Ningbo Homelink Eco-iTech and Danimer Scientific Announce Commercial Launch of Home Compostable Extrusion Coating Biopolymer Based on PHA

Rhea-AI Summary

Danimer Scientific (NYSE: DNMR) and Ningbo Homelink Eco-iTech have commercially launched home compostable extrusion coating biopolymers for paper cups, using Danimer's signature polyhydroxyalkanoate (PHA), Nodax®. These PHA-lined cups offer a sustainable alternative to traditional paper cups, being both home and industrially compostable, as well as fully repulpable.

The cups have been certified by TÜV as home compostable, by BPI as commercially compostable, and have passed the first phase of Western Michigan University's repulpability/recyclability test. They are now proceeding with full certification for recyclability in paper systems.

Homelink, a leading manufacturer of disposable tableware, will produce these cups in their new extrusion facility in Thailand. This partnership aims to provide consumers with an environmentally friendly option that can be disposed of in home compost bins or backyard compost piles, as well as through established commercial composting programs.

Positive

• Commercial launch of home compostable extrusion coating biopolymers for paper cups
• Cups certified as home compostable by TÜV and commercially compostable by BPI
• Passed first phase of repulpability/recyclability test by Western Michigan University
• Potential for full recyclability certification in paper systems
• Expansion of production capabilities with Homelink's new extrusion facility in Thailand

Negative

• None.

Insights

Environmental Technology Expert

This commercial launch of home compostable extrusion coating biopolymer for paper cups represents a significant advancement in sustainable packaging. The partnership between Danimer Scientific and Homelink leverages Danimer's Nodax® PHA technology to create a viable alternative to traditional plastic-lined paper cups. Key points:

• The PHA-based coating is certified for home and industrial composting, offering enhanced end-of-life options
• Cups are fully repulpable, potentially improving recyclability in paper streams
• The technology addresses the growing demand for eco-friendly disposables in the food service industry

While this launch is promising, market adoption and scalability will be important factors to watch. The impact on Danimer's revenue stream could be substantial if the product gains traction with major quick-service restaurants and retailers. However, the overall effect on Danimer's financial performance may take time to materialize as production ramps up and market penetration increases.

Market Research Analyst

This partnership and product launch could significantly impact Danimer Scientific's market position:

• Expands Danimer's presence in the $20+ billion global paper cup market
• Aligns with increasing consumer and regulatory pressure for sustainable packaging solutions
• Potential for rapid adoption due to Homelink's established global distribution network

However, investors should consider:

• Current market cap of $46.4 million suggests the company is still in growth phase
• Success depends on cost-competitiveness and performance compared to traditional materials
• Potential for increased competition as other biopolymer solutions enter the market

While the news is positive, it's important to monitor upcoming financial reports to gauge the actual revenue impact and growth trajectory resulting from this launch.

Home compostable extrusion coating biopolymer used as liquid barrier for paper hot and cold drink cups.

BAINBRIDGE, Ga.--(BUSINESS WIRE)-- Danimer Scientific, Inc. (NYSE: DNMR) (“Danimer”), a leading, next-generation biotechnology company focused on the production of biodegradable materials, and Ningbo Homelink Eco-iTech Co. Ltd. (“Homelink”), a leading manufacturer of disposable tableware, have announced commercial launch of home compostable extrusion coating biopolymers made with Danimer’s signature polyhydroxyalkanoate (PHA), Nodax^®. Homelink’s cups, coated with Nodax^® PHA-based biopolymer, will offer their customers a home and industrially compostable, and fully repulpable alternative to traditional paper cups. The PHA biopolymer grade is designed to replace polyethylene and be used as a liquid barrier coating for paper cups.

The Homelink PHA lined cups have been fully certified by TÜV as home compostable, by BPI as commercially compostable, and have passed the first phase of the Western Michigan University repulpability/recyclability test as a repulpable cup. The cups are now proceeding with full certification for recyclability in paper systems.

While industrial compostable cups are established in the marketplace, these new PHA-based coated cups offer consumers an opportunity to dispose of them at home in compost bins or backyard compost piles, along with established commercial composting programs. Danimer’s PHA-based extrusion coating biopolymer has been certified as both home and industrial compostable by TÜV AUSTRIA, and commercially compostable by the Biodegradable Products Institute (BPI). To achieve home or industrial compostable certifications, products must pass strict tests for biodegradation, disintegration, ecotoxicity and regulated metals content within specific timeframes stipulated by consensus specifications such as ASTM D6868 and D8410.

Homelink’s products can be found in major grocery retailers, megastores, and quick service restaurants around the globe. Nodax^®, Danimer’s signature polyhydroxyalkanoate (PHA), is a 100% renewable and fully biodegradable biopolymer that can be used to formulate grades that replace a variety of traditional plastic products, particularly those that cannot be or are difficult to recycle. Homelink recently broke ground on a new extrusion facility in Thailand which will be utilized for producing the new cups.

