PackBenefit secures €13 million from the EIB to boost sustainable food packaging production

• The European Investment Bank (EIB) has signed a €13 million venture debt agreement with PackBenefit to build a new production plant and support R&D projects in sustainable food packaging solutions.
• Combined with equity funding from Circularity Capital, the investment expands PackBenefit’s capacity of recyclable and compostable food trays for the European market.
• The loan is backed by the European Commission’s research and innovation programme.

The EIB loan will support PackBenefit in expanding its manufacturing capacity to meet growing global demand for high-performance sustainable packaging solutions. The financing will also cover the construction of the company’s second commercial-scale plant in Aldeamayor de San Martín (Valladolid, Spain), enabling the production of an additional 180 million trays per year (ca. 4,500 metric tons). PackBenefit has developed and patented an innovative technology that converts FSC-certified virgin pulp into recyclable and compostable trays using a unique hydraulic thermoforming press.

Ricardo Mourinho Félix, Vice-President of the EIB, said:

“As food consumption continues to grow, the need for sustainable packaging is more pressing than ever. The EIB loan will help PackBenefit scale up its facilities in Spain, delivering recyclable and compostable food trays across Europe. Financing companies such as PackBenefit supports the circular economy, ensuring that materials retain their value for as long as possible through recycling and reuse.”

Mariya Gabriel, European Commissioner for Innovation, Research, Culture, Education and Youth, added:

“In 2020, every EU citizen generated around 177 kg of packaging waste. This project shows that the ambitious EU packaging legislation targets are achievable. Research and innovation are once again delivering the solutions society needs, and EU funding is here to help.”

Philippe Fèvre, CEO of PackBenefit, concluded:

“PackBenefit’s roadmap is aligned with EU principles on environmental protection, while delivering higher food safety standards and reducing resource waste. With EIB support and equity funding from Circularity Capital, we can better meet Europe’s demand for sustainable packaging, accelerate our R&D progress, and expand our innovative product range to reduce the region’s carbon footprint.”

EU support for recycling and composting

The project is funded through equity from Circularity Capital, EIB venture debt financing and third-party loans. The EIB venture loan is financed under the InnovFin – EU Finance for Innovators, part of Horizon 2020, the EU’s research and innovation programme (2014–2020). This combination of EIB expertise and EU support created an innovative financing package for PackBenefit.

With funding from the European Investment Advisory Hub, PackBenefit was identified as a highly innovative company in the recycling and composting sector, receiving support for the preparation of the financing application.

The project contributes to EU Waste Framework and Packaging Waste Directive targets, while supporting the transition to a circular economy under the European Commission’s Circular Economy Action Plan (March 2020).

Environmentally friendly solutions for food packaging

PackBenefit develops circular packaging solutions that improve resource efficiency, extend asset life and reduce waste. Its food trays, made from wood-based virgin pulp, are recyclable, compostable and environmentally friendly. The company also offers complementary sustainable products such as lids and sealing film.

Background information

The European Investment Bank (EIB) is the EU’s long-term lending institution, owned by its Member States. It finances projects that support EU policy goals.

Under Horizon 2020 (2014–2020), the EU and the EIB Group launched InnovFin – EU Finance for Innovators to help innovative firms access finance. Its successor, Horizon Europe (2021–2027), has a budget of €95.5 billion to strengthen Europe’s R&I ecosystem. Financial instruments are now grouped under InvestEU, with a €26.2 billion guarantee to attract public and private investment.

EU R&I programmes foster collaboration, support EU policies, and address global challenges in climate, health and digital technologies. They create jobs, boost competitiveness and help achieve the UN Sustainable Development Goals.

PackBenefit, founded in 2013 and headquartered in Valladolid, Spain, is a European leader in fibre-based food bio-packaging. Its award-winning recyclable and compostable trays, based on a patented thermoforming and coating process, serve clients in catering, fresh food and food-to-go markets.

 

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