Ekolution was founded in 2013 by Remi Loren, Naib Woldemariam and Henrik Jacobsson and the startup has gotten lots of interest for it’s innovative approach and large scale production. The company focuses on creating sustainable building materials that significantly reduce carbon footprints. The new funding will support the company’s expansion as it continues to innovate within the green construction sector, with a focus on scaling production and broadening its market reach.

“We are building one of Europe’s most advanced and high-tech processing and manufacturing facilities for industrial hemp,”

says founder and CEO Remi Lorén to Breakit.

The factory being built in Staffanstorp will capture 70,000 tons of carbon dioxide annually at full capacity. This will contribute to reducing Sweden’s total emissions from the construction and real estate sector by half a percent each year.

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The Ljungberg family’s climate-focused investment firm, Longrun Capital, has made its largest investment to date by leading a € 13 million (SEK 150 million) funding round in Ekolution, a GreenTech company aiming to revolutionize the insulation market with a hemp-based product.

Ekolution was founded in 2013 by Remi Loren, Naib Woldemariam and Henrik Jacobsson and the startup has gotten lots of interest for it’s innovative approach and large scale production. The insulation they produce offers the potential to reduce the carbon footprint of construction and real estate companies by over 5% by acting as a carbon sink.

The investment is split between SEK 61.5 million in private capital and up to SEK 94.5 million in funding from the Swedish Environmental Protection Agency’s Klimatklivet program. These funds will enable Ekolution to develop a high-tech machine park capable of processing around 37,000 tons of hemp annually and binding 72,000 tons of CO2 equivalent per year.

“Ekolution has both potential to create significant climate impact and build a scalable commercial business,”

says Remi Loren, CEO at Ekolution.

Johan Ljungberg, CEO of Tagehus and Chairman of Atrium Ljungberg, emphasized the importance of being at the forefront of the green transition, stating that Longrun’s goal is to support companies offering innovative climate solutions.

“Many investors are moving towards more sustainable investments, but I still feel that we stand out in the climate analysis as we primarily seek maximum climate benefit per invested krona. We make the assessment that these companies generally have lower market risk and higher potential, which also means better financial returns,”

says Johan Frenckner

This move highlights a growing trend towards sustainable investments, with Longrun focused on maximizing climate benefits while aiming for strong financial returns.

“Although Longrun has a holistic perspective on the climate crisis, it feels extra exciting to be involved in enabling the commercialization of a product with a direct link to the family’s other operations,”

says Cristina Ljungberg, board member of Longrun Capital.

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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.

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