EIB Invests €20M in PulPac to Scale Eco-Friendly Fiber Packaging Globally

In a major move to combat plastic pollution and accelerate the green transition, the European Investment Bank (EIB) has committed €20 million (approximately SEK 220 million) in venture debt financing to PulPac, a Swedish company at the forefront of sustainable packaging innovation. The funding will support the global expansion and commercialisation of Dry Molded Fiber — a cutting-edge, fiber-based packaging technology developed by PulPac as an environmentally friendly alternative to single-use plastics.

The investment, structured under the InvestEU programme, is part of the EU’s broader strategy to foster sustainable economic growth, boost industrial resilience, and drive the green transformation through next-generation technologies.

Reinventing Packaging: From Plastic to Dry Molded Fiber

PulPac, headquartered in Gothenburg, Sweden, has developed and patented Dry Molded Fiber technology, a disruptive advancement over traditional wet-molded fiber techniques. Unlike conventional pulp molding processes that require large volumes of water and long drying times, PulPac’s technology forms packaging directly from dry cellulose fiber, enabling faster, more energy-efficient production with a dramatically lower carbon and water footprint.

This revolutionary method aligns with growing global demand for sustainable packaging, particularly as the EU and other international actors move to phase out single-use plastics.

Focused Applications: From Food to Pharma

With the EIB’s support, PulPac plans to accelerate R&D and industrial roll-out of its technology from 2025 to 2029, focusing on high-volume applications in food and retail sectors. Target products include:

• Coffee cup lids

• Plates and cutlery

• Bottles

• Fashion hangers

• Pharmaceutical packaging

This product portfolio addresses many of the items banned or targeted for reduction under EU single-use plastic regulations, which have already prohibited the sale of plastic plates, cutlery, straws, and cotton buds across the Union.

A Milestone for Innovation and Climate Action

“This financing underlines the EU’s commitment to supporting next-generation technologies with global potential,” said EIB Vice-President Thomas Östros. “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.”

The funding comes at a pivotal moment. As governments, businesses, and consumers increasingly seek viable alternatives to plastics, PulPac’s solution offers a cost-efficient, scalable, and climate-conscious option. The venture debt structure—tailored for innovative, high-growth companies—provides PulPac with flexibility to expand its global licensing platform while maintaining a strong innovation pipeline.

Scaling Through Licensing and Global Collaboration

PulPac operates under a licensing-based business model, enabling manufacturers worldwide to adopt Dry Molded Fiber technology without the need to develop new infrastructure from scratch. This model facilitates rapid global deployment while encouraging local job creation and sustainability across industries.

“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 fibre-based alternatives to plastic.”

Roderick Sundell, Chief Financial Officer at PulPac, also acknowledged the role of the EIB’s tailored financing: “The EIB has shown great flexibility in tailoring a financial structure that supports industrial innovation. With this support, we can scale faster, expand our technology portfolio, and bring cost-efficient, sustainable packaging to global markets.”

EU's Ongoing Commitment to Sustainability

The EU continues to demonstrate leadership in environmental protection through its European Green Deal and Circular Economy Action Plan. The partnership with PulPac complements EU efforts to reduce plastic leakage into oceans, cut greenhouse gas emissions from materials production, and foster innovation in green technology sectors.

This collaboration also supports the EU Plastics Strategy, which seeks to ensure that all plastic packaging in the EU is reusable or recyclable by 2030. By championing alternative materials and technologies like Dry Molded Fiber, the EU is enabling businesses to align with stricter environmental regulations while offering eco-conscious solutions to global markets.

Looking Forward

As PulPac enters a critical growth phase, the €20 million injection will enable the company to ramp up R&D, optimize material performance, and lower production costs—making sustainable fiber-based packaging more competitive and accessible.

With packaging waste at the center of global environmental concerns, and consumer demand for sustainable products on the rise, PulPac’s technology is poised to become a cornerstone of the packaging industry’s green transformation.