Innovator Helping Nike, H&M ‘Replace Fossil-Based Plastics’ Nets $125 Million
Newlight Technologies, Inc., a Huntington Beach, California-based materials maker that counts Target, H&M and Nike as customers, announced it has secured $125 million in a new equity investment round led by decarbonization-focused investment platform GenZero.
Newlight uses decarbonization technology that converts greenhouse gas into AirCarbon-based materials through the use of natural microorganisms. The microorganisms eat greenhouse gas and grow a molecule inside their cells similar to muscle called polyhydroxybutyrate (PHB). PHB is found in most life on Earth, and is used by living organisms as a biological energy and carbon storage vehicle. When purified, PHB becomes meltable and moldable, making it available for use in a variety of materials.
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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 firm’s carbon-negative plastic-and-leather alternative into its lineup. Its materials are delivered to more than 5,000 locations worldwide. 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.
“Newlight’s 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. We are excited to support Newlight in their next phase of growth as they expand their commercial production to meet the increasing demand for zero-carbon materials and deliver decarbonization impact at scale.”
The push to create more sustainable alternative fibers and materials has picked up steam in recent years. Earlier this year, Goldwin announced five brands—The North Face, Nanmica, Woolrich, The North Face Purple Label and Goldwin itself—would launch products made with Brewed Protein fiber, a microbial fermented fiber developed in partnership with Spiber.
Newlight also has completed development agreements with CNG to commercialize specialty films decarbonized with AirCarbon and with OLCV to use direct air capture systems to develop carbon dioxide feedstock for AirCarbon production plants.
This capital investment will allow Newlight to expand production of AirCarbon at its California facility, as well as complete construction on a new facility in Ohio.
“Our vision is a world where greenhouse gas is used the way nature uses it—as a resource—and by turning it into high-performance consumer products, we can provide companies with a measurable and scalable path to help them decarbonize their products and move closer to a net-zero world,” Herrema said.
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