The packaging industry has a big problem when it comes to cardboard. The production and disposal of cardboard has significant environmental implications. On the positive side, cardboard is biodegradable and recyclable, with a high recycling rate of 92.9%. However, the production of cardboard is not without its environmental costs. It involves consuming large amounts of water and energy, and using virgin wood pulp contributes to deforestation and habitat destruction. Additionally, cardboard that ends up in landfills decomposes anaerobically, producing methane, a 20 times more potent greenhouse gas.
Fresh virgin wood fibres (and/or starches) are needed to give paper/ packaging (whether recycled or not) desired strength properties…but recycled fibres have limitations to the number of times you can actually recycle; they lose strength over time. The EU Directive 2019/904 for single use packaging mandates laws concerning plastic packaging, which is driving a shift towards use of fibrous materials. As a consequence, growth in demand for sustainable packaged goods is increasing, but shifting packaging materials from plastic to wood fibre has its technical challenges. But there is a solution.
Greenbackers is pleased to introduce Nafici Environmental Research (NER), a woman founded engineering business based in Sussex, UK. They have remarkable commercial potential and are Greenbackers pick for ‘Cleantech Deal of the Week’.
Why is NER important:
- Innovative technology: NER has developed a patented process converting agricultural by products e.g wheat straw, into pulp for paper & packaging (P&P) applications. P&P companies need a % of virgin fibre added to recycled fibre for package strength. NER pulp delivers virgin fibre without cutting down trees. The impact is significantly lower CO2. NER pulp delivers virgin fibre without cutting down trees, using 50% less energy, 95% less water and is economic at small scale.
- Commercial traction: NER has completed successful lab tests of its pulp with industry recognised packaging, moulded packaging and tissue companies. There is strong offtake interest from leaders in the paper packaging industry, with pilot tests completed with leading corrugate packaging producer DS Smith reporting excellent results. The company is ready to scale.
- Investment Traction: Hive Energy (previous Seed Stage investor) has committed £1.m as lead investor to this round and are willing to share their due diligence to any serious investment interest.
- Market potential: The hardwood/Softwood market in Europe alone is estimated to be 18 million tonnes of pulp. NER have assumed £650/tonne average giving a potential addressable market of £11.7b.
- De-risked investment: NER has a highly capable management team with combined experience of over 200 years in pulp and packaging industries. Technical Due Diligence is available on request from NER’s lead investor.
Investment Snapshot:
- Type: Series A Round
- Target amount: £5.1m, with lead investor commitment of £1.0m
- Minimum contribution: £500k.
For further information or to speak with NER directly contact: Annika Borrmann at [email protected]
