Malmö, Sweden-based Ekolution, a buildtech company, announced that it has secured SEK 150M (nearly €12.64M) from the Ljungberg family’s climate initiative, Longrun Capital.
Longrun Capital is one of the leading investors in Ekolution. It aims to revolutionise the market for insulation with a carbon-negative material.
Ekolution specialises in hemp-based insulation that is not only eco-friendly but also carbon-negative. This means it acts as a carbon sink, absorbing more CO2 than it emits.
This insulation can help construction and real estate companies reduce their carbon footprint by over 5 per cent.
Johan Ljungberg, CEO of Tagehus and Chairman of the Board of Atrium Ljungberg says, “For us, it is important to be at the forefront of the green transition.”
“We do this not only as a customer in our construction and real estate business but also by financing companies with great climate benefits and thereby ensuring the supply of new innovative solutions,” adds Ljungberg.
Building a new high-tech manufacturing facility
Ekolution reports it will construct a new high-tech manufacturing facility in Staffanstorp, Skåne county, set to begin production in autumn 2024. It has been developed in partnership with leading machine manufacturers in natural fiber processing.
Besides the production of insulation materials, the company will also focus on creating climate-neutral products using hemp fiber and industrial hemp wood.
Ekolution has implemented new machinery that integrates all production processes for hemp fiber insulation under one roof.
This innovation has improved choline-binding, resulting in a significant reduction of up to -70 kg CO2 per cubic meter of insulation, including biogenic carbon. The company benefits from increased production volume and a local supply chain, leading to cost efficiency and competitive pricing for its building materials.
A green construction revolution
In the pursuit of Europe’s goal to achieve net-zero emissions by 2050, only 25 per cent of the necessary technologies are currently in the commercial phase, however, 45 per cent are nearing commercialisation.
Ekolution’s capital round, backed by SEK 61.5M (nearly €5.2M) in private funding and potential support of up to SEK 94.5M (nearly €7.99M) from the Swedish Environmental Protection Agency (Klimatklivet), will facilitate the development of advanced machinery.
This machinery will allow Ekolution’s production facility to process approximately 37,000 tons of hemp annually, leading to the sequestration of 72,000 tons of CO2 equivalent each year.
Johan Frenckner, CEO of Longrun Capital says, “Many investors are moving towards more sustainable investments, but I still feel that we stand out in the climate analysis as we primarily seek maximum climate benefit per invested krona.”
“We make the assessment that these companies generally have lower market risk and higher potential, which also means better financial returns.”
Remi Loren, founder and CEO of Ekolution says, “With Longrun as an investor, we show that Ekolution has the potential to create significant climate impact and build a scalable commercial business.”
“The capital injection will further strengthen our ability to run a scalable commercial operation where every kroner invested creates maximum climate benefits for a sustainable construction and real estate industry,” adds Loren.
Brief about Longrun Capital
Founded in 2021 by Cristina Ljungberg and Johan Frenckner, Longrun Capital is dedicated to maximising climate impact for every krona invested. The firm has made five investments thus far, with its largest and most real estate-related investment being in Ekolution.
Despite this real estate connection, Longrun’s investment focus is not limited to construction but extends to key enabling technologies in the energy sector and new materials.
Cristina Ljungberg says, “Although Longrun has a holistic perspective on the climate crisis, it feels extra exciting to be involved in enabling the commercialisation of a product with a direct link to the family’s other operations.”
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