AGRO-waste from miscanthus and rice crops for a Bio-based,Low-carbon, Optimised, Circular building block

Company and project background

Can you give us a brief overview of your business and the specific project you implemented?

Pedone Working is an Italian company specialised in the development and manufacturing of bio-based materials for sustainable construction. Within the company, BIOMAT CANAPA is the business division dedicated to the research, development, and commercialisation of innovative solutions for natural building, with a strong focus on renewable materials, low carbon technologies, and circular economy principles. Our core products include hemp-lime building blocks and hemp-based construction systems designed to improve the energy efficiency of buildings while reducing their environmental impact.
The AGRO-BLOCK project originated from our ambition to further enhance the circularity of our products by exploring the use of locally available agricultural by-products, particularly rice husks and miscanthus, as partial replacements for hemp shives. These materials are widely available but still underutilised, representing an important opportunity to transform agricultural residues into high-value construction resources, reduce dependence on imported raw materials, and strengthen local supply chains.
With the support of the Up2Circ programme, we developed, optimised, and validated new bio-based formulations, produced industrial-scale prototypes, and evaluated their performance through a comprehensive testing campaign, including mechanical, thermal, acoustic, durability, and fire performance tests. The project is fully aligned with the mission of both BIOMAT and Pedone Working to develop innovative and sustainable construction materials, accelerating the transition towards a more circular, resilient, and low-carbon construction sector.

What motivated you to make your business more circular?

Circularity has always been one of the guiding principles of Pedone Working and its BIOMAT division. Our activities are focused on developing low-impact construction materials made from renewable resources and manufactured through sustainable production processes. AGRO-BLOCK therefore represents a natural evolution of our long-term commitment to innovation and sustainability. Our main motivation was to valorise locally available agricultural biomass, such as rice husks and miscanthus, by transforming underutilised agricultural by-products into valuable raw materials for sustainable construction. At the same time, we wanted to reduce our dependence on raw materials transported over long distances, strengthen local supply chains, and further improve the environmental performance of our products.
The project was primarily driven by our internal commitment to innovation and the continuous development of more sustainable solutions. At the same time, it was reinforced by the growing European focus on the circular economy, the decarbonisation of the construction sector, and the efficient use of local resources. The support provided by the Up2Circ programme enabled us to turn this vision into a concrete project, accelerating the development and validation of new bio-based solutions.

Implementation process

What were the objectives of your project?

The main objective of AGRO-BLOCK was to develop and validate an innovative bio-based building block by replacing part of the hemp shives traditionally used in our products with locally available agricultural by-products, particularly rice husks and miscanthus. The project aimed to demonstrate that these renewable resources could be successfully integrated into construction materials while maintaining the technical performance required for sustainable building applications.
Beyond its technological objectives, the project sought to strengthen the circularity of our production model by reducing dependence on imported raw materials, valorising agricultural residues that would otherwise remain underutilised, and reinforcing regional supply chains. Another key objective was to demonstrate that the new formulations could be manufactured using our existing production line, facilitating future industrialisation and market deployment without requiring significant investments in new equipment.
The project also included clearly measurable technical targets, such as replacing up to 60% of the hemp shives with rice husks and miscanthus, achieving up to 90% recyclability of the final product, validating the new formulations through laboratory and industrial-scale testing, and producing full-scale prototypes to demonstrate their technical feasibility and application potential. These objectives provided a clear framework for assessing both the technical feasibility of the solution and its potential to support a more circular construction sector.

What activities did you carry out as part of your project?

The project was implemented through a structured process covering all the key stages of research, development, validation, and industrial demonstration. In the first phase, we analysed and characterised the raw materials, with particular attention to hemp shives, rice husks, and miscanthus, to understand their properties and identify the most promising formulations.
We then developed and optimised several bio-based mixtures, which were subjected to an extensive laboratory testing campaign to evaluate their mechanical, thermal, and durability performance. The best-performing formulations were subsequently transferred to industrial scale production at our manufacturing facility, where full-scale building block prototypes in different configurations were produced, confirming their compatibility with our existing production line. The project concluded with a validation phase, during which the prototypes underwent specialised performance testing, including acoustic insulation, fire reaction, and thermographic monitoring of a demonstration wall to assess the material’s behaviour under real application conditions.
The initiative involved Pedone Working’s technical and production teams, BIOMAT’s research and development division, the research partner CETMA, which supported the scientific and experimental activities, and accredited laboratories responsible for carrying out the performance tests. This close collaboration between industry, research, and testing organisations made it possible to transform an innovative concept into a validated product ready for the next stages of certification and market introduction.

What feedback did you receive from stakeholders (customers, suppliers etc.)?

