An Auckland, New Zealand-based start-up called Nilo Ltd. has created technology to produce non-toxic adhesives from waste plastic, and Inter Ikea Development B.V. has invested in the company. In particular, it has created a binding agent that can take the place of the urea formaldehyde that is currently used as an adhesive to create engineered wood products including plywood, particle board, and medium-density fiberboard.
A development and access agreement between the parties provides for, among other things, Inter IKEA to purchase a 12.5 percent interest in Nilo. Additionally, it will have a seat on the board of the business.
IKEA has long tried to reduce the formaldehyde emissions linked to its products. Years ago, the business prohibited the use of formaldehyde in the paint and lacquer it used on its products. Due to the potential health concerns connected with formaldehyde from consumer products, the European Union (EU) enacted a limitation on the use of the chemical under the REACH Regulation earlier this year.
Although it can also be used to create MDF, OSB, and plywood, Nilo’s binder is mixed with wood chips to create recyclable particle board in a heated press. Additionally, the binder is less harmful to the environment than urea formaldehyde. “The investment in Nilo underlines our commitment to partnering with creative businesses that can support and hasten the Ikea material innovation goal. We believe the relationship will be fruitful for both parties because Nilo’s strategy for developing this adhesive has significant potential, according to Ikea’s innovation partnership head and new Nilo board member Andrew McIntosh. We wish to support Nilo and assist with the development of the glue since the performance and physical qualities “show promise,” and we both share the goal of getting it into scaled trials.
Regarding the issue of plastic trash, Nilo was established six years ago. Plastic garbage production totals 350 million tonnes annually. Technology that can reuse this plastic trash has been developed by Nilo’s team of engineers and chemists.
Inter Ikea Development B.V., registered in the Netherlands, is part of the Inter IKEA Group, which includes Inter IKEA Systems B.V., IKEA of Sweden AB, IKEA Supply AG and IKEA Industry AB related businesses. Inter IKEA Holding B.V. is the holding company for the Inter IKEA Group.
Other financial backers in Nilo include Icehouse Ventures and K1W1 Ltd., both investment firms, and Clare, a philanthropic investment and giving organisation. They are all based in New Zealand. SDG Impact Japan Inc. of Tokyo, which invests in “Our team has worked incredibly hard on this, and to have our technology recognised by one of the world’s top companies with deep expertise in the market for wood-based boards provides huge validation of what Nilo has created,” said Glen Willoughby, CEO at Nilo. “The knowledge and experience Inter IKEA will bring will greatly advance our technology,” says Nilo.
He continued, “Nilo’s vision goes beyond urea formaldehyde to utilise the enormous volumes of plastic waste of grades and types currently not readily recycled in order to create a range of price and performance competitive adhesives for use in various industrial applications.”
The ability to reprocess end-of-life products made using Nilo adhesives into new ones is also a requirement for the circular economy, according to him. Sustainability efforts, is also an investor in the company.
