Spinnova is spinning some new funds into cost-competitive, sustainable fibers.
The Scandinavian textile fiber firm was granted a 12.7 million euros ($13.8 million) research and development loan by Business Finland to develop and scale its fiber production technology while also lowering capital expenditure.
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The R&D loan will be divided into two phases for three and a half years. The first phase—totaling 7.7 million euros (about $8.4 million)—will last two years. The second phase covers the remaining year and a half, evaluated at 4.8 million euros (roughly $5.2 million), but hinders the success of some prerequisites outlined in the first phase.
The first phase focuses on process efficiency, “further fiber recipe development” and automatizing Spinnova’s technology. What the specific technical and commercial criteria targets are—to be achieved within this phase for the next phase to begin—is unclear. However, if that criterion is met, the second phase will focus on product development—for new textiles, among other applications—and process efficiency.
“We are grateful that Business Finland continues to support Spinnova in the commercialization of our fiber technology,” said Juha Salmela, Spinnova’s chief technology officer. “With this significant financing, we are able to speed up our R&D work, which is done together with our partners, in order to increase the cost competitiveness and attractiveness of the unique Spinnova technology.”
Last August, the government organization for innovation funding endowed Spinnova with a two-year grant to develop a pilot program that will develop new fibers from agricultural and textile waste streams as well as refine and recycle Spinnova-branded textile products. The grant was valued at 1.9 million euros ($2.1 million) and was equal to half the value of the project’s total cost of 3.9 million euros ($4.25 million).
“Spinnova has previously received grants from Business Finland, for example, for developing Spinnova fiber from textile and agricultural waste streams,” the Marimekko partner said in a statement. “These earlier development projects continue concurrently with the now-starting R&D project.”
This loan also represents 50 percent of the project’s total cost estimate of 25 million euros (around $27.1 million) for both phases. Its amortizations will start in 2029. The interest rate is three percentage points below the base interest rate, defined by the Ministry of Finance Finland (currently 3.75 percent) or at least 1 percent.