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EIB's loan pact with Sweden's Renewcell to boost fashion circularity
05 Jul '21
2 min read
Pic: EIB
The European Investment Bank (EIB) recently signed a loan agreement of up to SEK 311 million (€30.75 million) to fashion industry innovator and recycling company Renewcell for its first commercial-scale factory in Sweden’s Sundsvall city. The company was founded in January 2012 by a group of scientists at KTH Royal Institute of Technology in Stockholm.
Renewcell’s product Circulose is the only commercially available textile-to-textile recycled material of virgin equivalent quality.
The credit line is supported under EU Finance for Innovators (InnovFin), funded by the European Union’s Horizon 2020 research and innovation programme.
The company has devised a way to turn discarded clothing into Circulose, a pulp of which new fabric can be made, thus boosting circular economy as a concept in the fashion industry, an EIB press release said.
After proving its concept, Renewcell will use the EIB-loan to build its first full commercial-scale textile recycling plant that can produce 60,000 tonnes per year at the Ortviken industrial site near Sundsvall.
In its bid to make the fashion industry more circular, Renewcell’s technology can be an important factor in reaching the EU’s target for waste reduction, as well setting the tone for the development of the European recycling industry, the press release said.
The company is able to supply commercial volumes of 100 per cent textile-to-textile recycled materials, and is now scaling up to meet the growing demand for its product Circulose with backing from Europe.
EIB is the long-term lending institution of the EU owned by its member states. It makes long-term finance available for sound investment to contribute towards EU policy goals.
Renewcell’s product Circulose is the only commercially available textile-to-textile recycled material of virgin equivalent quality.
The credit line is supported under EU Finance for Innovators (InnovFin), funded by the European Union’s Horizon 2020 research and innovation programme.
The company has devised a way to turn discarded clothing into Circulose, a pulp of which new fabric can be made, thus boosting circular economy as a concept in the fashion industry, an EIB press release said.
After proving its concept, Renewcell will use the EIB-loan to build its first full commercial-scale textile recycling plant that can produce 60,000 tonnes per year at the Ortviken industrial site near Sundsvall.
In its bid to make the fashion industry more circular, Renewcell’s technology can be an important factor in reaching the EU’s target for waste reduction, as well setting the tone for the development of the European recycling industry, the press release said.
The company is able to supply commercial volumes of 100 per cent textile-to-textile recycled materials, and is now scaling up to meet the growing demand for its product Circulose with backing from Europe.
EIB is the long-term lending institution of the EU owned by its member states. It makes long-term finance available for sound investment to contribute towards EU policy goals.
Fibre2Fashion News Desk (DS)
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