The European Investment Bank (EIB) has provided a €20 million loan to Swedish sustainable packaging company PulPac to combat plastic pollution and develop alternatives to single-use plastics.

This funding will support the development and commercialization of PulPac's innovative Dry Molded Fiber technology, which creates rigid packaging from renewable cellulose fiber, offering a more sustainable option than traditional methods.

Over the next five years, PulPac aims to enhance material efficiency and product performance while expanding its technology portfolio, focusing on applications in the food and retail sectors.

The company plans to produce a variety of items, including coffee cup lids, plates, cutlery, bottles, fashion hangers, and pharmaceutical packaging.

The financing is structured as a venture debt loan under the InvestEU programme, which aims to spur innovation and sustainable economic growth in the EU.

PulPac's chairman, Niclas Möller, expressed gratitude for the EIB's support, viewing it as validation of their strategy to establish a global licensing platform for fiber-based alternatives to plastic.

EIB Vice-President Thomas Östros emphasized that supporting PulPac represents a commitment to innovative solutions that can significantly reduce plastic waste and accelerate the transition towards greener practices.

The EIB Group's support for PulPac is part of a broader commitment to finance projects that contribute to climate action and sustainability across Europe.

This initiative aligns with the European Union's goals to reduce plastic pollution and promote environmentally friendly alternatives, following the recent ban on ten single-use plastic items.

The EIB has tailored a flexible financial structure to support PulPac's industrial innovation and accelerate the scalability of sustainable packaging solutions.

This partnership is expected to enhance PulPac's research and development efforts, improving the efficiency and cost-competitiveness of their packaging solutions.

Overall, this investment marks a significant step towards addressing the global plastic pollution crisis through innovative and sustainable packaging solutions.