US-based biodegradable material company Danimer Scientific has signed an exclusive partnership agreement with Finnish chemical company Kemira.

The multi-year licence and supply agreement builds on an earlier partnership between the two firms, which was announced in December 2020.

Under their previous agreement, Danimer and Kemira partnered to develop a coating and surface treatment that can make paper and board items home and industrially compostable.

The new biobased barrier coatings are developed using Danimer’s biopolymer polyhydroxy acid (PHA) and will be commercialised in Kemira’s core markets under the new agreement with Kemira.

Danimer’s biopolymer PHA is created from vegetable oils using modern biotechnology and can replace traditional plastics.

The aqueous barrier coatings are heat sealable and offer good resistance to oil, water and grease.

In addition, the coating offers repulpability, which enables the paper to be recycled for full fibre recovery without special equipment.

The PHA coatings can serve as a sustainable substitute for polyethylene, perfluoroalkyl and polyfluoroalkyl substances used in food packaging.

Over the coming years, the partners will launch coatings designed for food and beverage applications in North America and South America, Europe, the Middle East and Africa.

Danimer Scientific chairman and CEO Stephen Croskrey said: “This expansion of our partnership with Kemira represents several important milestones in Danimer’s mission to reduce plastic waste.

“First, this successful project reflects the potential for PHA to serve as a sustainable alternative to traditional plastic across multiple categories.

“Second, this new licence and supply agreement establishes a new revenue stream that will further support the global commercialisation of this material.

“We are grateful for Kemira’s continuing partnership and look forward to helping them bring these coatings to market.”

In August last year, Danimer Scientific acquired US-based biodegradable polymer producer Novomer for $152m.