Sweden’s PulPac has secured a €20 million venture debt loan from the European Investment Bank (EIB) to accelerate the development and commercialisation of its fibre-based Dry Molded Fiber technology. The financing, equivalent to around 220 million Swedish kronor, is part of the EU’s wider efforts to tackle global plastic pollution and support sustainable innovation.
The Gothenburg-based company is scaling up its patented Dry Molded Fiber process, which enables the production of rigid packaging items such as coffee cup lids, plates, cutlery, bottles, fashion hangers and pharmaceutical containers from renewable cellulose fibres. The technology offers a significant environmental advantage over traditional wet molding techniques by reducing energy use and production time.
“By supporting PulPac, we are backing an innovative and scalable solution that can make a real difference in the global effort to reduce plastic waste and accelerate the green transition,” said EIB Vice-President Thomas Östros. “This financing underlines the EU’s commitment to supporting next-generation technologies with global potential.”
The EIB’s support for PulPac is delivered under the InvestEU programme, which targets projects driving innovation, industrial resilience and the EU’s green transition. The venture debt loan structure provides growth financing tailored to innovative companies seeking to scale rapidly.
PulPac Chairman Niclas Möller called the agreement “both a financial milestone and a strong validation of our strategy to build a global licensing platform for fibre-based alternatives to plastic.”
The investment will support PulPac’s research and development over 2025–2029, focusing on enhancing material efficiency, improving product performance, and increasing cost competitiveness. The company’s licensing-based business model is designed to enable a global scale-up of Dry Molded Fiber solutions.
“The EIB has shown great flexibility in tailoring a financial structure that supports industrial innovation,” added PulPac CFO Roderick Sundell. “With this support, we can scale faster, expand our technology portfolio and bring cost-efficient, sustainable packaging to global markets.”
This move comes as the European Union continues to advance measures to reduce plastic waste, including banning ten single-use plastic items and promoting environmentally friendly alternatives.
