Flagship factory and scaling.

PaperShell’s Bio Material Scaling project expands the existing factory in Tibro into a 15,600 m² flagship production facility. At full ramp-up, the facility will reach an installed production capacity of approximately 23,000 tonnes per year, producing fossil-free, load-bearing components that replace materials such as aluminium, plastics and glass fibre.

The system is built around a modular production architecture that enables high throughput, flexibility across applications, and future replication. Production is
designed for continuous operation and stable industrial performance, supporting large-scale deployment across construction, mobility, consumer goods and electronics. The factory is an Industry 4.0-ready replicable model for industrial deployment across Europe.

It strengthens European industrial capacity by establishing local, resilient production systems and reducing dependency on imported materials. At the same time, it supports the objectives of the EU Green Deal and Clean Industrial Deal by combining decarbonisation, reindustrialisation and long-term resilience.

By scaling a proven production system, the project demonstrates how industrial transformation can be achieved in practice — with measurable climate impact

and commercial viability. As CINEA noted in the Evaluation Summary Report, the project demonstrates “a significant contribution to Europe’s industrial leadership and competitiveness.

Circularity is built into the production system from the outset. Production waste and end-of-life materials are converted into biochar through integrated pyrolysis – enabling permanent carbon storage and regenerative use in local ecosystems. The result is a closed-loop system where material flows are continuously reused and carbon is retained rather than released.

The flagship site in Tibro will function as a demonstration facility for industrial stakeholders, policymakers and the wider public – with open access to production insights, data and best practices to support further deployment across Europe.

• Absolute GHG emission avoidance: ~2.35 Mt CO₂e over 10 years.
• Relative GHG reduction: ~99.4% compared to fossil-based reference materials.
• Cost efficiency: ~€17 per tonne CO₂e avoided.
• Cost reduction: ~30% through automation and modular line design.

• GHG avoidance: 2,348,712 tCO₂eq over project lifetime.
• Industrial output: 31 million bio-based components/year at full capacity.
• Knowledge sharing: open-access replication framework for 5+ EU sites.

• Total investment: €83.2 million.
• EU Innovation Fund support: up to €40.3 million.
• Production capacity: ~23,000 tonnes/year.
• CO₂e avoided (10 years): ~2.35 million tonnes.
• GHG reduction vs fossil-based materials: ~99.4%.
• Cost efficiency: ~€17 per tonne CO₂e avoided.

• Project start: 1 April 2026.
• Construction start: 2027.
• Entry into Operation: January 2030.
• Project duration: 10 years (performance-based contract).