Throughout the project, we received very positive feedback from our research partners, accredited testing laboratories, raw material suppliers, and the experts involved in the project activities. In particular, stakeholders appreciated our approach to valorising locally available agricultural by-products, such as rice husks and miscanthus, for the development of innovative materials for sustainable construction. Raw material suppliers also responded positively to the initiative, recognising new opportunities to create value from agricultural residues that had previously been underutilised. This led to the establishment of new contacts aimed at developing long-term collaborations with local companies and strengthening a more circular and resilient regional supply chain. The continuous exchange with our research partner CETMA and the accredited testing laboratories played a key role in improving the project. The results of the experimental activities and the feedback received guided the optimisation of the formulations, the refinement of the manufacturing process, and the selection of the most promising solutions for industrial-scale production. Overall, the dialogue with stakeholders confirmed the validity of our approach and helped shape the next stages of the project, with particular attention to product certification, supply chain development, and future market introduction.

Impact & Outcomes

What are the main results and outcomes of the project for your company?

AGRO-BLOCK has been an important milestone for our company, enabling us to expand our expertise in the development of bio-based construction materials and validate a new building solution based on circular economy principles. The project demonstrated the technical and industrial feasibility of incorporating locally available agricultural biomass, such as rice husks and miscanthus, into the production of sustainable building blocks, creating new opportunities for the expansion of our product portfolio. From an operational perspective, the project confirmed that the new formulations can be integrated into our existing production line without significant modifications, reducing the risks associated with future industrialisation and facilitating market uptake. It also strengthened our collaboration with research partners, accredited testing laboratories, and potential local biomass suppliers, helping to build a more resilient and circular regional supply chain. Although it is still too early to quantify direct impacts on revenue or cost savings, AGROBLOCK has strengthened our position as an innovative company in the field of bio-based construction materials for sustainable building. The project has also enhanced our team’s expertise, generated valuable technical knowledge, and laid a solid foundation for the next stages of product certification, industrialisation, and commercialisation. We believe these achievements provide a significant competitive advantage and support our long-term commitment to a more sustainable and circular construction sector.

Did you detect a positive impact of circular transition for your company and for the environment?

Yes, the project has demonstrated a positive impact both from an environmental perspective and for the development of our company. The introduction of rice husks and miscanthus as partial substitutes for hemp shives has shown that locally available agricultural by-products can be successfully valorised, reducing dependence on raw materials transported over long distances and supporting a shorter, more resilient supply chain. Throughout the project, we monitored several technical and circularity-related indicators. These included replacing up to 60% of the hemp shives with locally sourced agricultural biomass, achieving a potential recyclability of up to 90%, validating the material’s mechanical, thermal, acoustic, durability, and fire performance, and successfully producing full-scale industrial prototypes. These results confirmed that it is possible to increase the circularity of the product while maintaining the technical performance required for construction applications.
From an environmental perspective, we expect a reduction in CO₂ emissions associated with raw material sourcing through the use of locally available biomass, although this benefit will be quantified more accurately in future Life Cycle Assessment (LCA) studies. Overall, the project outcomes met, and in some aspects exceeded, our initial expectations, confirming the effectiveness of our approach and providing a strong foundation for the next steps towards product certification and market introduction.

Which changes have you already implemented?

The project has already led to the implementation of several tangible changes within our company. We have developed and validated new bio-based formulations incorporating rice husks and miscanthus as alternative raw materials, demonstrating their compatibility with our industrial manufacturing process without requiring significant modifications to our existing production facilities. We have also strengthened a product development approach focused on the valorisation of locally available biomass and the optimisation of material formulations through continuous research and testing. The knowledge and experience gained during the project have already been integrated into our research and development activities and now serve as a foundation for the development of future bio-based materials and construction products. In addition, we have initiated collaborations with potential suppliers of locally available agricultural biomass and further strengthened our partnerships with research organisations and accredited testing laboratories, creating a network that will support the next phases of product certification and industrialisation. Although the product has not yet reached the commercialisation stage, many of the innovations introduced through the project have already become part of our daily operations, particularly in the selection of raw materials, the development of new formulations, and our approach to designing construction materials according to circular economy principles.

Lessons learned

What key lessons did you learn regarding circular innovation?

One of the main lessons we learned is that circular innovation requires a multidisciplinary approach and close collaboration between industry, research organisations, and accredited testing laboratories. Developing new bio-based materials is not simply a matter of replacing one raw material with another; it requires careful formulation optimisation, a thorough understanding of material properties, and continuous experimental validation. Another important lesson was the value of locally available agricultural biomass. The project demonstrated that agricultural residues such as rice husks and miscanthus, when properly characterised and incorporated into well-designed formulations, can become high-value resources for the construction sector, while simultaneously reducing environmental impacts and strengthening regional supply chains. For companies wishing to embark on a similar journey, our advice is to invest early in research, testing, and the development of strong partnerships with qualified organisations. It is equally important to evaluate not only the technical performance of the product but also its industrial feasibility and the availability of a reliable supply chain from the very beginning. The most positive surprise was discovering that these new biomass resources could be integrated into our existing manufacturing process without significant modifications to the production line, while still delivering very promising performance. This confirmed that the transition towards more circular business models can be achieved through practical, incremental innovation, without the need to completely redesign existing manufacturing processes.

