Mi Terro, a startup focused on sustainable manufacturing, is revolutionizing the industry with its innovative use of upcycled materials. The company, originally known for upcycling casein proteins from expired milk to create eco-friendly t-shirts, has now turned its attention to other waste streams. By utilizing potato peelings and brewers’ spent grains, Mi Terro has developed cost-effective alternatives to polyvinyl alcohol (PVA), a petrochemical-derived film commonly used in laundry and dishwasher pods.
Founder and CEO of Mi Terro, Robert Luo, explains that while replacing polyester clothing with upcycled milk initially appealed to them, the economics of the process didn’t align. Luo states, We could never get close to polyester on price, so we started looking at replacing flexible films such as PVA with other forms of agricultural waste.
This search led them to team up with brewing giant AB InBev in China, where they launched a paid pilot project to create labels for beer bottles using brewers’ spent grains. They also joined the 100+ accelerator, which was co-sponsored by AB InBev, Coca-Cola, Colgate-Palmolive, and Unilever. Mi Terro further collaborated with Unilever to develop water-soluble flexible films for testing on detergent pods and laundry pods.
The process involves extracting proteins and fibers from the spent grains, which are then transformed into resins using existing manufacturing equipment through a patented method. However, Mi Terro now believes that using polysaccharides from potato peelings and cellulose from paper production byproducts could be a more cost-effective approach.
Mi Terro’s production process is not only more energy-efficient than conventional PVA production but also brings the cost of their film on par with PVA film when annual production reaches 600 tons. With a technology readiness level of around seven, Luo confirms that they have validated the research and development of their concept and have a proof of concept. The next step is to increase the supply of these materials to their partners for further experimentation.
The company has secured approximately $1.5 million in seed funding and currently has small teams in China and Los Angeles. Their goal is to raise around $5 million in a pre-series A round later this year to establish a pilot facility in China. This facility will serve as a pilot-scale demonstration site capable of producing 600 to 1,000 tons of PVA replacement annually. As they scale up, Mi Terro plans to potentially license or outsource production to their partners.
The move to find alternatives to PVA stems from concerns about its impact on the environment, as it is derived from petrochemicals. Despite claims that PVA polymers are fully biodegraded by microorganisms in water treatment facilities and the environment, consumer packaged goods companies are actively seeking more sustainable options. Mi Terro aims to be the first and most scalable solution for these brands.
While bio-based PVA solutions have been attempted using methods such as fermentation from sugarcane and seaweed, the costs associated with these approaches have hindered their scalability. Mi Terro’s ability to meet mechanical requirements and water dissolution time has set them apart. The company has recently signed a joint development agreement with Spanish personal care company SPB Global and has also received purchase orders from Unilever and Henkel to trial their materials.
In addition to their work on PVA replacements, Mi Terro is also exploring the development of water-resistant materials from agricultural waste. However, their priority remains on finding sustainable alternatives to PVA. With their innovative use of upcycled materials and cost-effective production process, Mi Terro is leading the way in sustainable manufacturing and offering a viable solution to the industry’s need for change.
