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Ekolution secures capital round of SEK 156 million and builds production facility for industrial hemp and hemp insulation in Skåne
Through investment support from the Swedish Environmental Protection Agency and a successful Series A funding round, Ekolution is taking the next step in the production of innovative and sustainable products for the construction and real estate sector.
“We are very pleased with the trust from the Swedish Environmental Protection Agency (Klimatklivet) and an impressive collective of investors. The capital injection will further strengthen our ability to operate a scalable commercial operation where every dollar invested creates maximum climate benefits for a sustainable construction and real estate industry,” says Remi Loren, Founder and CEO of Ekolution.
Ekolution AB is a Swedish GreenTech company specialized in the production, development and sale of bio-based materials from industrial hemp. The flagship product Ekolution® Hemp Fibre Insulation has already established itself as one of the most climate-positive building insulations on the market. The product is fully certified and registered at EPD International, Byggvarudningen, SundaHus, BASTA and included in the Svanen database.
The Swedish Environmental Protection Agency has now granted Ekolution an investment grant of up to SEK 94.5 million for the company's new production plant for hemp insulation in Skåne. The support is provided under the Environmental Protection Agency's initiative Klimatklivet and is funded by EU funds through NextGenerationEU, which aims to support investments in fossil-free future technologies and green transition.
“The Environmental Protection Agency's support Klimatklivet is aimed at companies that want to contribute to accelerating the pace of climate change with investments that sustainably reduce greenhouse gas emissions. Here, the state can participate and share risk with the business community, in order to reduce the cost,” says Carl Mikael Strauss, director of Klimatklivet for Industry, the Swedish Environmental Protection Agency.
In order to further secure the ambition to contribute to Swedish construction and real estate companies becoming climate-neutral, Ekolution has also completed a successful Series A financing round that secured investments of the equivalent of SEK 61.5 million.
The new high-tech machinery park in Staffanstorp in Skåne County, with production scheduled to start in autumn 2024, has been developed in cooperation with world-leading machine manufacturers in the field of natural fibre processing. In addition to insulation materials, the plant will produce climate-neutral products from hemp fiber and wood from industrial hemp. The plant has the capacity to process approximately 37,000 tons of hemp per year with a potential to bind 72,000 tons of CO2eq per year (gross).
Ekolution's new machinery combines all processes under one roof, allowing the hemp fiber insulation to further improve its choline binding equivalent to up to -70 kg of CO2/m3 insulation (including biogenic carbon). The volume of production and the local supply chain also enable Ekolution to achieve cost-efficiency in the production of its building materials and become price competitive.
Bio-based products are in high demand in the construction and real estate sectors, but also in the livestock and agricultural sectors, the textile sector, the furniture and packaging industry, the automotive industry, and as biocomposites. In 2024, Ekolution will be able to meet market demand and offer large and cost-effective volumes that contribute to the green transition.
The investor collective behind the Series A round includes:
- Hagman Green Business, (Gunnar Hagman), former CEO of Skanska Sweden, now Chairman of the Board Ekolution
- Southbay Evergreen (Rickard Dahlberg, co-founder NREP/Urban Partners)
- Ludvig Friberger, ClimateTech Investor, founder of RugVista
- Longrun Capital (The Ljungberg Family)
- Neptunia Invest (Johan Karlsson, founder Slättö)
- Heddinvest (Henrik Jönsson), Lantrbukare/Hampaoldare
- Terasea (Niklas Knöppel), climate entrepreneur
Quote investors:
“It is very gratifying and hopeful that Ekollution has attracted investors in a very tough capital market. It shows the interest in investing in companies with a concrete and clear deal in the green transition. It is also an excellent opportunity for all companies and players in the Swedish construction and real estate market to move from word to action and choose a climate-positive product on good commercial terms,” says Gunnar Hagman, Chairman of the Board of Ekolution.
“We have used Ekolution's hemp fiber insulation in both small houses and larger projects with very good results. Hemp fiber is a natural material that, in addition to binding a significant amount of carbon dioxide and having very good insulation properties, is also great for installers to work with. It feels incredibly positive to be involved and invest in the company to support their production scale-up in Sweden. Ekolution will now be able to offer larger volumes at favorable prices, giving the construction and real estate market the opportunity to renovate and build more sustainably,” says Rickard Dahlberg.
“We look forward to investing together with other industry-savvy investors who share our focus on maximum climate benefits. What makes Ekolution an extra interesting investment for us is that the company's first full-scale factory is now fully funded and Ekolution already has certified products installed at leading industry players. We are impressed with how far the team has managed to develop the company without having previously raised significant capital,” says Johan Frenckner, CEO at Longrun.
For further information, please contact:
- Remi Loren, CEO & Founder, Ekolution
- +46 735 19 80 21
- remi@ekolution.se
About Ekolution AB
Ekolution AB is a Swedish GreenTech company specialising in the production, development and sale of carbonaceous, bio-based building materials from industrial hemp. The company's goal is to promote sustainability and reduce carbon emissions in the construction and real estate industries through its innovative, energy efficient and CO2 negative products.
About Klimatklivet:
Climate Life supports physical investments that reduce emissions of carbon dioxide and other greenhouse gases. The aid goes towards different types of measures that provide high climate benefits.
The funds come mostly from the EU's recovery fund, NextGenerationEU. Investment support from Klimatklivet is given first and foremost to those measures that deliver the greatest, lasting reduction in greenhouse gas emissions per invested krona.
Since its inception in 2015, Klimatklivet has distributed SEK 13.7 billion to companies, organizations and municipalities that have applied for support for climate investments. Together with other funding, a total of SEK 32.8 billion has been invested to reduce emissions. Support is given to both large and small actions throughout the country. The largest project has received SEK 210 million in support.
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