Carbios Advances €230M Recycling Plant Amid Leadership Change and Legal Battle

CLERMONT-FERRAND, France – March 30, 2026 – French biotech firm Carbios today reaffirmed its commitment to building a first-of-its-kind enzymatic PET recycling plant in Longlaville, France, targeting the start of production by the first half of 2028. The announcement signals a critical step forward in the company's mission to industrialize its innovative technology, but it arrives as the company navigates a complex financing structure, reshuffles its leadership, and contends with a contentious legal battle initiated by a former executive.

The Longlaville plant represents a potential turning point for the circular economy, promising to transform hard-to-recycle plastic waste into high-quality, food-grade PET equivalent to virgin plastic. This move from pilot-scale to industrial production is a significant moment for the green technology sector, which has long sought scalable solutions to the global plastic crisis.

A Blueprint for the Circular Economy

The project's advancement is bolstered by an increasingly favorable regulatory landscape in Europe. A recent French decree (IMPR) offers a substantial bonus of up to €1,000 per ton for incorporating recycled plastics from difficult streams into new products. At the European level, the Single-Use Plastics Directive (SUPD) is moving toward recognizing chemically recycled materials, which would help create a stable market for the plant's output.

Leveraging this momentum, Carbios expressed confidence in securing pre-sales contracts for up to 70% of the Longlaville plant's future production capacity in the coming months. The company has already reported agreements covering nearly 50% of its capacity, with partners spanning the cosmetics, beverage, and textile industries. These off-take agreements are crucial not only for guaranteeing future revenue but also for demonstrating market demand to potential financial backers.

The High-Stakes Financing Puzzle

Bringing the ambitious €230 million project to life requires a sophisticated financial architecture. Carbios confirmed it has made significant progress in structuring the necessary funds, which are intended to cover the full construction cost and all associated start-up expenses.

The financing plan rests on three core pillars. The first is €42.5 million in secured public funding, comprising a €30 million grant from the French agency ADEME and €12.5 million in regional aid. The second involves debt financing from partner banks, backed by guarantees from entities like France's Bpifrance and Denmark's EIFO, which are designed to de-risk strategic industrial projects. The final piece is a series of equity contributions from several French partners and from Carbios itself.

To manage the project, Carbios has created a special purpose entity, Carbios 54. Under the proposed structure, Carbios will hold a minority, non-controlling stake. This strategic decision means the plant's significant debt and financial results will not be consolidated onto Carbios' balance sheet, shielding the parent company from direct financial risk associated with the plant's construction and ramp-up. The company and its partners aim to finalize this complex financing package by the third quarter of 2026.

While the Longlaville project moves forward, Carbios maintains a solid independent financial footing. The company reported a cash position of approximately €60 million at the end of December 2025. With a projected cash consumption of around €20 million for 2026 (excluding the Longlaville project), this provides an operational runway extending beyond the next 12 months.

New Leadership for a Pivotal Moment

To steer the company through this critical phase of industrialization, the Board of Directors has appointed Benoît Grenot as Deputy Chief Executive Officer. His extensive background in specialty chemicals and international industrial operations is seen as vital for executing the Longlaville project and managing a separate strategic partnership with Wankai New Materials to build a similar plant in China.

“We are delighted to welcome Benoît Grenot to the Company: his leadership, international experience, particularly in China, and strong operational discipline will be key assets in finalizing the remaining financing steps for the Longlaville project and ensuring the long-term success of the strategic partnership with Wankai,” said Isabelle Parize, Chairwoman, and Vincent Kamel, CEO of Carbios, in a joint statement.

Grenot's career includes over a decade leading the specialty chemicals group Baikowski, where he focused on value creation and international expansion. Prior to that, he held operational management roles within the Saint-Gobain Group, including in China, giving him direct experience in the markets Carbios is targeting.

“I am fully aware of the honor and responsibility of supporting Carbios at this pivotal stage of its development, and I am committed to bringing all my expertise and know-how to these strategic projects,” Grenot stated.

Internal Turmoil Casts a Shadow

Despite the positive momentum on the industrial front, Carbios is grappling with significant internal strife. The company is defending itself against two legal actions initiated by former executive Mr. Philippe Pouletty, one concerning executive remuneration and another seeking access to company documents. These legal challenges have become public, with reports of bailiffs visiting Carbios' premises following a summons filed by minority shareholders over allegations of potential insider trading.

Carbios has vehemently denied the claims, describing them as “unfounded allegations” and part of a destabilization campaign. The company has filed its own complaint for false accusation and states the actions from its former executive are motivated by “personal reasons connected to the circumstances of his departure.” The press release alleges that the departure followed “facts that could be characterized as harassment, repeats threats, and attempts at intimidation.”

While Carbios’ Board of Directors has unanimously reaffirmed its full support for the current management team, the ongoing legal dispute presents a serious distraction and a reputational risk. Navigating this internal turmoil while simultaneously executing a complex, multi-million-euro industrial project and an international expansion will be the ultimate test of the company's new leadership structure and its resilience in the face of adversity.