How fungi-based materials could replace petrochemicals

The most advanced materials chemistry on the planet wasn't invented in a laboratory. It evolved over millions of years beneath our feet.

For Dr Jess Chiang, biomaterials researcher and alumna of Waipapa Taumata Rau, University of Auckland, that idea has become the foundation of Hyphera, a deep-tech company using fungal chemistry to develop high-performance materials for industries that have long relied on petrochemicals.

Rather than creating entirely new products, Hyphera is engineering naturally occurring fungal compounds into advanced material ingredients that manufacturers can use in products they already make.

The company's early focus is on high-performance and multifunctional adhesives for engineered wood and other wood fibre-based products like pulp, paper and packaging.

It's an ambitious goal, but one Chiang believes is increasingly achievable.

Around the world, manufacturers are searching for renewable alternatives to fossil fuel-derived chemicals as they work to reduce emissions and build more sustainable supply chains.

At the same time, advances in biotechnology are revealing just how versatile fungal systems can be, from construction materials and packaging to textiles, adhesives and advanced composites.

Recent research has identified mycelium-based materials as one of the fastest-growing areas in sustainable materials science, with applications expanding across manufacturing and engineering.

For Chiang, fungi represent far more than an environmentally friendly alternative.

"We're now much more focused on our own, novel idea and developing it into something sustainable," she says.

"The other important lesson we learned was that we can't just pitch something to the market based on it being new and sustainable. It's not just about the green premium and buying something to replace plastic. We also have to meet those other key factors like functionality, performance, pricing and scalability."

Hyphera grew from years of research and entrepreneurial experience rather than a single breakthrough.

Chiang's first venture was with BioFab NZ, in which they commercialised mycelium-based packaging under an international licence.

While the company successfully introduced the technology to New Zealand, its founders eventually recognised the limitations of building around someone else's intellectual property.

The BioFab co-founders made the decision to close the company in 2025, realising it had run its course.

When its license for use of the international mycelium-based packaging partnership was due for renewal, Chiang says there was a realisation it was becoming a licensing company rather than an innovative technology company.

The experience helped her build a team of trusted colleagues. They include James Ferrier, co-founder of BioFab, now co-founder and CCO of Hyphera, and Gautam M Nair, co-founder and chief product officer for Hyphera.

“Through BioFab we realised we worked together really well and that’s really important. It’s why I know it’s so valuable to reach out to the ecosystem early and find like-minded people with the right mindset,” says Chiang.

“That doesn't mean people who are the same as you. You want people with different backgrounds who will challenge you, not for the sake of it, but to help you all grow.

“Our current team has struck a really nice balance where we come from very different backgrounds but can bounce off each other’s ideas very well. I haven’t been in the position of leading a startup before, so to have that support from the team is very encouraging.”

Long before launching Hyphera, Chiang began developing those skills while completing her PhD. She immersed herself in the University's entrepreneurial ecosystem, taking part in the Centre for Innovation and Entrepreneurship's (CIE) Vanguard Expedition, Velocity Innovation Challenge and Hatchery programmes.

Those early experiences also expanded her view of what was possible.

“Being involved in things like the Vanguard programme were really important because they opened my eyes to what was possible from New Zealand and gave me a different perspective. That still happens even today. I was recently invited to visit with the likes of Open Star and Rocket Lab, which makes you connect the dots, that they all started in the same place, as a small start-up.

“Being connected to that through the ecosystem really plants the seed of what you can achieve. It’s so important to be connected to that early on.”