On a gleaming new production line in Brussels, Julien Jacquet shows off a row of milky-white soap bar wrappers — made by what is billed as Europe’s first factory for mushroom-based packaging.

Jacquet’s start-up company, Permafungi, pitches its fully biodegradable “myco-material” as a sustainable alternative to polystyrene and other polluting plastics.

“These ones are designed for hotels,” he explained to visitors on a recent tour of the site.

Profitability remains a distant goal: so far Permafungi operates in a niche market, crafting custom packaging for high-end soap makers.

But the 12-person company has built a reputation on the green economy scene in Brussels by recycling grounds from local coffee shops to grow edible mushrooms over the past decade.

Now, it is looking to shift up a

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