Biotech group BSF Enterprise has secured a £50,000 grant that it will use to begin small scale manufacturing of its lab grown leather products.
Newcastle University spin-out 3D Bio-Tissues Ltd (3DBT), which is part of the group, has been awarded the sum by Northern Accelerator, a growth support programme that is a collaboration between Durham, Newcastle and Northumbria universities along with the Centre for Process Innovation (CPI). It says the funding will be instrumental in moving the product from the laboratory to small scale production and commercialisation, by paying for external resources.
Bosses say the awarding of the grant recognises 3DBT's tissue engineering technology and its potential to be a disruptor in the global leather market. The firm has been working with French fashion brand Maison Amelie Pichard, providing material for the label's handbags and showing it can meet key environmental and ethical challenges in the market.
The grant money will be used to conduct market research to spot high-growth opportunities and identify revenue streams in key sectors including fashion automotive. A "technology roadmap" will be created to set out the steps needed towards a growable manufacturing process, including addressing technical risks, and will provide a plan for developing a pilot factory - a move which 3DBT says will be a pivotal milestone in moving from innovation to commercial scalability.
The grant is just the latest in a string of funding awards for London Stock Exchange-listed BSF Enterprise, which also owns Kerato, Lab-Grown Leather Ltd and a Hong Kong subsidiary. Earlier this month the group raised £500,000 in an oversubscribed share placing which it said would give it an operational cash runway of more than 12 months to help execute its plans.
Dr Che Connon, CEO and founder of 3DBT, said: "This grant award is a pivotal moment for 3DBT. It enables us to accelerate the commercialisation of our lab-grown leather technology and underscores the growing recognition of its transformative potential. With this support, we are well-positioned to deliver a sustainable and scalable alternative to traditional leather."
3DBT says its technology is uniquely positioned to meet demand in the global leather market which was valued at $32.26bn in 2022 and is expected to grow to $47.89bn by 2031.
Northern Accelerator's growth support programme is part-funded by the Ƶ Government through the Ƶ Shared Prosperity Fund, supported by North of Tyne Combined Authority and Durham County Council. It offers spin-outs from partner universities grants to deliver projects that will trigger or accelerator growth in turnover and/or employment.
