Estonian cleantech company Myceen, which creates carbon-negative materials from mushroom mycelium for sustainable construction, has secured €2 million in grants to bring these materials to market.

Backers include Enterprise Estonia, Estonian Research Council, German Ministry of Culture and EIT Climate KIC. In addition to the grants, Myceen is advancing a seed investment round of €1-1.5 million, which will aid in the company’s transition to a larger production facility.

As Europe aims to meet its climate goals—reducing emissions by 55% by 2030 and achieving carbon neutrality by 2050—the construction industry faces increasing pressure to lower its environmental impact. Currently, about 75% of EU buildings are considered inefficient, and the EU has set a target to renovate 35 million homes by 2030 to improve energy efficiency.

In cities like Paris and London, properties must meet specific energy standards to be rented or sold, a trend that’s becoming more common as we approach the Climate Goals deadline. This shift creates a significant market opportunity for renovation, particularly for sustainable insulation materials.

Myceen started from the design sector while keeping its research focus on building materials where the mass scale application and impact lies. Last year, the company shipped its products to over 15 countries from the US to Singapore receiving high recognition.

Myceen´s shift toward climate-neutral architecture

“Over the past years, I’ve seen Myceen experience rapid growth. I believe there’s immense potential in the novel mycelium-based materials and innovative products they’re developing. I’m excited to see what Myceen accomplishes next as they continue to conquer new markets,” said Eve Peeterson, Head of Startup Estonia.

“While Mycelium isn’t a novel material to us, Myceen’s design range is something to behold. Over the years, we have seen many designers attempting to tame this incredible, regenerative material and failing to do so. However, Myceen’s consistency, quality, and style not only set this range apart but have also elevated mycelium design to levels previously unimagined,” added client, Petko Tashev, Co-Founder & Managing Director The Home of Sustainable Things.

Myceen is preparing to expand its operations by moving into a pilot factory, where it will develop industrial production technology for its building materials. This expansion is intended to support the company’s efforts to commercialize mycelium-based products, with interest already shown by several house producers and resellers.

In an upcoming project Myceen’s insulation materials are tested in a pilot house in collaboration with Timber Architecture Research Center (PAKK). The test house will be ready in autumn 2024 and mycelium insulation performance will be measured and compared with conventional materials. This will give necessary feedback to move forward with house producers who are already waiting in line.

GOOD TO KNOW

• Co-founded in 2019 by Siim Karro and Karl Pärtel, Myceen develops high-performance insulation and acoustic solutions for sustainable construction by using mushroom mycelium and organic waste, showcasing the principles of circular economy and efficiency.
• As Myceen continues to develop its mycelium technology, the company is positioned to contribute to the ongoing efforts toward more sustainable building practices. With financial backing and plans for expanded production, Myceen is set to explore the potential of mycelium-based materials in the construction industry.

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