“Danimer and Homelink share a common mission, we are committed to using alternative biomaterials to replace traditional plastics,” said Danimer Scientific’s CEO, Stephen Croskrey. “We are excited to partner with a world leader in disposable tableware to bring these home compostable cups to the market. “

About Danimer Scientific

Danimer is a pioneer in creating more sustainable, more natural ways to make plastic products. For more than two decades, its renewable and sustainable biopolymers have helped create plastic products that are biodegradable and compostable and return to nature instead of polluting our lands and waters. Danimer’s technology can be found in a vast array of plastic products that people use every day. Applications for its biopolymers include additives, aqueous coatings, fibers, films and injection-molded articles, among others. Danimer holds more than 480 granted patents and pending patent applications in more than 20 countries for a range of manufacturing processes and biopolymer formulations. For more information, visit https://danimerscientific.com.

About Ningbo Homelink Eco-iTech Co., Ltd.

Ningbo Homelink Eco-iTech Co., Ltd. is a leading professional manufacturer in China for plastic cutlery, drinking straws, plastic cups & plates, food containers and other daily-use products. As one of the largest manufacturers of plastic tableware in the world, Homelink is dedicated to the research of biodegradable materials and is committed to working towards a greener planet by continuing our pursuit of decreasing the dependence on fossil fuel resins. Our product line now encompasses the manufacture of PLA/PBAT compostable bags, cPLA cutlery, plates and bowls, PHA and PLA based straws and a complete line of bagasse tableware.

Established in 2004, Ningbo Homelink has witnessed continuous growth due to its international standard of management and integrity in handling business. Homelink’s US office located in Southern California, was established in 2009 to service the North American market. You may reach Ningbo Homelink at info@nbhome-link.com or the US office at sales@nbhomelink.com for the inquiries specifically catered to the North American market.

Forward‐Looking Statements

Please note that in this press release we may use words such as “appears,” “anticipates,” “believes,” “plans,” “expects,” “intends,” “future,” and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to, the overall level of consumer demand on our products; general economic conditions and other factors affecting consumer confidence, preferences, and behavior; disruption and volatility in the global currency, capital, and credit markets; the financial strength of the Company's customers; the Company's ability to implement its business strategy, including, but not limited to, its ability to expand its production facilities and plants to meet customer demand for its products and the timing thereof; risks relating to the uncertainty of the projected financial information with respect to the Company; the ability of the Company to execute and integrate acquisitions; changes in governmental regulation, legislation or public opinion relating to our products; the Company’s exposure to product liability or product warranty claims and other loss contingencies; disruptions and other impacts to the Company’s business, as a result of the COVID-19 global pandemic and government actions and restrictive measures implemented in response; stability of the Company’s manufacturing facilities and suppliers, as well as consumer demand for our products, in light of disease epidemics and health-related concerns such as the COVID-19 global pandemic; the impact on our business, operations and financial results from the ongoing conflict in Ukraine; the impact that global climate change trends may have on the Company and its suppliers and customers; the Company's ability to protect patents, trademarks and other intellectual property rights; any breaches of, or interruptions in, our information systems; the ability of our information technology systems or information security systems to operate effectively, including as a result of security breaches, viruses, hackers, malware, natural disasters, vendor business interruptions or other causes; our ability to properly maintain, protect, repair or upgrade our information technology systems or information security systems, or problems with our transitioning to upgraded or replacement systems; the impact of adverse publicity about the Company and/or its brands, including without limitation, through social media or in connection with brand damaging events and/or public perception; fluctuations in the price, availability and quality of raw materials and contracted products as well as foreign currency fluctuations; our ability to utilize potential net operating loss carry forwards; and changes in tax laws and liabilities, tariffs, legal, regulatory, political and economic risks. More information on potential factors that could affect the Company's financial results is included from time to time in the Company's public reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release and speak only as of the date hereof. We assume no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240926211294/en/

Investors and Media

Blake Chamblee

Phone: 770-337-6570

ir@danimer.com

Source: Danimer Scientific, Inc.

FAQ

What is the new product launched by Danimer Scientific and Homelink?

Danimer Scientific and Homelink have launched home compostable extrusion coating biopolymers for paper cups, made with Danimer's signature polyhydroxyalkanoate (PHA), Nodax®.

What certifications have the PHA-lined cups received?

The cups have been certified by TÜV as home compostable, by BPI as commercially compostable, and have passed the first phase of Western Michigan University's repulpability/recyclability test.

How does this new product differ from traditional paper cups?

Unlike traditional paper cups, these PHA-lined cups are home and industrially compostable, fully repulpable, and offer a sustainable alternative that can be disposed of in home compost bins or backyard compost piles.

Where will Homelink produce the new PHA-lined cups?

Homelink will produce the new PHA-lined cups in their recently constructed extrusion facility in Thailand.