Building material companies have traditionally relied on old newspapers to create cellulose insulation. However, with the decline of newspapers, the industry has faced challenges in sourcing raw materials. As the demand for e-commerce has increased, the use of corrugated cardboard has risen, with as much as 50 million tons of cardboard boxes ending up in waste and recycling bins each year.

Although cardboard seems like a viable alternative to newsprint for insulation, it contains contaminants such as plastic tape, shipping labels, and metal staples, making the transformation process more complex. Despite this, CleanFiber, a startup, has been pioneering the conversion of cardboard into insulation.

With the ability to produce insulation for approximately 20,000 single-family homes, CleanFiber aims to expand beyond its initial factory in Buffalo, New York, to tap into the $12.5 billion U.S. insulation market. To fuel this expansion, the company raised $10 million in a Series A round and secured a $28 million Series B led by Spring Lane Capital.

The innovative process developed by CleanFiber aims to provide a cost-effective and high-performance alternative to existing cellulose insulation. While the company continues to refine its production process and improve cost efficiency, the demand for insulation remains strong due to stricter building codes requiring higher levels of insulation in new homes.