Green investments: VTT spin-out raises EUR2.5 mn to commercialise SAP material; GreenDot acquires French recycler RG

Elea & Lili, a deep-tech startup originating from VTT Technical Research Centre of Finland, has raised EUR2.5 million in seed funding to industrialise its patented Cellulose Super Absorbent (CSA) – a microplastic-free, biodegradable alternative to conventional superabsorbent polymers (SAPs). VTT has transferred the underlying technology and IP to the newly established company.

The company’s first commercial applications target two massive global markets: disposable diapers and agriculture – both currently dependent on fossil-based absorbent materials that generate long-lasting plastic waste and microplastic pollution.

The funding was led by Lifeline Ventures and will accelerate pilot production, industrial partnerships, regulatory validation, and first commercial launches in the US and Europe.

The round also included Ikorni Invest Oy Ab and Baltiska Handels Sverige AB, representing long-term industrial and sustainability-focused capital.

Elea & Lili is working with leading cellulose and biomaterials companies to scale CSA from pilot to industrial production. These partnerships support the company´s ambition to build a new global material category.

Elea & Lili says its CSA material replaces the last non-biodegradable component in modern diapers: fossil-based superabsorbent polymers.

The World Economic Forum estimates that disposable diapers generate nearly 40 million tonnes/year of waste. Each child uses approximately 4,000-6,000 diapers, and around 170 billion diapers are produced globally every year.

CSA is made from cellulose, is biodegradable and microplastic-free, compatible with existing diaper production lines, and demonstrates absorption performance comparable to conventional SAP. The material has undergone safety and skin compatibility testing in accordance with relevant ISO standards.

Superabsorbent polymers are widely used in agriculture to retain water and improve nutrient efficiency. The fossil-based polymers in current products are mixed directly into the soil, resulting in permanent plastics ending up in farmland.

From 2028 onwards, EU regulation (Commission Regulation (EU) 2023/2055) will restrict the use of fossil-based plastic components that persist in soil. CSA provides a biodegradable solution for water retention, reduced irrigation demand, improved nutrient delivery, and regenerative agriculture solutions – without leaving persistent plastic residues in soil.

Started up in 2019, today, Elea & Lili holds a patent family built on over a decade of biomaterials research conducted at VTT and transferred to the company.

The global diaper market is projected to reach US$141.2 billion by 2030, while the superabsorbent polymers market is expected to grow to US$13.2 billion over the same period and this is what Elea & Lili is positioning itself for to meet market demands.

It adds that the EUR2.5 million seed round will be used to scale pilot production of CSA, advance industrial validation, develop the first commercial diaper products, accelerate agricultural field trials, and expand the core team.

In other news, technology firm Agilyx ASA says that its subsidiary GreenDot has acquired French recycling company RG Group and its two additional mechanical recycling sites for LDPE (Tence and Saint-Pal-de-Mons), expanding the group's European footprint and capabilities to deliver quality recyclate to packaging manufacturers and brands. RG has been active since 2019, had a turnover of circa EUR20 Million in 2025, and has 50 employees. Terms of the deal were not disclosed.

The acquisition marks GreenDot's first operational presence in France and significantly enhances its expertise in Commercial and Industrial (C&I) polyethylene film recycling. France’s eco‑modulation framework has created strong incentives for recyclers and converters to incorporate more “Made in Europe” materials. RG Group currently processes more than 20 kilotonnes/year of LDPE film, with the potential of increasing capacity beyond 35 kilotonnes/year.

Laurent Auguste, CEO of GreenDot, said: "Integrating RG Group is an important step in strengthening our European footprint and accelerating true circularity for plastics. France is a key market, and with these new capabilities, we can deliver even more high‑quality recyclates to brands committed to sustainable packaging."

RG Group is said to strengthen GreenDot Group’s position as a rising European LDPE recycler across both household and post‑commercial streams. It adds that with this strategic move, GreenDot will continue to expand its European presence and reinforce its role as a provider of recycled plastics for the packaging industry.

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