Fibenol: demonstration to impact and navigating the critical stages of biorefinery scale-up

Fibenol is a biotech company working with bio-based materials, which provide a sustainable alternative to high-footprint, non-renewable petrochemicals in products such as glues, insulation materials, compostable and biodegradable plastics and carbon-neutral asphalt. The demonstration plant of Fibenol, co-funded by the CBE JU, is a milestone in the biomaterials industry by validating the new key-enabling wood fractionation technology at an industrial unit scale and introducing a novel biorefinery process concept. Fibenol has identified the first locations for the commercial-scale plant, achieved priority investment project status in Latvia, signed a Memorandum of Understanding (MoU) with the government, and engaged with institutional and commercial banks seeking financing for the planned €700 million project. While the company’s robust IP portfolio underscores its role in transitioning to a sustainable bioeconomy, the final and most capital-intensive phase of scaling up to commercial production is challenging, given the project’s scale and innovative nature.

Additionally, the new geopolitical landscape, which needs heightened defence spending and imposes economic strain in the Baltic region, is driving up financing costs and creating uncertainty regarding the region’s long-term competitiveness and attractiveness for private investors.

Furthermore, while a new biorefining industry would be crucial for the region to create more value from the currently exported low-quality wood, the uncertainty around land use and cutting rates at national and EU levels shy the needed investments into new higher value-added projects. A collaborative approach with policymakers is required to overcome these challenges and ensure stable and supportive policies. EU support and de-risking instruments remain crucial in the final scale-up stage for these success stories to thrive and remain in Europe.

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Fibenol

New CBE JU-funded industrial biorefinery opens in Estonia

Priority investment project status in Latvia (in Latvian)

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• Category: Resources, Factsheets
• Tag: Catalonia, Bioregions-EIB Workshop 2024, Overcoming investment barriers in the forest sector