Summary sheet
Financing of a first full-scale commercial plant for the recycling of waste textiles into high-quality biodegradable pulp from which new textiles and subsequently clothes can be produced.
The project concerns the design, construction and operation of an innovative full-scale cotton and viscose fibres recycling plant with a capacity of 60 000 tonnes per year.
The project contributes to the Bank's
"Innovation and Skills" and 'Environmental Protection and Natural
resource Efficiency' objective as it concerns the investments by an innovative
SME in the design, construction and operation of an innovative, full-scale
textile recycling plant. The project will lead to the development and
deployment of innovative process technologies with substantial environmental
benefits. The promoter's investment addresses the market failures and gaps
associated with (i) imperfect competition, limited investments and incomplete
markets in the field of innovative processes and sustainable textiles, and
those addressed by (ii) projects which generate wider benefits in terms of
knowledge and the environment. EIB support will therefore address suboptimal investment
situations and accelerate expected benefits to society.
The Bank provides the Promoter with high risk debt financing in order to support the commercialization of its innovation (first full commercial scale plant). This type of financing is difficult to access for innovators with a limited track record and is also referred to as the "death valley". The EIB's contribution
helps provide both diversification with regard to the promoter's banking
partners and flexible drawdown conditions.
The Re:newcell process of recycling cotton and viscose fibres contributes to a circular way of producing fashion and will help achieve the targets set in the 2018 EU Circular Economy Package. The project targets recycling and recovery of textile waste and reduces the quantity of waste currently deposited in landfills, supporting Council Directive 1999/31/EC on the landfill of waste. The project also directly supports EU climate policy goals, including building a competitive EU industry and circular economy.
The Promoter has been assessed by the EIB as a private company not subject to EU rules on public procurement or concessions.
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).
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