The European Investment Bank (EIB) is lending €20 million (around 220 million Swedish kronor) to Swedish sustainable-packaging company PulPac to tackle global plastic pollution. The EIB financing will support development and commercialization of a fiber-based technology developed by PulPac as an alternative to single-use plastics.
Gothenburg-based PulPac is scaling up its patented dry molded fiber technology, which produces rigid packaging from renewable cellulose fibre. The technology represents a disruptive improvement over traditional wet molding — currently the dominant method for fiber-based packaging — by enabling faster production with significantly lower environmental impact.
The company will focus on food and retail applications, including coffee cup lids, plates, cutlery, bottles, fashion hangers, and pharmaceutical packaging.
The European Union is working to reduce plastic pollution as part of a global effort to protect the environment — particularly marine ecosystems, wildlife, and human health. As part of this initiative, the EU has banned the sale of ten single-use plastic items, including plates, cutlery, straws, and cotton buds, and is actively promoting environmentally friendly alternatives.
“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 financing for PulPac is structured as a venture debt loan – a form of growth financing tailored to innovative companies. It is provided under the InvestEU programme, which supports the EU’s green transition and efforts to spur innovation, industrial resilience and sustainable economic growth.
“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,” said PulPac chairman Niclas Möller. “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 investment will accelerate PulPac’s research and development over a five-year period (2025–2029), with a focus on next-generation food service and retail packaging. The project aims to enhance material efficiency, improve product performance, and increase cost competitiveness, while supporting the global scale-up of dry molded fiber through PulPac’s licensing-based business model.
“The EIB has shown great flexibility in tailoring a financial structure that supports industrial innovation,” said PulPac chief financial officer Roderick Sundell. “With this support, we can scale faster, expand our technology portfolio and bring cost-efficient, sustainable packaging to global markets.”
