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Umaro and Sway Receive $1.5M Dept. of Energy Grant to Turn Seaweed Waste into Sustainable Bioplastics

From Vegconomist.

Bay Area companies Umaro Foods and Sway have been awarded a $1.5 million grant by the US Department of Energy (DOE) to advance innovations in seaweed-based materials.

The funding, part of the DOE’s Mixed Algae Conversion Research Opportunity (MACRO) program, will support efforts to convert alginate, a byproduct of seaweed protein production, into sustainable bioplastics.

The partnership leverages the strengths of both startups. Umaro specializes in extracting protein from seaweed for use in plant-based foods, such as its red seaweed-derived bacon, for which it raised $3.8M earlier this year. This process produces alginate-rich sidestreams that will be repurposed by Sway, which develops compostable bioplastics using its TPSea™ resin technology.

The collaboration seeks to address two key sustainability challenges: reducing the reliance on fossil fuels, and mitigating the environmental impact of resource-intensive agriculture. Seaweed is increasingly recognized as a versatile feedstock for bioplastics and other materials due to its rapid growth, minimal resource demands, and positive environmental effects, such as improving water quality and fostering marine biodiversity.

Dual benefits of seaweed utilization

Beth Zotter, CEO of Umaro, noted the dual utility of seaweed in addressing these global challenges. She explained that the new project would create value from a single resource while enhancing the economics of both companies’ products. “With the right chemistry, seaweed has enormous potential to solve two problems at once: the need for sustainable materials and the need for sustainable proteins,” Zotter said.

Sway’s TPSea™ resin, a seaweed-based material compatible with existing manufacturing infrastructure, is currently being piloted in the fashion industry for home-compostable packaging. The company plans to expand its applications into flexible and rigid packaging formats, which represent a significant portion of fossil fuel-based plastic usage.

Julia Marsh, CEO and co-founder of Sway, noted the project’s potential to increase accessibility and lower costs by utilizing alginate from Umaro’s production process: “Through diligent research and development, Sway plans to increase the accessibility of our seaweed-based materials by utilizing Umaro’s surplus alginate to lower our overall price point.

“Thanks to the support of the DOE, we also plan to enhance our material’s performance to tackle especially challenging categories of necessary packaging for fashion, home goods, and food – helping to avoid plastic pollution in the process!”

Functional advantages of alginate

The alginate derived from brown seaweed offers several functional benefits when incorporated into bioplastics. Its gel-forming and stabilizing properties enhance mechanical strength and flexibility, making it suitable for various applications, including packaging, films, and coatings. These characteristics allow Sway’s materials to integrate with traditional plastic manufacturing techniques while providing a more sustainable alternative.

In addition to its environmental implications, the project aims to support economic opportunities for coastal communities, which are particularly vulnerable to climate change. By scaling seaweed-based technologies, the partnership between Umaro and Sway could contribute to job creation and economic stability in these regions.

Zotter continued, “Until now, no commercial process could generate both of these products from the same piece of seaweed. We’re eager to collaborate with Sway to apply our breakthrough technology to their industry-leading seaweed bioplastics, while improving the unit economics of both our products simultaneously.”