At a recent meeting with Kelpi, the pioneering company in sustainable packaging solutions, Cleantech for UK explored their journey from conception to breakthrough in the field of biomaterials. Kelpi’s mission centres on transforming seaweed into a viable alternative to fossil-fuel-based plastics, addressing the environmental impacts of traditional packaging. Their approach, according to Kelpi's CEO Neil Morris, came from the striking paradox of packaging—like a simple raw fish packet. The fish, spoiling in roughly eight days, while the plastic that encases it lingers for centuries. Neil and his co-founder Professor Chris Chuck, also a professor at the University of Bath and a foremost expert on seaweeds, envisioned harnessing seaweed’s natural properties to develop biodegradable materials perfectly aligned with product lifecycles.
Kelpi’s innovation lies in its unique material composition, using a 30-micron layer of seaweed-derived material on cardboard, designed to match the durability needs of everyday packaging. Unlike rigid or single-use plastics, Kelpi’s solution composts naturally without requiring the stringent conditions of many “compostable” alternatives. Initially, Kelpi faced challenges in making the material adaptable to packaging, but the company has since seen tremendous progress, as more industry players explore seaweed for biomaterials. Unlike other companies that rely on water-soluble materials, Kelpi’s innovation uses seaweed in a way that creates both water and oxygen barriers, ideal for food, beverage, and cosmetic packaging.
Seaweed’s broader ecological and economic impacts are also evident, with global seaweed farming expanding rapidly. Regions such as the Faroe Islands are pivoting from declining fishing industries to seaweed farming, supporting local economies while contributing to sustainable innovation, from packaging to nutraceuticals, human food and other applications such as reducing methane emissions when added to cattle feed. With commercial seaweed farms in over 50 countries worldwide, Kelpi sees potential in expanding seaweed’s impact beyond packaging and into larger sustainability frameworks.
However, Kelpi faces regulatory and funding challenges, especially in securing the necessary approvals for safe, consumer-friendly packaging. Currently, they’re seeking to clear regulatory hurdles with the Food Standards Agency (FSA) in the UK as well as regulatory bodies in the EU and USA. Kelpi would welcome further investment in bio-refinery infrastructure—essential for producing and scaling sustainable materials – from public and private sectors, perhaps co-ordinated with site regeneration of stranded oil refinery assets.
Having just secured a £4.35m investment round from investors including Blackfinch, Green Angel Ventures, Kadmos, QantX and the South West Investment Fund, Kelpi is looking to expand operations and accelerate their impact on sustainable materials. European Union grants also offer potential funding to scale up, with collaborative production partnerships as well as clients across the EU. Kelpi’s strategy, however, remains firmly rooted in the UK, where they hope to spearhead the bio-packaging revolution, aligning their technology with a vision for a world no longer dependent on fossil-fuel-derived plastics.
Looking forward, Kelpi’s vision for sustainable biomaterials aims to reshape not just packaging, but the broader cleantech landscape, reducing plastic waste and lowering our environmental footprint. The company remains committed to refining and expanding their solution in collaboration with policymakers, investors, and partners to create a more sustainable future for all. For Kelpi to thrive, policymakers should seek to address the following challenges:
1. Streamline Regulatory Approval for Innovative Materials - Expedite the regulatory approval process for cleantech innovations, particularly for new materials in food packaging, by increasing funding and resources for the Food Standards Agency (FSA). Shortening approval times would accelerate market entry for safer, sustainable materials and support domestic innovation in packaging technology.
Rationale: Current approval times are lengthy, with applications waiting over a year despite complete lab testing, slowing the rollout of new, sustainable solutions.
2. Establish Subsidy Parity for Bio-Based and Sustainable Materials - Level the playing field by reallocating subsidies and incentives traditionally reserved for fossil fuel-based production to include bio-refineries and sustainable material production. This would reduce costs for sustainable materials, encouraging innovation and adoption in the UK.
Rationale: Fossil fuel industries continue to benefit from cost-optimizing subsidies. Redirecting subsidies to support bio-refineries and green materials production would promote a more competitive and sustainable market.
3. Repurpose Decommissioned Industrial Sites for Cleantech Scale-Up Facilities - Invest in converting decommissioned industrial sites, such as Grangemouth, into facilities for cleantech development and scale-up. Focus on supporting biorefinery infrastructure and materials synthesis capabilities to retain and attract cleantech companies in the UK.
Rationale: Repurposing existing sites for clean technology development would offer the necessary infrastructure for scaling up production domestically, making it less necessary for companies to seek funding and setup opportunities in the EU.