Did you encounter any challenges?

As with any research and innovation project, AGRO-BLOCK presented several technical challenges. The main one was finding the right balance between incorporating new agricultural by-products, such as rice husks and miscanthus, and maintaining the performance required for a construction material. Each type of biomass has different characteristics in terms of particle size, density, and water absorption, making extensive material characterisation and formulation optimisation essential.
Another key challenge was transferring the formulations developed at laboratory scale to industrial production while ensuring process stability and product consistency. Thanks to the close collaboration with our research partner CETMA and an extensive experimental testing programme, we successfully optimised both the formulations and the production parameters, demonstrating their full compatibility with our existing manufacturing line. From a financial perspective, the support provided by the Up2Circ programme was essential in reducing the risks associated with research, testing, and validation activities. Some challenges still remain, particularly completing the product certification process, further optimising the local biomass supply chain, and preparing the product for market introduction.
However, the project has significantly reduced the technical and industrial uncertainties, providing a strong foundation for the next stages of development.

If you could do your project again, what would you do differently?

Overall, we are very satisfied with both the project journey and the results achieved. If we were to carry out the project again, we would invest even more time from the outset in the characterisation of raw materials and in engaging the supply chain, allowing us to accelerate the optimisation process and the transfer of the new formulations to industrial-scale production. We would also bring forward activities related to product certification and environmental assessment, particularly the Life Cycle Assessment (LCA), in order to obtain a more comprehensive understanding of the product’s environmental performance and market potential at an earlier stage.
Another aspect we would strengthen is the involvement of potential end users and stakeholders from the construction sector during the final stages of the project, enabling us to gather additional feedback to support future market introduction. Rather than avoiding specific activities, we would simplify some experimental steps by building on the experience gained throughout AGRO-BLOCK. The knowledge acquired during the project would allow us to optimise formulation development more efficiently and reach industrial validation more quickly, making the overall innovation process even more effective.

Future plans & recommendations

What are your next steps towards circular transition?

The next steps will focus on completing the product certification process, further optimising the formulations, and preparing the product for market launch. At the same time, we plan to deepen the assessment of its environmental performance through Life Cycle Assessment (LCA) studies and continue our research activities to further improve the performance and circularity of the developed materials. A strategic priority will be to strengthen the local agricultural biomass supply chain by establishing long-term collaborations with farmers, biomass processors, and suppliers of agricultural by-products such as rice husks and miscanthus. At the same time, we will continue working closely with universities, research centres, and accredited testing laboratories to support the development, validation, and market uptake of new bio-based solutions. We also intend to build on the knowledge and experience gained through AGRO-BLOCK to further improve our existing products and develop new bio-based formulations incorporating even wider range of renewable raw materials and locally available agricultural byproducts.
The project has demonstrated that biomass such as rice husks and miscanthus can be successfully incorporated into construction materials while maintaining high technical performance and compatibility with industrial manufacturing processes. This opens new opportunities to further innovate our product portfolio and accelerate the adoption of increasingly circular and sustainable construction materials. We believe that collaboration across the entire value chain—from biomass producers and processors to research organisations and the construction industry—will be essential to accelerate the market uptake of sustainable building materials and support the transition towards a truly circular economy.

Is there any advice you would give to other SMEs looking to implement a circular project?

Our advice is to start from a real business need and view the circular economy as an opportunity for innovation rather than simply an environmental obligation. It is important to identify locally available resources, assess the potential of underutilised materials or byproducts, and define clear, measurable objectives from the very beginning of the project. Another key factor is to build a strong network of qualified partners, involving universities, research centres, accredited testing laboratories, and suppliers. Collaboration between organisations with complementary expertise helps reduce technical risks, accelerate the development of innovative solutions, and address challenges more effectively. We also recommend adopting a gradual approach by testing new solutions first at laboratory scale before moving to industrial validation. This makes it possible to identify and resolve potential issues early, reducing risks during the market introduction phase. Finally, SMEs should not underestimate the importance of product certification, raw material availability, and industrial scalability. Considering these aspects from the outset makes the innovation process more efficient and significantly increases the chances of successfully bringing a new circular product to market.

How can policymakers or financial institutions better support businesses in adopting circular practices?

Programmes such as Up2Circ are extremely valuable because they enable SMEs to test innovative solutions while reducing the financial risks associated with research and development activities. However, to ensure that these innovations successfully reach the market, businesses need more continuous support throughout the entire product development journey. In particular, dedicated funding for the stages following research—such as product certification, industrialisation, and the initial market introduction—would be highly beneficial, as these are often the most challenging and resource-intensive phases for SMEs. We also believe that policies encouraging the adoption of sustainable and circular construction materials would help accelerate the market uptake of these solutions, creating more favourable conditions for companies investing in environmental innovation. Finally, simplifying access to funding programmes and reducing administrative burdens would allow SMEs to dedicate more resources to innovation, ultimately accelerating the development and commercialisation of sustainable products.