PHAXTEC Awarded NSF SBIR Phase II Grant to Advance Sustainable, Plastic-Free Paper Packaging

PHAXTEC to scale breakthrough PHA-based coating technology, enabling fully recyclable and compostable paper packaging without microplastics

Wake Forest, NC, March 30, 2026, PHAXTEC, an innovator in advanced materials, today announced that it has been awarded a Phase II Small Business Innovation Research (SBIR) grant from the National Science Foundation. This highly competitive program supports startups and small businesses in advancing promising technologies from early-stage validation to scalable, real-world applications.

The NSF is one of the world’s leading public institutions for funding scientific discovery and deep-tech innovation. Through its SBIR program, Phase II funding is awarded to companies that have demonstrated strong technical feasibility and are poised to scale their solutions toward commercial impact.

PHAXTEC was selected for its pioneering approach to addressing a critical challenge in sustainable packaging. While paper-based food packaging is widely perceived as environmentally friendly, most products are coated with thin layers of conventional fossil-based plastics. These coatings hinder recyclability, prevent compostability, and contribute to the formation of microplastics when released into the environment — posing risks to ecosystems and human health.

PHAXTEC’s patented technology offers a transformative alternative. By leveraging biogas-consuming microorganisms, the company produces naturally occurring polyhydroxyalkanoate (PHA) coatings that fully replace traditional plastic layers in paper packaging. These biopolymer coatings provide the necessary barrier properties while remaining fully biodegradable and compatible with natural material cycles, behaving similarly to cellulose.

Building on successful Phase I results, PHAXTEC will use the Phase II funding to advance and scale its technology from prototype to industrial application. This includes optimizing production processes and enabling pilot-scale manufacturing to supply partners and customers with materials suitable for commercial paper coating operations.

The impact of PHAXTEC’s innovation is significant:

• Recyclable by design, keeping paper cellulose in circulation
• Naturally compostable, supporting organic waste systems
• Free of microplastics, protecting environmental and human health

“We are deeply grateful to the NSF and to all our partners who believe in our vision and the science behind it,” said Anindya Mukherjee, CEO of PHAXTEC. “This support allows us to take a decisive step toward scaling our technology and creating real impact.”

With this advancement, PHAXTEC aims to redefine paper packaging by ensuring that it can be both functional and truly sustainable — preserving paper as a valuable resource while eliminating reliance on fossil-based plastics.