Uluu Secures AU$16 Million to Innovate Seaweed-Based Plastic Alternatives

Uluu Raises AU$16 Million to Tackle Plastic Pollution

In a significant step toward creating sustainable alternatives to fossil fuel-based plastics, Australian startup Uluu has raised AU$16 million in Series A funding. This round of investment, led by German growth investor Burda Principal Investments, marks a pivotal moment for the company as it prepares to build a demonstration plant that will help scale its innovative technology that transforms seaweed into natural, environmentally friendly materials.

The funding round also saw participation from notable investors such as Main Sequence, Novel Investments, Startmate, and several other impact investment firms, illustrating a growing global interest in environmentally responsible business models. Uluu's technology aims to replace conventional plastics with materials that are not only biodegradable but also perform comparably in terms of strength and usability.

Uluu's seaweed-based materials have several advantages over traditional plastics: they are reusable, recyclable, compostable at home, and marine biodegradable. This means they decompose without the harmful release of microplastics that has become a troubling byproduct of plastic waste. Additionally, Uluu's innovative production process boasts the potential to reduce carbon emissions significantly—estimates suggest that for every kilogram of their material produced, around 5 kg of CO₂ can be sequestered and avoided compared to the emissions generated by traditional plastic production, which is about 3 kg per kilogram.

By harnessing the power of nature, Uluu’s materials are poised to leave a positive impact on the environment rather than a detrimental one. Seaweed grows rapidly, extracting sunlight and nutrients directly from the ocean, making it an incredibly sustainable resource.

Uluu's plans for scaling operations include moving from its current pilot plant, which processes 100 kg per year, to a demonstration facility with a capacity of 10 tonnes annually located in Western Australia. This leap in production capability will enable Uluu to meet the demands of various sectors, including cosmetics, fashion, and automotive industries, with whom they are already collaborating. Notable partnerships are underway with brands like Quiksilver, Papinelle, and Audi, reflecting Uluu's ambition to integrate its sustainable materials into widely used consumer products.

Michael Kingsbury, Uluu's co-founder and co-CEO, expressed enthusiasm about this latest development. “After four years of work on this technology and two years of pilot operations, we’re thrilled to take the next step towards delivering meaningful quantities of our materials to market,” he stated, emphasizing the importance of the demonstration plant as a crucial milestone in Uluu’s journey towards large-scale production capable of competing with traditional fossil-fuel-based plastics.

Dr. Julia Reisser, co-founder and co-CEO, reinforced the environmental benefits of the product, stating that seaweed not only sequesters CO₂ but also helps clean ocean pollutants. “By harnessing this natural resource, we are committed to creating materials that promote a healthier planet,” she added.

Uluu has also attracted high-profile supporters, including Karlie Kloss, the model and entrepreneur who champions STEM education. Kloss remarked, “Uluu is addressing one of the most pressing environmental challenges of our time by offering a natural and scalable solution. Their mission is something I resonate with deeply.”

As they prepare for future growth, Uluu is designing plans for a commercial-scale facility that will have the capacity to produce thousands of tonnes of materials every year, catering to vast global markets. This ambitious goal aligns with BPI’s investment strategy of backing companies that drive transformative innovation. Christian Teichmann, CEO of Burda Principal Investments, expressed excitement about the partnership, stating that Uluu is setting a new standard for sustainable material production.

Founded in 2021 and headquartered in Perth, Uluu’s innovative approach combines seaweed and fermentation, akin to brewing beer, to produce natural polymers called PHAs. As the company continues to grow, having expanded its staff from 13 to 23 this year, Uluu received the 2025 SXSW Innovation Award, highlighting its potential to redefine material manufacturing in the contemporary marketplace.

In conclusion, Uluu’s innovative approach appears to be a promising solution not only in combating plastic waste but also in leading the way towards a more sustainable future, confirming that ecological responsibility doesn't have to come at the cost of performance.