Advanced Biobased Materials Company PlantSwitch Gets Support for Commercialization

Bioplastics startup PlantSwitch has raised its financial investment by $8 million with participation of large institutional investment firm NexPoint Capital to proceed with its first commercial manufacturing facility in North Carolina and expand its team. The plant began producing material in December 2023. Expected to reach capacity in 2025, the 52,000 ft² facility will have a capacity of 10 million lb/yr. The company developed what it calls a ‘revolutionary’ bioplastic technology that converts cellulosic agricultural waste streams into a low-cost, compostable plastic resin alternative, with the aim of replacing conventional single-use plastics.

The company sees itself uniquely positioned to provide a compostable, cost-effective alternative to conventional plastic that is both sustainable and scalable. The company currently has 12 employees, primarily chemical engineers and polymer scientists that have made significant contributions to the field of sustainable materials. PlantSwitch compounds have been shown in labs to degrade like PHA, breaking down completely in countertop compost machines within eight hours and within three months in commercial compost conditions. The company says its compounds perform like PHA, which breaks down in more settings and ranks higher in performance than forerunner PLA, but they say they can make their compounds at lower cost. Field testing in commercial composting facilities is underway. Meanwhile, the manufacturing process incorporates agricultural byproducts such as rice husks, wheat straw and other cellulose-rich products, which are blended with other biopolymers to lower the cost.

Says PlantSwitch CEO Dillon Baxter, “Major corporations have made commitments to lower their plastic consumption and the toxic waste it produces, but the proper infrastructure to deliver a viable alternative hasn’t existed. This $8 million raise, in partnership with NexPoint, is being invested in building out this infrastructure, which will drive the alternative plastics market forward. We believe the infrastructure for compostable bioplastics is critical to the future of our economy, our health and our planet. That’s why we are on a mission to build it in a way that is scalable and cost competitive.” PlantSwitch is now gearing up for its 2024 Series A fundraise, which will be used to expand capacity with additional manufacturing facilities.