Elea & Lili raises €2.5M to scale fossil-free absorbent materials

Elea & Lili, a deeptech startup spun out of VTT Technical Research Centre of Finland, has raised €2.5 million in seed funding to industrialise its cellulose-based superabsorbent material, a fossil-free and biodegradable alternative to conventional polymers. The round was led by Lifeline Ventures, with participation from Ikorni Invest Oy Ab and Baltiska Handels Sverige AB.

The company builds on over a decade of biomaterials research at VTT, with the underlying technology and intellectual property transferred to the newly established company. It is focused on replacing fossil-based absorbent materials used in large-scale applications such as disposable hygiene products and agriculture, both of which contribute to persistent plastic waste and microplastic pollution.

At the core of Elea & Lili’s approach is its Cellulose Super Absorbent (CSA), a biomaterial innovation designed to match the performance of traditional materials while being biodegradable and compatible with existing production processes. The material is intended to replace one of the last non-biodegradable components in products such as diapers, while also offering a sustainable solution for water retention and nutrient efficiency in agriculture.

Hygiene and agriculture are equally strategic entry points for us. In both markets, absorbent materials are mission-critical components – and today they are fossil-based. We are replacing them with a scalable biomaterial,

said Tatu Miettinen, CEO and co-founder.

The company is working with industrial partners across the cellulose and biomaterials value chain to scale production from pilot to commercial levels. Its initial go-to-market strategy focuses on hygiene and agriculture, where absorbent materials are critical components and demand for sustainable alternatives is increasing.

The funding will support pilot production, industrial validation, early commercial launches in Europe and the US, as well as continued development of applications across both sectors. Elea & Lili is positioning itself to address a broader shift toward sustainable materials, driven by regulatory changes and growing demand for lower-impact industrial solutions.