EIB Lends €20 Million to PulPac to Scale Dry Molded Fiber as Plastic Alternative

EIB Lends €20 Million to PulPac to Scale Dry Molded Fiber as Plastic Alternative

(IN BRIEF) The EIB is extending a €20 million venture-debt loan to PulPac to scale its Dry Molded Fiber technology—an innovative, dry-molding process that converts cellulose fibers into rigid, renewable packaging. Funded under the EU’s InvestEU programme, the financing will support R&D and commercialization from 2025 to 2029, enabling PulPac to license its platform globally. The initiative aligns with EU efforts to ban single-use plastics and foster a circular economy, offering faster production and lower environmental impact than traditional wet-molding methods.

(PRESS RELEASE) LUXEMBOURG, 4-Jul-2025 — /EuropaWire/ — The European Investment Bank (EIB) is lending €20 million (approximately SEK 220 million) to PulPac, a Swedish pioneer in sustainable packaging, to scale its Dry Molded Fiber technology as an eco-friendly alternative to single-use plastics. Based in Gothenburg, PulPac’s patented process produces rigid, renewable cellulose-fiber packaging—such as coffee-cup lids, plates, cutlery, bottles, hangers, and pharmaceutical containers—using a dry molding method that is faster and far less resource-intensive than conventional wet molding.

Structured as a venture-debt loan under the EU’s InvestEU programme, the financing will support PulPac’s research, development, and global commercialization efforts from 2025 through 2029. By accelerating material innovation and reducing production costs, the funds will help PulPac establish a worldwide licensing platform, advancing the EU’s goals to curb plastic pollution and promote circular-economy solutions.

“By backing PulPac, we are supporting a breakthrough technology with the potential to replace millions of tonnes of single-use plastics,” said Thomas Östros, Vice-President of the EIB. “This venture-debt package under InvestEU underscores the EU’s resolve to invest in next-generation, scalable solutions for a greener future.”

PulPac Chairman Niclas Möller commented: “The EIB’s support validates our Dry Molded Fiber as a core element of sustainable packaging. Their flexible financing structure enables us to accelerate global expansion and drive the transition away from plastic.”

PulPac CFO Roderick Sundell added: “With this backing, we can broaden our technology portfolio, enhance product performance, and bring cost-effective, low-impact packaging to international markets.”

Background information

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, the EIB finances investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and the bioeconomy, social infrastructure, the capital markets union and a stronger Europe in a more peaceful and prosperous world.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.

All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in the organisation’s Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB’s financing within the EU is directed towards cohesion regions, where per capita income is lower than the EU average.

High-quality, up-to-date photos of the organisation’s headquarters for media use are available here.

The InvestEU programme provides the European Union with long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps to crowd in private investment for the European Union’s strategic priorities such as the European Green Deal and the digital transition. InvestEU brings all EU financial instruments previously available for supporting investments within the European Union together under one roof, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

PulPac

PulPac is the home of Dry Molded Fiber – a resource-efficient fibre-forming technology that transforms cellulose fibres into responsible packaging with minimal environmental impact. By making our cutting-edge technology accessible worldwide, we enable brands and manufacturers to meet growing market demands for eco-friendly packaging. As a leader in fibre-forming innovation, PulPac is building an ecosystem of industry partners and licensees, helping drive the shift toward a circular economy and making sustainability a standard across the globe.

Media Contact:

Thomas Eriksson
t.eriksson@ext.eib.org

Press Office

press@eib.org
+352 43791

SOURCE: European Investment Bank