PaperShell has been invited to prepare a Grant Agreement under the EU Innovation Fund — A €83.2 million co-financing investment to scale industry capacity.
PaperShell has been one of the 61 selected of 359 applicants in the Medium-Scale category within the Net Zero Technologies by CINEA to the finalizing Grant Agreement Preparation phase under the EU Innovation Fund 2024, one of the world’s largest climate-innovation programmes. The €83,2 million planned expansion will scale PaperShell’s Tibro-based factory, increasing production of fossil-free and load bearing components. Up to €40.3 million of the total investment is expected to be co-funded through the EU Innovation Fund, given a successful conclusion of the Grant Agreement.
Stronger than plastics, versatile like fibre composites and lighter than metals, PaperShell’s patented material transforms kraft paper into fossil carbon-free components, helping European manufacturers replace greenhouse-gas-intensive materials in new or existing products. The technology has an estimated potential to reduce emissions by up to 99,4%.
PaperShell’s Tibro factory will be expanded by 12 300 m² to a total of 15 600 m², hosting automated, modular composite production lines for components used in construction, transport, consumer goods, electronics and defence, with a designed annual capacity of around 23 000 tonnes by 2030.
The process combines precision press-forming with circular feedstocks based on kraft paper and bio-based binders from agro-waste streams. Nearly five years of scientific testing and close co-development with clients have resulted in solutions where reduced production waste, lower energy use and closed-loop systems enable climate-positive, “from forest to forest” circular bio-economy solutions.
Over ten years, the expansion has the potential to avoid up to 2.7 million tonnes of CO₂e — equivalent to approximately 3.8 million round-trip flights between Stockholm and New York.
“This represents an important step, not just for us, but for Europe’ s materials industry. We’re proving that science, art and capital can work together to strengthen nature’ s own intelligence,” says Anders Breitholtz, Founder and CEO of PaperShell.
”The planned €83.2 million investment, with up to €40.3 million expected from the EU Innovation Fund, gives us the financial foundation to expand production and deliver verified climate benefits at large industrial scale,” says Ragnhild Wiborg, Chair of the Board.
The expanded factory in Tibro, Sweden, planned with a wooden structure, a PaperShell façade and largely powered by solar energy, marks an early step in Europe’s transition to large-scale production of fossil-free, biogenic composites.
Figures are indicative and subject to Grant Agreement finalisation under the EU Innovation Fund.
PaperShell is new material group, building paper back into a stronger, more resilient version of wood. By producing 100% biogenic components stronger than plastics, versatile like glass fibre, and lighter than aluminum, PaperShell offers a fully circular alternative to fossil materials – reducing CO2 emissions towards net zero and beyond while enabling companies to transition into a circular bioeconomy. Visit: PaperShell
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