Revolutionary Lobster Shell Technology Developed by Maine Startup Gains National Attention

Diane LaVoie

March 12, 2025

A groundbreaking technology that transforms discarded lobster shells into biodegradable packaging material has put Maine on the map for sustainable innovation and created new value for the state’s iconic fishing industry.

Crustacean Creations, a Portland-based startup founded by marine biologist Dr. Rebecca Sullivan, has developed a patented process that extracts chitin from lobster shells and converts it into a versatile bioplastic that breaks down completely in marine environments within 12 weeks.

“Maine’s lobster industry generates approximately 17 million pounds of shell waste annually,” Sullivan explained. “We’re taking this byproduct that previously cost money to dispose of and turning it into a valuable material that can replace petroleum-based plastics.”

The company’s first commercial product line includes food containers and packaging materials that perform like conventional plastics but decompose harmlessly in soil or water. Major retailers including Whole Foods and L.L.Bean have begun using the packaging, citing its alignment with their sustainability goals.

For Maine’s lobster industry, which has faced challenges from warming waters and changing regulations, the technology represents a welcome new revenue stream.

“We’re now getting paid for something we used to pay to haul away,” said James Peterson, a lobsterman from Harpswell who sells his shells to Crustacean Creations. “It’s not going to make anyone rich, but it helps offset costs and feels good knowing the shells aren’t ending up in landfills.”

The company has established collection points at lobster processing facilities throughout coastal Maine and recently opened a 30,000-square-foot production facility in Biddeford that employs 37 people, with plans to double its workforce over the next 18 months.

The innovation has attracted attention from investors and environmental advocates alike. The company recently secured $12 million in Series B funding, and Sullivan was invited to present at the United Nations Ocean Conference as an example of circular economy principles in action.

Laboratory testing confirms that unlike conventional “biodegradable” plastics that often simply break down into microplastics, the lobster-derived material truly biodegrades into compounds that can be metabolized by marine organisms without harmful effects.

“The beauty of this material is that it comes from the ocean and can safely return to the ocean,” Sullivan said. “Nature has already perfected these molecules through millions of years of evolution. We’re just repurposing them.”

The technology has applications beyond packaging. The company is developing medical products including biodegradable sutures and wound dressings that leverage chitin’s natural antimicrobial properties.

Maine’s Governor highlighted the company in her State of the State address as exemplifying the kind of innovation that can sustain Maine’s traditional industries while addressing global environmental challenges.

“This is exactly the kind of forward-thinking enterprise that bridges Maine’s heritage industries with future opportunities,” said state economic development commissioner Richard Talbot. “It creates jobs, adds value to our natural resources, and solves a significant environmental problem.”

About the author
Diane LaVoie
With over two decades of business journalism experience, Diane LaVoie has been leading our business coverage since 2017. A Nashua native and UNH graduate, Diane spent ten years at the Boston Globe covering regional economics before returning to her home state to raise her family. Her specialty is connecting national economic trends to local impacts, making complex financial news accessible to everyday readers. Diane has developed a respected column, "Granite State Business," featuring profiles of local entrepreneurs and analyzing economic development in New Hampshire's diverse communities from the North Country to the Massachusetts border. She serves on the board of the New Hampshire Small Business Development Center and frequently speaks at community events about the state's economic outlook. Outside of work, Diane is an avid gardener, cookbook collector, and youth soccer coach. She lives in Bedford with her husband and twin daughters.