From Mushrooms to Materials: How Mycelium Could Redefine Alaska Manufacturing

A new breakthrough coming out of Alaska could change how we build in cold climates — and it starts with fungus.

Researchers have developed an eco-friendly insulation made from mycelium, the root structure of mushrooms, combined with locally sourced wood pulp. The result? A lightweight, compostable, and fire-resistant alternative to petroleum-based foams — one that could transform the way we approach housing, packaging, and energy efficiency in northern regions.

“This is exactly the kind of innovation Alaska needs — local materials, sustainable production, and practical solutions for the cold,” says AKMA Co-Founder Lacey Ernandes.

What’s New: Insulation Grown, Not Manufactured

Traditional insulation materials like foam and fiberglass are made using fossil fuels, generate toxic byproducts, and are difficult to recycle. Mycelium insulation, by contrast, literally grows itself — forming dense, interwoven structures that can be shaped into panels, blocks, or packaging.

Once “baked” to stop growth, these materials become:

• Naturally fire-retardant

• Mold- and pest-resistant

• Fully biodegradable after use

• Surprisingly strong and lightweight

And because the process can use pest-killed trees or wood byproducts, it not only diverts waste but also reduces wildfire risk.

“This isn’t just green manufacturing — it’s smart Alaska manufacturing,” notes AKMA Co-Founder Megan Militello. “We have the raw materials, the cold-climate testing ground, and the people to scale innovations like this.”

Why It Matters for Alaska Manufacturers

The possibilities go far beyond insulation.Mycelium-based materials could play a role in:

• Cold-climate housing construction, reducing energy costs in rural and off-grid communities

• Eco-friendly packaging, replacing Styrofoam for food, seafood, and product shipping

• Fire-safe building panels for public infrastructure and modular structures

For Alaska manufacturers, this represents a new frontier — one where biology meets fabrication. It’s a clear example of how local innovation can reduce import dependency while building new industries around circular, regenerative materials.

A Model for Rural and Regional Production

One of the most promising aspects of mycelium manufacturing is its low barrier to entry.Unlike petrochemical production, mycelium facilities can be small, modular, and distributed — perfect for regional production hubs or rural co-ops.

That means communities could eventually grow and cure their own insulation or packaging products locally — creating new small-business opportunities and keeping economic value in-state.

“Imagine a future where instead of shipping in building materials, villages are growing them,” says Ernandes. “That’s resilience in action.”

Practical Takeaways for Manufacturers

If you’re an Alaska manufacturer, here’s how this innovation may affect you:

1. Watch for pilot projects — construction and packaging trials are expected to expand in 2026.

2. Explore partnerships — especially if you work with wood, paper, or agricultural byproducts.

3. Think circular — integrating waste streams into new product lines could give your company an edge as sustainability becomes a market standard.

4. Prepare for incentives — bio-based manufacturing aligns with state and federal clean tech priorities, which could unlock future funding and grants.

The Bigger Picture

Alaska has always relied on ingenuity to survive — and thrive — in one of the world’s toughest environments. From freight logistics to energy infrastructure, the same principle applies here: local solutions for local challenges.

The mycelium insulation breakthrough is more than a lab experiment. It’s a signal that Alaska’s innovation economy is evolving, with room for manufacturers of all sizes to get involved in sustainable production, research, and product design.

📩 Have a related project or idea? Email connect@akmfg.org — we’re building a database of Alaska-grown innovations to connect manufacturers, researchers, and funders.

Source: Noticias Ambientales, “A Fungus-Based Insulator Promises to Transform Sustainable Construction in the Coldest Regions of the Planet,” November 6, 2025.Read the original article →