manufacturers need alternatives that can deliver comparable performance while being available at industrial scale. BIOWEG aims to address this demand through its bacterial cellulose-based materials. Construction at Elsdorf will begin before the end of 2026, while industrial-scale production is scheduled to start in 2028. To accelerate the project, BIOWEG has allocated around 60% of its total funding to the new facility.
BIOWEG Secures €35 Million in Funding
Since announcing its €16 million Series A funding in September 2025, BIOWEG has secured an additional €14 million. The latest funding includes €2 million in equity from Rabo Ventures, extending the Series A to €18 million. In addition, BIOWEG has received €10.3 million in non-dilutive EU funding through the “Produktives.NRW” grant competition under the EFRE/JTF Programme for North Rhine-Westphalia 2021–2027. With a further €2 million from other sources, BIOWEG’s total funding has now reached €35 million.
Elsdorf Plant to Use Local Industrial Feedstocks
The location of the new facility will play an important role in its production economics. BIOWEG will build the plant within one of Germany’s largest sugar industrial complexes. Consequently, the facility will use molasses and other industrial side streams as fermentation feedstock close to where they are generated. This approach can reduce logistics-related emissions, lower operating costs, and strengthen feedstock security. The facility will use a high level of automation. BIOWEG plans to apply automation and robotics expertise from the sugar industry to create an efficient biomanufacturing operation.
Quakenbrück Pilot Plant to Support Commercial Production
While construction continues at Elsdorf, BIOWEG’s pilot facility in Quakenbrück will remain operational. The company is upgrading and automating the site, increasing its production capacity from around 100 tonnes to at least 200 tonnes per year. The facility will supply commercial batches through 2027 and 2028 until the Elsdorf plant becomes operational. The Quakenbrück facility will also serve as the automation blueprint for the larger industrial-scale plant.
Bacterial Cellulose Targets Agriculture and Consumer Products
BIOWEG’s bacterial cellulose-based ingredients are already being used commercially across several applications. In agriculture, the company develops microplastic-free fertiliser coatings, seed coatings, and extrusion aids. In some formulations, these products can deliver the required performance at up to 70% lower dosage than conventional synthetic alternatives, potentially reducing cost-in-use. Meanwhile, in cosmetics, personal care, and home care, BIOWEG’s ingredients provide properties such as texture enhancement, rheology control, suspension, film formation, and sensory effects. The company also operates an in-house formulation team that develops ingredients according to specific customer applications and supports reformulation requirements.
BIOWEG Targets Industrial-Scale Sustainable Production
Dr Prateek Mahalwar, Co-founder and CEO, BIOWEG, said financing a first-of-a-kind industrial biotechnology plant is a major challenge and highlighted the role of German and EU support in sharing the investment risk. He added that locally available food and agricultural side streams can provide a reliable feedstock base for producing high-performance, biodegradable ingredients at industrial scale.
Dr ir Katrien Swerts, Executive Director, Rabo Ventures, said BIOWEG has reached a stage where proven technology and commercial demand can support industrial-scale production. She highlighted the company’s biodegradable alternatives to fossil-based polymers and the importance of the Elsdorf facility in meeting growing customer demand. As per the press release, with the Elsdorf project, BIOWEG is positioning bacterial cellulose as a scalable, biodegradable alternative for industries seeking to reduce their reliance on fossil-based polymers and intentionally added microplastics.
