Swedish GreenTech company Ekolution, specializing in the production, development, and sales of biobased materials using industrial hemp, has received substantial support in the size of € 8 million (SEK 94.5 million) from Naturvårdsverket (the Swedish Environmental Protection Agency) and successfully raised a Series A financing round, amounting to € 5 million (SEK 61.5 million).
Ekolution is known for its flagship product, Ekolution® Hemp Fiber Insulation, which has gained recognition as a very environmentally friendly building insulations on the market. The product is fully certified and registered with several organizations, including EPD International, SundaHus, BASTA, and Svanens databas.
The Swedish Environmental Protection Agency, through its Klimatklivet initiative, is providing Ekolution with the investment support of up to € 8 million for the construction of a new hemp insulation production facility in Skåne. This funding is part of the EU-funded NextGenerationEU program, aimed at promoting investments in fossil-free future technologies and green transition.
“Naturvårdsverket’s Klimatklivet support is aimed at companies that want to contribute to accelerating the climate transition with investments that permanently reduce greenhouse gas emissions.”Carl Mikael Strauss, Head of Klimatklivet for industry at Naturvårdsverket, explained,
The new high-tech facility, located in Staffanstorp between Malmö and Lund, is set to begin production in the fall of 2024. It has been developed in collaboration with leading natural fiber processing machine manufacturers worldwide. In addition to insulation materials, the facility will produce climate-neutral products using hemp fiber and wood materials from industrial hemp. The factory has the capacity to process approximately 37,000 tons of hemp per year, potentially sequestering 72,000 tons of CO2eq annually (gross).
The integrated production processes and local supply chain enable Ekolution to achieve cost-efficiency in the production of its building materials and become competitively priced. This expansion aims to meet the growing demand for biobased products in various sectors, including construction, agriculture, textiles, furniture, packaging, automotive, and biocomposites.
Investors participating in the Series A round include Hagman Green Business, Southbay Evergreen, Ludvig Friberger, Longrun Capital, Neptunia Invest, Heddinvest, and Terasea.