RENEWCELL TEXTILE RECYCLING DEMO PLANT (EDP)

Promoter – Financial Intermediary

RENEWCELL AB

Location

• Sweden

Description

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.

Additionality and Impact

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.

Objectives

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.

Sector(s)

• Industry - Manufacturing

Proposed EIB finance (Approximate amount)

SEK 311 million (EUR 30 million)

Total cost (Approximate amount)

SEK 778 million (EUR 76 million)

Environmental aspects

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.

Procurement

The Promoter has been assessed by the EIB as a private company not subject to EU rules on public procurement or concessions.

Status

Signed - 30/06/2021