Global Infrastructure SherpaPaperShell Secures EUR 40.3M Grant from EU Innovation Fund for Industrial Expansion
PaperShell has secured a material EUR 40.3 million grant from the EU Innovation Fund to support the industrial-scale expansion of its production facility in Tibro, Sweden. This funding will enable the company to increase its annual capacity to approximately 23,000 tonnes by 2030, producing innovative fossil carbon-free load-bearing components from kraft paper. The expanded facility, planned with a wooden structure and largely powered by solar energy, will host automated, modular composite production lines for various industries including construction, transport, consumer goods, electronics, and defense. This grant marks a crucial step in Europe's transition towards large-scale production of biogenic composites, replacing greenhouse-gas intensive materials.
Counterparts (2)
Register free to access full counterpart details, deal analysis, and timeline.
Register free →Deal Analysis
- EUR 40.3 million grant from EU Innovation Fund
- PaperShell facility expansion in Tibro, Sweden
- Target annual capacity of 23,000 tonnes by 2030
- EU Innovation Fund budget of €40 billion (2020-2030)
Source Intelligence
The expanded facility, planned with a wooden structure and largely powered by solar energy, will host automated, modular composite production lines for various industries including construction, transport, consumer goods, electronics, and defense. This grant marks a crucial step in Europe's transition towards large-scale production of biogenic composites, replacing greenhouse-gas intensive materials. PaperShell’s existing production facility in Tibro will be expanded by 12,300 m² to a total of 15,600 m². In December 2025, PaperShell successfully raised SEK 150 million (≈ EUR 15 million) in a fully oversubscribed funding round. The round attracted existing shareholders, and both institutional and private investors, including DNB Asset Management (NO), Kistefos (NO), Course Corrected (SE), Carrick Family Office (SE).
"PaperShell has secured a material EUR 40.3 million grant from the EU Innovation Fund"
"PaperShell has secured a material EUR 40.3 million grant from the EU Innovation Fund"
Timeline
Get the full picture — timeline, source intelligence, and counterpart analysis.
Register free →