Fiberwood receives EU grant to enhance wood industry circularity

Deep tech start-up Fiberwood has secured € 3.1 million (US$ 3.6 million) in funding from the EU’s LIFE (L’Instrument Financier pour l’Environnement) program to help reduce the carbon footprint of its buildings. The Finnish company refines wood industry side streams into packaging and building materials.

Fiberwood says it plans to use the grant to scale up its sustainable insulation solutions made from wood industry side streams and accelerate its expansion into broader European markets.

The company aims to add value to the forest industry and promote the circular use of timber. Its plastic-free, recyclable fiber boards are designed to replace fossil-based insulation in construction and support the EU’s transition to low-emission building practices.

“Forests deserve smarter use,” comments Tage Johansson, CEO at Fiberwood. “We’re turning side streams into high-performance materials that meet needs while reducing environmental impact.”

The company, founded in 2019, has developed a patented technology that can make “recyclable and compostable boards with thermal performance, structural durability, fire safety, moisture resistance, and material longevity.”

The patented technology is said to open new possibilities for sustainable design. 

“Our material allows customers to make a sustainable leap without changing how they design or sell their products, giving them a competitive edge with minimal disruption,” adds Johansson.

Industrial-scale factory

Fiberwood is building a demonstration production line in Järvenpää, Finland, to support pilot projects for its customers. The company says the EU LIFE grant will help optimize production at its first industrial-scale factory, validate new side streams, and complete final performance testing.

According to Fiberwood, its B2B customers include “leading” building materials companies in the Nordic region and other European markets. These customers are expected to integrate Fiberwood’s fiber components into their existing product lines and market them under their brands.

Prior to receiving the LIFE funding, Fiberwood raised €10.7 million (US$12.13 million) from investors, including Metsä Spring, Stephen Industries, and public innovation funds. The company says it is preparing for international expansion and actively seeking partners across the European value chain.