PaperShell, a Tibro-based materials firm behind a brand new fossil-free composite materials designed to exchange aluminium, plastics and glass fibre at industrial scale, has secured as much as €40.3 million in financing to increase industrial manufacturing by a brand new flagship manufacturing facility.
The funding comes within the type of a Grant Settlement with the European Fee underneath the EU Innovation Fund – with the manufacturing facility representing the primary full-scale implementation their manufacturing system.
Anders Breitholtz, founder and CEO of PaperShell, feedback: “Europe is getting into a brand new industrial section the place resilience and decarbonisation go hand in hand. PaperShell is already producing fossil-free supplies at industrial scale, and with this growth we are able to meet rising demand from sectors like building and defence. The manufacturing facility in Tibro is not only elevated capability – it’s proof {that a} new industrial manufacturing system is able to scale.”
In EU-Startups’ 2025–2026 protection of superior supplies and adjoining industrial decarbonisation, PaperShell’s financing stands out as one of many bigger disclosed sums alongside Fiberdom in Vantaa, which secured €3.5 million to scale its plastic-free wood-fibre materials, Cellugy in Søborg, which raised €8.1 million to scale a cellulose-based different to microplastics in private care, Aisti in Jyväskylä, which secured a €20 million EIB mortgage to increase bio-based acoustic tile manufacturing, Adsorbi in Gothenburg, which raised €1 million to construct and function a pilot plant for its cellulose-based air-purification materials, and Seprify in Fribourg, which raised €13.4 million to develop cellulose-based industrial elements.
Collectively, these rounds account for round €46 million in funding, and including PaperShell brings the mixed complete to roughly €86 million, indicating continued investor and public-sector backing for corporations changing fossil-based supplies with bio-based industrial alternate options.
Based in 2021, Papershell rebuilds paper into load bearing wooden “sheet steel”, which is reportedly stronger than plastics, as versatile as fiber composites and lighter than aluminium.
In line with the corporate, their materials is 100% biogenic and fossil carbon free (local weather optimistic if circulated), decreasing C02 by 99.4% and designed for materials substitutions – from flat 2D to medium complicated 3D elements.
The fabric is NATO accepted and is already getting used throughout sectors together with building, electronics, defence and transport. PaperShell’s present pilot manufacturing facility in Tibro, in operation since 2023, has three manufacturing strains and has produced greater than 150,000 elements so far.
Building of the brand new facility is anticipated to begin in 2027, with entry into full operation in 2030. At full ramp-up, the ability is anticipated to succeed in an put in manufacturing capability of roughly 23,000 tonnes per 12 months. Over its first ten years of operation, the undertaking is anticipated to keep away from roughly 2.6 million tonnes of CO₂ emissions.
