PulPac has received €20 million in funding from the European Investment Bank (EIB) to scale its patented Dry Molded Fiber technology for bottles, coffee cup lids, pharmaceutical packaging, and more.
Compared to traditional wet moulding, Dry Molded Fiber is designed to speed up the production of rigid packaging from renewable cellulose fibre while also reducing its environmental impact. Its output is set to include bottles, lids for coffee cups, plates, cutlery, fashion hangers, and pharmaceutical packaging.
In turn, this is set to complement the EU’s ban on single-utilize plastic items such as straws, cutlery, plates, and cotton buds in a bid to cut down on plastic pollution.
The financing is structured as a venture debt loan and is provided under the InvestEU programme, which is designed to drive the EU’s green transition by supporting innovations, industrial resilience, and sustainability-minded economic growth.
The investment is set to contribute to PulPac’s research and development from 2025 until 2029, especially its work on ‘next-generation’ food service and retail packaging. This is hoped to improve its efficiency, product performance, and cost competitiveness, all while supporting the global scale-up of Dry Molded Fiber via PulPac’s licensing-based business model.
“By supporting PulPac, we are backing an innovative and scalable solution that can build a real difference in the global effort to reduce plastic waste and accelerate the green transition,” declared EIB vice president Thomas Östros. “This financing underlines the EU’s commitment to supporting next-generation technologies with global potential.”
“We are honoured by the EIB’s backing and its recognition of Dry Molded Fiber as a core part of the shift towards sustainable packaging,” continued Niclas Möller, chairman at PulPac. “This partnership is both a financial milestone and a strong validation of our strategy to build a global licensing platform for fiber-based alternatives to plastic.”
“The EIB has displayn great flexibility in tailoring a financial structure that supports industrial innovation,” added PulPac’s chief financial officer, Roderick Sundell. “With this support, we can scale quicker, expand our technology portfolio and bring cost-efficient, sustainable packaging to global markets.”
Earlier this year, the National Wealth Fund (NWF) and the Scottish National Investment Bank led a Series D investment round for Pulpex’s fibre-based bottle, raising £62 million. This constituted £43.5 million in direct equity from the NWF, with a £10 million co-investment from the Scottish National Investment Bank and the balance from existing investors.
Additionally, Heino Group, Nordic Foodtech VC, Holdix Oy, and Business Finland all contributed to the €3.5 million raised to develop and scale Fiberdom’s patented technology for creating a ‘100% plastic-free’ material. Fiberdom has already commercialized single-utilize cutlery designed to comply with the EU’s Single-Use Plastics Directive, currently available through Finnish retailers and B2B channels.
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