The European Investment Bank has signed a loan agreement of up to €30.75 million with Renewcell from Sweden. The loan was extended under “InnovFin – EU Finance for Innovators”, with the financial backing of the European Union under Horizon 2020, the EU’s programme for research and innovation.

The Sweden-based fashion innovator has devised a way to turn discarded clothing into Circulose®, a pulp from which new fabric can be made, thus boosting the circular economy as a concept in the fashion industry. After proving their concept, Renewcell will use the EIB loan to build their first full commercial-scale textile recycling plant, able to produce 60 000 tonnes of pulp each year, at the Ortviken industrial site near Sundsvall.

See here for more information about Renewcell.