Paper from fallen leaves: European Commission will invest €2.5 million in Zakarpattia startup

This was announced on the Facebook page of Releaf Paper, reports Espreso.

One of the co-founders of Releaf Paper is Valentyn Frechka from Zakarpattia. Their startup received 2.5 million euros from the European Commission to build a production line.

"Our dream has come true! Next year we will have the first production line in Europe! The Releaf startup has raised €2.5 million from the European Commission. We have submitted to the commission a project for a pilot production line of cellulose from fallen leaf fibres, which will produce raw materials using a unique technology, which was developed and  patented by the company," the message says.

The total cost of building the factory is 3.5 million euros, so Releaf Paper plans to raise another 1 million euros in the form of a loan from one of the French banks. In addition, the total amount of financing may exceed 10 million euros, because the European Commission fund has also agreed to invest additionally in the further scaling of the project.

"According to the approved development plan, Releaf Paper will use the investment funds to establish two more production lines in different countries over the next five years," the company added.

According to Forbes, the startup is currently considering locations for future production in France, Finland and Ukraine. Implementation of the grant program is planned to begin in April 2023.