EIB Invests €20 Million in PulPac to Support Scalable Alternatives to Single-Use Plastics

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According to a recent announcement on the European Investment Bank (EIB) website, the EIB has agreed to provide a €20 million (approximately SEK 220 million) venture debt loan to Swedish sustainable packaging innovator PulPac. The funding aims to support the industrial scaling and global commercialisation of PulPac’s Dry Molded Fiber technology — a patented alternative to single-use plastics.

Based in Gothenburg, PulPac has developed a fibre-based packaging solution that uses renewable cellulose material to produce rigid items such as coffee cup lids, cutlery, plates, bottles, fashion hangers, and pharmaceutical packaging. Unlike traditional wet molding, PulPac’s dry-forming process significantly reduces water usage and environmental footprint, while offering faster and more energy-efficient production.

According to PulPac’s official statement, the funding will primarily accelerate its research and development roadmap from 2025 to 2029. The company plans to enhance material efficiency, improve performance across product lines, and reduce production costs to boost competitiveness on a global scale. The ultimate goal is to expand PulPac’s licensing-based business model, allowing partners worldwide to adopt the technology and reduce reliance on conventional plastic packaging.

This investment is made under the European Union’s InvestEU programme, which is designed to bolster innovation, industrial resilience, and sustainable growth across the bloc. The initiative also aligns with the EU’s broader environmental agenda, particularly its efforts to cut plastic waste and transition to a more circular economy. As part of these efforts, the EU has already banned several single-use plastic items, including straws, plates, and cotton buds.

“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 in a public statement.

PulPac Chairman Niclas Möller expressed appreciation for the funding, describing it as both a financial milestone and a strategic endorsement of PulPac’s long-term vision. “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,” Möller said.

Chief Financial Officer Roderick Sundell added that the financing structure offers the flexibility needed to scale up operations efficiently: “With this support, we can scale faster, expand our technology portfolio, and bring cost-efficient, sustainable packaging to global markets.”

As the demand for eco-friendly alternatives to plastic continues to grow, this partnership between the EIB and PulPac is seen as a significant step forward in Europe’s commitment to combating plastic pollution and fostering next-generation green technologies.

Source: EIB