Innovator Helping Nike, H&M ‘Replace Fossil-Based Plastics’ Nets $125 Million
Summary
The microorganisms eat greenhouse gas and grow a molecule inside their cells similar to muscle called polyhydroxybutyrate (PHB). When purified, PHB becomes meltable and moldable, making it available for use in a variety of materials.Currently, Newlight produces AirCarbon-based materials for customers in the fashion, entertainment, hotel, automotive and food service industries, with Nike in 2021 exploring the possibility of adding the California firms carbon-negative plastic-and-leather alternative into its lineup. With this new investment, the company plans to expand its AirCarbon manufacturing platform to further its mission to use greenhouse gas as a resource to manufacture decarbonized materials at a global scale.This capital round represents an inflection point for Newlight, where we have the opportunity to build on 20 years of research, development, and commercialization, and expand biological decarbonization at large scale, said Mark Herrema, CEO of Newlight. It is an important milestone for Newlight, and we are tremendously excited about the path ahead.Along with GenZero, this funding round also includes participation by Oxy Low Carbon Ventures (OLCV), a subsidiary of Occidental (Oxy) focused on advancing low-carbon technologies; Charter Next Generation (CNG), a producer of specialty films; and an unnamed global luxury goods manufacturer.Newlights work is transformational in leveraging the power of both technology and nature to produce biomaterials, said Frederick Teo, CEO of GenZero. By using captured greenhouse gases such as methane to produce a high-quality material (AirCarbon) and replace fossil-based plastics, we can achieve significant reductions in carbon emissions.