Koehler Group invests in the European Circular Bioeconomy Fund

Headquartered in Luxembourg, the European Circular Bioeconomy Fund (ECBF) is the first growth investment fund to be dedicated exclusively to projects in the field of the bioeconomy in Europe, including the accompanying circular economy.

With a targeted fund size of EUR 250 million, the ECBF is set to become an important international financial instrument and to contribute to making Europe climate-neutral by 2050. The ECBF already counts companies such as Nestlé and Neste among its investors, as well as numerous private investors and family businesses

ECBF is a sustainable investment

Koehler Paper entered the flexible packaging paper market in 2019 with a EUR 300 million investment in a new manufacturing line for this type of paper, making this the largest investment in the history of the over 210-year-old company.

The intention is for flexible packaging paper with functions specific to particular applications to replace plastic packaging. In doing so, the company is also tapping into new markets, for example, it plans to start manufacturing bio-based materials for the rubber industry.

Koehler is specifically developing new products that meet the sustainability objectives of both its customers and of society as a whole, thereby establishing a leading role in the bioeconomy, said Dr Stefan Karrer, Chief Operating Officer at Koehler.

The circular economy conserves natural resources and is one of the prerequisites for reaching the EU’s climate objectives in order to become climate-neutral by 2050. The Koehler Group is currently working on a range of innovations with a focus on circular economy concepts. This not only pertains to technologies for Koehler Paper but also to a range of other activities and business models within the Koehler Group.

When developing innovations, we not only make use of internal expertise but also rely on collaborations and start-ups. Our involvement in the ECBF will hopefully help to ensure that targeted funding is provided for promising technological developments, said Dr Stefan Karrer.

According to Koehler Group, participating in the ECBF represents a responsible and sustainable investment into a fund that, unlike many others, is focused on the long term. It works on the basis of a 10-year horizon, and concentrates on companies with growth potential in the bioeconomy, including the bio-based materials and industrial biotechnology sectors, in order to promote the circular economy through new technologies and innovations.

First ECBF company investments already made

However, its contribution is not only a financial one: Its investors share their expertise at regular workshops on various market segments in order to identify promising target markets and investment opportunities for the ECBF.

Koehler sees this as an opportunity to create synergies for the flexible packaging paper business area, for example in order to foster the development of bio-based barrier functions. However, the development of new business models based on the circular economy is also of paramount importance.

Alongside Koehler Group, BÜFA and another private investor participated in the third closing of the ECBF. Michael Brandkamp, General Partner at ECBF Management GmbH is delighted by Koehler’s involvement.

What unites all of the investors in this fund is the desire to stimulate growth in innovative, bio-based companies and to promote solutions to pressing needs in the quest for sustainability. Thanks to its expertise in developing flexible packaging paper, Koehler is an asset to our fund and thus to the further development of the circular economy, said Michael Brandkamp.

Together with the European Investment Bank (EIB), the ECBF has already made its first investments in companies. During the final phase of expansion, up to 25 companies with a high potential for innovation, and that are in an advanced stage of development, are set to receive funding.