Boston-based startup Galy, founded in 2019, is making waves in the textile industry with its innovative lab-grown cotton.
Using a proprietary process that significantly reduces water, land, and fertiliser use, Galy offers a sustainable alternative to traditional cotton farming.
The company recently secured a $50 million supply deal with Suzuran Medical Inc. and raised $33 million in funding led by Bill Gates’ Breakthrough Energy Ventures.
With backing from fast-fashion giants like H&M and Inditex, Galy aims to scale its production and revolutionise the global cotton market.
Galy’s lab-grown cotton slashes environmental impact
Galy’s process involves cultivating cotton cells in a lab, which markedly reduces the environmental footprint compared to traditional farming.
According to a report by environmental consultancy Quantis, lab-grown cotton at an industrial scale can reduce water use by 99%, land use by 97%, and the negative impact of fertilisers by 91%.
This innovative approach addresses the unsustainable practices of conventional cotton farming, which consumes vast amounts of water, pesticides, and fertilisers and has been linked to forced labour in certain regions.
H&M and Inditex investment underscores demand for sustainable cotton
The rise in demand for sustainable cotton has led major fashion retailers like H&M and Inditex to invest in Galy.
After facing boycotts for discontinuing Xinjiang cotton due to forced labour allegations, these companies are now seeking alternatives that meet environmental and ethical standards.
H&M’s circular innovation lab lead, Martin Ekenbark, highlights a growing customer preference for cotton’s natural “handfeel”.
By supporting Galy, these fashion giants aim to mitigate risks associated with traditional cotton sourcing while addressing the increasing demand for sustainable materials.
Galy’s $50 million deal with Suzuran Medical Inc.
Galy’s groundbreaking $50 million deal with Suzuran Medical Inc. will focus on supplying medical-grade cotton, where purity and consistency are crucial.
Since Galy’s cotton production occurs in a controlled lab environment, the risk of contamination is minimised, making it ideal for medical applications.
This ten-year agreement hinges on Galy achieving industrial-scale production. The deal marks a significant milestone, highlighting the potential of lab-grown cotton in specialised markets beyond clothing.
Challenges and opportunities for Galy
Despite its promising innovations and substantial backing, Galy faces challenges in scaling up lab-grown cotton production. Currently, the company can produce only a few kilograms of cotton in the lab.
To compete with traditional cotton, which is much cheaper and more readily available, Galy must scale production while managing costs. According to Peter Turner of Breakthrough Energy Ventures, Galy’s current stage mirrors that of lab-grown meat companies in their early days.
Reducing production costs will be crucial for making lab-grown cotton commercially viable.
Exploring lab-grown cocoa and coffee
As Galy advances its cotton production, it is also exploring lab-grown cocoa and coffee powders.
The company showcased these products at the Breakthrough Energy Summit in London in June 2024, indicating its ambition to diversify beyond textiles.
While these markets present their own challenges, they also offer new revenue streams that could help Galy navigate the complexities of scaling lab-grown cotton.
Success in these areas could attract additional investment, further supporting Galy’s growth strategy.
Can Galy maintain its early-mover advantage?
Currently, Galy faces no major commercial competitors in lab-grown cotton. However, this advantage may be short-lived. As lab-grown cotton gains attention, new players could enter the market, driving competition and innovation.
Given the shrinking investments in climate tech and the biological complexities of scaling lab-grown cotton, Galy’s window of opportunity may be narrow.
The company’s success will depend on its ability to scale production efficiently, lower costs, and continue attracting substantial investment.
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