NEW ZEALAND - Nilo has announced its entry into a development and access agreement with Inter Ikea. Nilo, a deep tech company, has successfully developed and patented an adhesive derived from plastic waste for the production of wood-based panels.

Under this agreement, Inter Ikea Development B.V. has acquired a 12.5% stake in Nilo. Additionally, Andrew McIntosh from Ikea Innovation Ventures has joined Nilo's board of directors to expedite the advancement of the technology as part of the buy-in arrangement.

The world is grappling with a challenge of non-degradable plastic waste, with 350 million tonnes generated annually. Only 9% of plastic is recycled, leading to the accumulation of the remaining waste in landfills, incinerators, and waterways. Nilo's team of chemists and engineers has developed technology to repurpose this plastic waste.

McIntosh remarks, "Our investment in Nilo reflects our dedication to collaborating with innovative startups. The promising performance and physical qualities of the adhesive inspire confidence, and we aim to support Nilo in advancing the technology through mutual efforts to initiate scaled trials."

Nilo CEO Glen Willoughby adds, "Having our technology acknowledged by a leading global firm with profound expertise in the wood-based board market is a significant validation of Nilo's accomplishments. The knowledge and expertise brought by Inter Ikea will significantly propel the progress of our technology."

Ikea has committed to eliminating plastic from all its consumer packaging solutions by 2028, commencing with the removal of plastic from new products by 2025.