"As far as we are aware we are leading the charge for this globally," Ms Heine said.
"The key scientists for the product are all Rotorua-based, which is really cool.
"One of the main benefits is the fact ZealaFoam can be produced without having to change the machinery used to produce polystyrene.
"It is also completely bio-degradable and is non-toxic, so could also be burnt.
"Polystyrene can't be burnt or composted."
She said the next step for the new technology was introducing more biomass into the production process using ground bark.
"We can substitute the polymer with a low-value resource like bark, which is a problem in any saw mill.
"But, until we can make it at a commercial scale, we can't sell it."
Ms Heine said she was in negotiation with a company in Auckland and hopefully will start producing the product in its factory in the next few weeks.
"We do have interest from a United States company to make our first product for them.
"We would love to see New Zealand being the first country exporting with this product.
"It's great for fish, some fruit and flowers, and basically anything polystyrene packaging is being used for."
The product also won the 2013 New Zealand Innovators Award for excellence in research.
She said ZealaFoam was comparable with polystyrene in strength and insulation characteristics, but was not able to stand up to the same temperatures.