With 99.4% lower CO₂ than conventional materials, PaperShell wins up to €40.3 million for new Tibro factory

PaperShell, a Swedish material science innovator, has secured up to €40.3 million in financing from the EU Innovation Fund to establish a new, large-scale factory. This funding marks a significant step towards industrial decarbonisation, enabling PaperShell to replace fossil-based materials like aluminium, plastics, and glass fibre with their novel, fossil-free composite. The development underscores a broader European trend toward industrial resilience and sustainability, with the new facility poised to meet growing demand in sectors such as construction and defence. The proprietary material developed by PaperShell is a biogenic, fossil carbon-free composite derived from rebuilt paper, engineered to mimic the strength of metal sheets while offering the versatility of fibre composites and superior lightness compared to aluminium. This innovative material boasts a remarkable 99.4% reduction in CO₂ emissions compared to conventional alternatives and is already NATO approved for applications in construction, electronics, defence, and transport. The planned Tibro factory, expected to begin construction in 2027 and reach full operation by 2030, will feature an annual production capacity of approximately 23,000 tonnes, projecting the avoidance of 2.6 million tonnes of CO₂ emissions over its first decade. This substantial investment in PaperShell reflects a growing European commitment to fostering industrial sovereignty through green innovation, as evidenced by similar funding rounds for companies like Fiberdom, Cellugy, Aisti, Adsorbi, and Seprify. The collective €86 million raised by these companies, including PaperShell, highlights significant investor and public-sector confidence in bio-based alternatives to traditional fossil-derived materials. This trend is crucial for reducing the EU's reliance on foreign supply chains and building a more sustainable, resilient industrial future.