Sway and Umaro secure $1.5 million DOE grant to advance seaweed bioplastic solutions

San Francisco Bay Area-based startups Umaro and Sway have been awarded a $1.5 million grant by the U.S. Department of Energy (DOE). The grant is part of the Department’s Mixed Algae Conversion Research Opportunity (MACRO) program and aims to foster new processing techniques that convert alginate sidestreams from seaweed protein production into innovative bioplastics.

Seaweed, recognized for its rapid growth and minimal resource demands—requiring no fresh water, fertilizer, or arable land—is gaining traction as an eco-friendly alternative to fossil fuels and traditional agricultural outputs. It also plays a regenerative role in marine ecosystems, enhancing water quality and promoting biodiversity.

Umaro, known for developing plant-based bacon from red seaweed protein available in California’s Whole Foods stores, has recently devised a process for extracting protein from kelp, leaving behind polysaccharides. These polysaccharides, rich in alginate, are then utilized by Sway to produce home-compostable, seaweed-based bioplastics. This collaboration, enhanced by the recent funding, seeks to optimize the use of seaweed’s natural polymers to create biodegradable products.

Beth Zotter, CEO of Umaro, highlighted seaweed’s dual potential in addressing the pressing needs for sustainable materials and proteins. “Until now, no commercial process could generate both of these products from the same piece of seaweed. We’re eager to collaborate with Sway to apply our breakthrough technology to their industry-leading seaweed bioplastics while improving the unit economics of both our products simultaneously.”

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Sway’s latest innovation, TPSea, a seaweed and plant-based pellet akin to thermoplastic starch, is making headway in the market with its introduction in Sway Polybags. These bags are currently undergoing pilot testing with fashion brands such as prAna, Faherty, Florence, and Alex Crane and will soon be available through sustainable packaging supplier EcoEnclose.

Julia Marsh, CEO and co-founder of Sway, expressed optimism about the DOE-supported project’s potential to scale and enhance the material properties necessary for challenging packaging applications. “Thanks to the support of the DOE, we also plan to enhance our material’s performance to tackle especially challenging categories of necessary packaging for fashion, home goods, and food – helping to avoid plastic pollution in the process!”

This funding initiative is part of a broader $20.2 million distribution by the U.S. Department of Energy to support ten university and industry projects dedicated to developing mixed algae solutions for low-carbon biofuels and bioproducts.