With support from Boast's SR&ED, the BC startup is moving sustainable plastic alternatives from the lab to the market.
For STK BioThe fight to replace plastic starts with cost.
The startup has already proven that creating biodegradable alternatives is possible, but achieving the price of conventional plastic requires continuous experimentation and a constant influx of capital to finance it.
“Let’s just create value for customers and they will in turn convert and therefore make their model more sustainable.”
Daniel Shum, CTK Bio
“We have to be able to match or even be below the cost of traditional plastic to disrupt this plastic industry,” Daniel Shum, chief operating officer of CTK Bio, said at a press conference. episode from the What The Tech podcast. This requires tireless research and experimentation.
At CTK Bio's lab in Surrey, British Columbia, the work starts with what most companies throw away.
Hemp byproducts from the cannabis industry, biomass streams accumulating inside plants, and other high-value waste are becoming the building blocks for a new kind of bioplastic.
The company converts landfilled plant and plastic waste into resins that can be turned into fully biodegradable products, from camp cutlery to golf tees.
Shum's goal is to make sustainability the default choice.
“Let’s just create value for customers and they will in turn convert and therefore make their model more sustainable,” he said.
Achieving this goal means carrying out three separate stages of research and development: synthesizing polymers, refining their composition, and processing them for mass production. It also requires close collaboration with global manufacturers to develop materials that precisely meet their needs.
This level of trial and error doesn't come cheap. The Canada R&D program helps offset costs, but can be difficult to access. CTK Bio's first R&D supplier was chosen mainly on price, but the experience was unsuccessful.
“Needless to say, we had a terrible experience with them,” Shum said.
In the second year, the company turned to Boastwhich combines technical knowledge and R&D tax expertise to help companies quickly access R&D tax credits.
“Typically, it can take a year or two before anyone even gets it and understands what we're trying to do,” he said. Boast's team was able to quickly learn the CTK Bio language and turn complex science into compelling R&D statements that returned more capital to the business.
In addition to receiving loans, CTK Bio also took advantage of Boast. Quick Fund A program that allows companies to gain early access to a portion of their R&D expense reimbursement. For a growing cleantech startup, early access to cash may allow teams to begin activities that will increase their SR&ED eligibility in the next quarter.
“I can’t tell you how many times we’ve been able to use this program to our advantage from a cash flow standpoint, it’s very helpful,” Shum added.
This year, CTK Bio officially launched its solutions platform to help businesses comply with Canada's ban on single-use plastics, and recently began shipping its products to businesses in the United States.
But at home, the adoption stalled. Current legislation still classifies compostable plastics as common single-use items, giving businesses little incentive to adopt them.
Instead of waiting for regulation to catch up, CTK Bio invest more resources into new research and development, including the development of a compostable film that can adhere directly to paper. This is expensive and repetitive work that depends on ongoing access to funding.
For Shum, programs like SR&ED and partners like Boast make this possible.
If you're innovating in the cleantech space, Boast can really benefit from your research and development. Find out more.
Image provided STK Bio.
