Key enabling manufacturing technology for low-cost and sustainable production of fibre-based rigid packaging at scale

Project Information

YANGI

Grant agreement ID: 968384

DOI

10.3030/968384

Project closed

EC signature date 8 March 2021

Start date 1 April 2021

End date 31 December 2023

Funded under

• INDUSTRIAL LEADERSHIP - Innovation In SMEs

Total cost

€ 2 848 627,50

EU contribution

€ 1 994 039,25

Coordinated by

THE LOOP FACTORY AB
Sweden

Periodic Reporting for period 2 - YANGI (Key enabling manufacturing technology for low-cost and sustainable production of fibre-based rigid packaging at scale)

Reporting period: 2022-04-01 to 2023-12-31

Summary of the context and overall objectives of the project

If the industries keep producing plastic at the current rate, the CO2 emissions will double by 2050 to 85 million tons. The fact that only 30% of the world's plastic is being recycled is evidence of that the system doesn't work, and as a result of this the nature is flooded by plastic waste. 60% of this waste comes from the plastic packaging industry. To tackle this plastic is facing of increased cost in material, extended producer responsibility and taxation. The existing biobased solution have drawbacks in relation to extensive environmental impact, material & water usage in production and production cost. Further, by that not offering any real alternative to plastic.

Yangi offers a sustainable solution to replace plastics, efficient use of resources. Raw materials are today based on fully renewable cellulose pulp sourced from sustainable forests. The technology results in significantly reduced energy consumption – more than 75 % compared to plastics and existing alternatives for formed fibers (wet moulding). In the technology no process water is needed, meaning that the technology will be highly relevant for areas with water scarcity and a more feasible drop in solution for plastic converters that want to move into fiber based packaging. Compared to plastics, using cellulose fibers as raw material is future-proof; Fibers already have 65 % lower emissions than plastics; Fibers have higher potential in reduced life cycle emissions according to industry road maps; Fiber raw materials are estimated to have lower cost increase for zero-CO2 production compared to other raw materials; High material recirculation rates already today >70 % compared to < 15 % for plastics.

Plastic pollution has a significant economic impact on the EU blue economy and people’s health. The EU Commission estimates that implementing circular economy would provide savings of €600 billion for EU businesses (8% of their annual turnover). Yangi contributes directly on reducing the detrimental economic and environmental impact of plastic pollution while improving people’s wellbeing. The simple substitution of plastic with Yangi’s eco-friendly, fibre-based material would prevent the harmful littering of the oceans. A circular production models like Yangi’s would also limit the economic loss associated to packaging plastics (95% of lost value due to short use-cycles). Yangi is addressing several important aspects for society; moving away from fossil based raw materials, resource efficient production (energy and water) as well as targeting carbon neutral production.

The EIC accelerator project will setup a demonstration plant to run customer pilots in 4 packaging applications and show their results to additional stakeholders. We will establish a scalable manufacturing and distribution partnership with a global machine supplier and secure IP for market release and scale up. With 77 machines in operation by 2030, our technology is expected to save more than 190 000 tons of plastic waste, 11 Bn litres of fresh water and 260 000 tons of CO2. The overall objective is to reshape the world of packaging and become the leading packaging solutions provider within cellulose dry forming for the manufacturer of packaging.

Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far

The objective of the Yangi EIC accelerator project was to establish a demonstration plant for cellulose dry forming packaging technology, conducting customer pilots in four packaging applications and presenting the results to additional stakeholders. Additionally, the goal was to form a scalable manufacturing and distribution partnership with a global machine supplier, while securing intellectual property rights for market release and scale-up.
The project has played a crucial role as a prerequisite for advancing the technology developed by The Loop Factory AB and facilitating the commercialization of both the technology and the market.
As part of this effort, the dry forming technology was spun out into a new entity, Yangi AB, during the project with The Loop Factory AB as main beneficiary and Yangi AB as Affiliated Entity. This step was taken to prepare for successful commercialization and to secure investments for future growth.
Under the project, we have matured the technology from TRL5/6 to TRL 7/8, making it ready for commercialization. We have demonstrated traction in the market and ensured scalability by establishing partnerships with subcontractors in the supply chain, including a global machine producer who will manufacture the technology and act as a subcontractor. Additionally, we have secured our intellectual property with pending patents and registered trademarks and confirmed freedom to operate concerning competing solutions in the market.
The technology has been demonstrated and piloted, utilising our state-of-the art demo facility, to over 60 stakeholders in the packaging value chain. Project results and the solution has been presented, communicated, and disseminated in several global and international forums, such as trade fairs, investor events and conferences targeting the packaging industry. We have also engaged actively in social media, with further developed communication channels, brand and website. The result, Yangi is now established as a prominent solution provider for cellulose dry-formed packaging, with a strong foundation for future growth.
As a result, we have now launched the Cellera dry forming industrial platform, ready for commercialization in 2024 and strengthened the unique value proposition of Yangi's machine platform and offerings. We have also successfully developed the business plan and onboarded investors.
The team has expanded from 8 employees to 30 full-time equivalents, where we have recruited senior positions such as Chief Commercial Officer (CCO), Chief Financial Officer (CFO), and Chief Operating Officer (COO) and attracted key specialists competences within the area, whereof 4 PhD:s.
Through our positioning as a key enabler with unique competence in the field we have also established strong R&D collaborations to further develop the ecosystem and joined multiple R&D consortiums and projects within the area.
With 77 machines in operation by 2030, our technology is expected to save more than 190 000 tons of plastic waste, 11 Bn litres of fresh water and 260 000 tons of CO2.

Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far)

We have developed a unique machine and technology platform, with the potential to scale dry forming and replace plastic packaging at scale. Performed LCA and impact assessment analysis confirms the outperforming sustainability profile compared to existing alternatives (thermoformed plastics and wet moulded packaging solutions). Expected results until the end of the project is to have prepared customers for launch of trial volumes in the demo, and qualified portfolios within Yangi target segments. Demonstration of the technology will increase the awareness among industry as well as consumers, where Yangi has been visible in some trade fairs and with focus through Yangi and The Loop Factory social media (websites and LinkedIn). Where we have received a broad coverage of followers on a global basis.

In the long run, by enabling the replacement of harmful plastic packaging with renewable, fibre-based material, and significantly reducing the water and energy used in the process for producing it, Yangi is strongly nurturing the EU ambition for a circular economy and the goal of climate neutrality by 2050.