Metsä Spring leads funding round in Fiberwood to make insulation and packaging fossil free

Finnish startup Fiberwood, a producer of 100% ecological wood fibre insulation and packaging materials made from mechanical wood industry side streams, has raised a late seed funding round. The round was led by Metsä Group’s innovation company Metsä Spring, and the round included public financing from Business Finland. The funding will be used to develop and scale up the production capabilities of its pilot plant as it heads into industrial-level continuous production.

Valued at EUR 25 billion, the global insulation market is currently dominated by two groups of products: inorganic mineral wools, such as stone or glass wool, and fossil-based cellular plastic products, like polystyrene. However, these products have more environmental consequences as they are not recyclable or biodegradable.

Fiberwood’s bio-based, plastic-free, and compostable insulation sheets are made from wood pulp and side streams from the mechanical wood industry with special foam-forming technology. The insulation sheets include natural traits of trees as well as air pockets that increase the material’s insulation capabilities. The products are carbon negative as they store and bind carbon dioxide to the wood for as long as it exists. The insulation sheets are easy, safe, and quick to install. Once they are ready to be recycled, the insulation sheets will biodegrade into plastic-free soil.

https://www.metsagroup.com/news-and-publications/news/2023/metsa-spring-leads-funding-round-in-fiberwood-to-make-insulation-and-packaging-fossil-free/