This seems like a nice stepping stone towards something cool, but having the forming happen at a dedicated facility seems to miss the point. The promise of this technology is that instead of:

- make packaging

-> ship to where product is packed

-> ship to consumer

-> ship to recycler

you can:

- grow packaging where product is packed

-> ship to consumer

- consumer composts it in their garden

That is, the packaging should just make one trip instead of three. Hopefully they eventually figure out how to make kits so that shippers can just grow the packaging around the actual product. The hard part will be ensuring that the biomass used as feedstock (likely a waste product from some process nearby to where the product is packed) is actually something that people want in their garden. Doable, but maybe not the kind of thing markets can be trusted to do on their own.