Brisbane-based Earthodic has raised $6 million in seed funding to further its development of recyclable bio-based coatings for paper packaging, with plans to expand its footprint into the US.
The start-up’s proprietary Biobarc coating offers a sustainable barrier to replace traditional petrochemical or plastic-based alternatives, with potential to reduce packaging waste.
According to the company, the coating can help eliminate microplastic pollution and divert materials from landfill -- packaging waste is responsible for 30 per cent of materials sent to landfill
Earthodic will use the new capital to grow its product and sales teams and secure manufacturing and distribution partnerships in Australia and the US. As part of its US expansion, the company will establish its headquarters at Western Michigan University’s Innovation Centre, situated near a pilot coating plant and testing facilities used by the paper industry.
Anthony Musumeci, Earthodic’s CEO, said the start-up offers a drop-in replacement that fits into existing manufacturing processes, helping packaging companies meet sustainability goals. “With our expansion to the USA and manufacturing partnerships, we’re excited to roll out our sustainable barrier coatings with packaging companies and household brands,” Musumeci said.
A core component of Earthodic’s formulation is lignin – an organic polymer and waste product of the pulp and paper industry. “It’s a massive problem for these companies,” Musumeci explained. “They burn it for energy or send it to landfill. Companies like AMCOR have millions of tonnes of it and are looking for applications. We use it as a key ingredient to coat paper.”
“The AMCORs and the international paper businesses of the world have literally millions of tonnes of this sitting around, and they’re looking for applications for it. So we take that as a raw ingredient and use it as one of the key ingredients in our formulation to coat paper.”
The company’s technology makes use of lignin, a renewable biopolymer that is a byproduct of the paper manufacturing process. Musumeci noted that lignin is often discarded or burned for energy, but Earthodic’s approach reintegrates it into its coatings to create recyclable packaging solutions.
The funding round was led by California-based FTW Ventures, with participation from Circulate Capital, Queensland Investment Corporation, UniQuest Fund, Significant Capital Ventures, and RedStick Ventures. Existing investors, including Tenacious Ventures, Investible, and Closed Loop Partners, also contributed to the round.
Earthodic has already conducted trials of its coating technology at Western Michigan University’s pilot plant, testing applications such as cold-chain packaging and produce punnets. The startup has also secured letters of intent from multinational packaging companies and expanded its supply chain in the US, with manufacturing partners ready to scale production.
FTW Ventures partner Jenn Burka highlighted Earthodic’s impact on sustainable packaging, saying, “We believe that making bio-based barrier coatings at scale is a crucial step in lessening our reliance on plastic-based packaging. Earthodic’s ability to utilise materials that would have otherwise been wasted exemplifies how the circular economy can deliver meaningful environmental and financial outcomes.”
The latest investment will also support Earthodic’s efforts to explore new markets, including coffee cups and other food packaging solutions, as it pursues FDA certification for additional product lines.
