Finnish deep tech startup Fiberwood secures €3.1M EU LIFE Programme grant to develop eco-friendly insulation from wood side streams

Fiberwood, a Järvenpää-based deep tech startup developing bio-based alternatives to conventional insulation, has secured €3.1 million in funding from the EU LIFE Programme.

About Fiberwood

• Fiberwood, a Finnish startup founded in 2019, upcycles side streams from the mechanical wood industry to create 100% ecological and recyclable insulation and packaging materials. 

• By transforming underutilized wood residues and recycled wood, the company produces high-performance, plastic-free materials that replace fossil-based insulation in construction and packaging.

• Their patented technology results in recyclable, compostable boards with excellent thermal insulation, fire safety, and moisture resistance. Fiberwood’s products enhance the circular use of wood, support environmental goals, and improve industrial competitiveness.

“We believe forests deserve smarter use. We’re turning side streams into high-performance materials that meet real construction needs while reducing environmental impact,” says CEO Tage Johansson.

Investment details

Fiberwood secures funding from EU LIFE Programme, launched in 1992, funds projects focused on environmental and climate action across Europe. It supports initiatives in biodiversity, climate change mitigation, and sustainability, offering funding for projects at different stages. 

Open to governments, NGOs, businesses, and research institutions, LIFE aims to drive innovation and help the EU meet its environmental goals.

The €3.1M EU LIFE grant will support Fiberwood’s LIFEMODWISE project, which focuses on optimising the production process, validating new side-stream sources across Europe, and finalising technical performance.