According to Auckland
A New Zealand deep-tech company is developing fungi-based ingredients that could reduce manufacturers’ reliance on petrochemicals. Hyphera, founded by biomaterials researcher and University of Auckland alumna Dr. Jess Chiang, is using naturally occurring fungal compounds to create high-performance materials for established industrial products.
Rather than asking manufacturers to adopt entirely new product categories, Hyphera plans to engineer fungal chemistry into ingredients compatible with existing manufacturing processes. Its initial focus is on multifunctional adhesives for engineered wood and other wood-fiber products, including pulp, paper, and packaging — co-founder James Ferrier has described the company’s mission as developing fungal chemistry into adhesives and additives intended to replace petroleum-derived compounds across these same product categories.
The work responds to growing demand for renewable alternatives to chemicals derived from fossil fuels. Manufacturers are under increasing pressure to reduce emissions and improve supply-chain sustainability, while advances in biotechnology are expanding the potential industrial uses of fungi. Mycelium-based materials are already being studied for applications in construction, packaging, textiles, adhesives, and advanced composites.
However, Chiang said environmental benefits alone would not be sufficient to secure commercial adoption. Any fungi-based alternative must also meet industry requirements for functionality, performance, price, and scalability. This means the company must demonstrate that its materials can compete with conventional petrochemical products under real manufacturing conditions, not simply offer a more sustainable origin — as Chiang put it, “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 emerged from Chiang’s earlier experience with BioFab NZ, a venture that commercialized mycelium-based packaging in New Zealand under an international license. Although BioFab successfully introduced the technology to the local market — its biocomposite packaging, made from mycelia and hemp hurds, was tested to perform comparably to expanded polystyrene while decomposing within 30 days — its founders concluded that operating around externally owned intellectual property limited their ability to develop original technology.
The company closed in 2025 when its international licensing arrangement approached renewal. According to Chiang, the team recognized that BioFab was becoming primarily a licensing business instead of the innovation-led technology company they wanted to build. That experience helped shape Hyphera’s emphasis on proprietary research and original material development.
Chiang retained several colleagues from the earlier venture. Hyphera’s founding team includes James Ferrier, who serves as co-founder and chief commercial officer, and Gautam M. Nair, the company’s co-founder and chief product officer. Their different professional backgrounds are intended to support both scientific development and commercial execution.
Chiang also credits the University of Auckland’s entrepreneurial programs with helping her understand how research could become a scalable business. During her doctoral studies — which culminated in a PhD thesis titled “The Potential of Native New Zealand Fungi as Generators of Biomaterials” — she participated in initiatives including the Vanguard Expedition, Velocity Innovation Challenge, and Hatchery programs, gaining early exposure to New Zealand’s startup ecosystem.
Hyphera remains at an early stage, and its fungi-derived adhesives must still prove they can satisfy industrial expectations at competitive costs and production volumes. Nevertheless, the company’s approach reflects a broader shift in sustainable materials research: using biological systems not only to replace fossil-based resources, but also to deliver the technical performance required by existing industries.
References
According to Auckland
