HG Ventures led a series C round that included Chanel and BASF Venture Capital, with the cash to go to expanding the renewable chemicals provider's production capacity.

US-based sustainable chemical product developer P2 Science completed a $12m series C round on Tuesday led by HG Ventures, a subsidiary of chemical and industrial conglomerate The Heritage Group.

Cosmetics and fashion producer Chanel and chemicals provider BASF also took part in the round, the latter through its BASF Venture Capital unit, joining Xeraya Capital, Elm Street Ventures, Connecticut Innovations (CI), Safermade and Ironwood Capital Connecticut.

P2 has developed technology that converts renewable feedstocks for use in speciality markets like cosmetics, fragrances and flavourings. It will use the cash to expand its manufacturing resources, adding aroma distillation capabilities.

Innovator Capital and Goodwin Procter advised P2 on the round, and HG Ventures’ managing director, Kip Frey, is joining the company’s board of directors. He said: “P2 is exactly the sort of company that we seek to back.

“As sustainability and renewability enter the mainstream of many consumer products markets, P2’s game-changing technology and great team position them to be true leaders in riding this wave for the great benefit of their customers.”

BASF Venture Capital invested $2.5m to co-lead a $9.55m series B round for the company in 2017 with Xeraya Capital, investing alongside Elm Street Ventures, CI and Ironwood.

P2 had raised $1m in a 2014 round that included $500,000 from CI’s Eli Whitney Equity Fund and additional capital from Elm Street Ventures. That funding followed $500,000 in seed capital from CI the previous year.