For decades, building material companies have relied on old newspapers as the primary source of cellulose insulation. However, with the decline of newspaper circulation, the industry has faced a significant challenge in securing sufficient raw materials. This problem has led to an exploration of alternative paper-based products that can replace newsprint.

The Rise of Corrugated Cardboard

As e-commerce continues to grow, the demand for cardboard boxes has skyrocketed. In fact, every year, up to 50 million tons of corrugated cardboard end up in waste and recycling bins. At first glance, it seems like a perfect solution to the insulation industry’s shortage. However, there’s a catch: transforming cardboard into insulation is far more complicated than using newsprint.

The Challenge of Contaminants

Corrugated boxes contain a multitude of contaminants such as plastic tape, shipping labels, and even metal staples. These impurities pose a significant obstacle to the production of clean insulation. In contrast, newsprint was a relatively simple raw material to work with. This is where CleanFiber, a startup that has been working on this problem for years, comes in.

CleanFiber’s Innovative Solution

Founded by CEO Jonathan Strimling, CleanFiber has successfully developed an entirely new process to transform cardboard into insulation. The company has managed to produce enough insulation to cover around 20,000 single-family homes. However, expanding the business beyond its initial factory in Buffalo, New York will require more capital.

Securing Funding for Expansion

To tackle this challenge, CleanFiber secured a $28 million Series B investment led by Spring Lane Capital, a sustainability-focused private equity firm. The deal also included a $31.5 million project financing facility. Joining the funding round were Ahlström Invest, AXA Investment Managers, Climate Innovation Capital, and Tokyu Construction/Global Brain.

"This puts us in a very strong position to roll out nationally," Strimling exclaimed when discussing the investment.

The Path Forward

CleanFiber’s journey has been marked by significant technical hurdles. Developing an entirely new process for transforming cardboard into insulation was no easy feat. Moreover, the company had to ensure that its product would perform as well or better than existing cellulose insulation while maintaining a competitive price point.

"We’ve been selling our bales at market prices while refining our production process," Strimling explained. "We haven’t disclosed whether we’re making it profitably yet, but we’ve been able to bring the marginal cost of production down a very significant curve."

The Future of Insulation

With its first-of-its-kind plant operational and successful funding round behind it, CleanFiber is poised for growth. Building additional factories will undoubtedly pose challenges, but the company’s progress suggests that they are well-equipped to overcome these obstacles.

Moreover, Strimling pointed out that more stringent building codes mean new homes require more insulation than ever before. This presents an opportunity for CleanFiber to capitalize on this trend without relying on established players losing market share.

Conclusion

CleanFiber’s innovative approach to transforming cardboard into insulation has the potential to revolutionize the building materials industry. By addressing the challenges associated with contaminants and developing a cost-effective production process, the company is well-positioned for growth. As the demand for sustainable building materials continues to rise, CleanFiber’s solution offers a promising alternative to traditional newsprint-based insulation.

Related News

  • Transportation: Netradyne snags $90M at $1.35B valuation to expand smart dashcams for commercial fleets
  • Fundraising: Perplexity acquires Read.cv, a social media platform for professionals
  • Apps: AI startup Character AI tests games on the web

Subscribe to TechCrunch Daily News

Stay up-to-date with the latest tech news and trends. Get the best of TechCrunch’s coverage delivered to your inbox every weekday and Sunday.

TechCrunch AITechCrunch SpaceStartups Weekly

Join our newsletters to stay informed about the latest advancements in AI, space exploration, and startup news.