Kiilto Ventures invests in RECOMA, a Swedish startup specializing in 100% recycled construction boards

Kiilto Ventures invests in RECOMA, a Swedish startup that turns packaging waste into low-carbon, fully circular construction boards that can replace traditional materials, such as plywood, drywall, and oriented strand board (OSB), without extra cost or effort for builders. And because no virgin materials get added during the manufacturing process, operational waste and water use achieve net-zero.

The construction industry is one of the largest contributors to carbon emissions and waste generation. In Sweden alone, the construction industry accounts for 20% of total CO2 emissions (as much as all cars in Sweden) and a third of the country’s waste.

“We are proud to contribute to construction’s sustainability revolution and the transition towards zero waste and zero emission building materials, helping companies and contractors make needed changes today without new tools, extra knowledge or premium prices,” says RECOMA CEO Max Rosenberg.

Composite packaging – blends of different types of paper and plastics - is great for protecting the integrity of products, but difficult to recycle. That’s why only a small part of packaging goes into new content, the rest is typically incinerated.

With RECOMA’s patented process, packaging waste like food cartons and beverage containers is first sterilised and shredded before being pressed it into boards under high heat. Now single-use items can get recycled and remanufactured into durable components while emitting 80-90% less carbon than the production of traditional, wood-based or gypsum construction boards.

“RECOMA is an example of how when we, as individuals and companies, successfully sort our waste, we enable innovation to happen at the other end – where discarded items can be upcycled into valuable products” says Christopher Mills, Discovery Partner at Kiilto Ventures.

Notable early adopters, including Skanska and Tetra Pak, are leveraging RECOMA to meet corporate and customer environmental targets.

“We see a gap in construction technology and traditional materials, and with new embodied carbon targets that are proliferating around the Nordics, we believe RECOMA is in a great position to decarbonize our building stock,” says Head of Kiilto Ventures Matti Rönkkö.

In 2023, RECOMA recycled around 1 000 tonnes of waste. This investment will enable RECOMA to recycle 7 000 tonnes of waste annually, as of 2024.

“This funding means more machinery, more production capacity, more waste being recycled, and more carbon emissions ultimately being saved in the construction industry” says Rosenberg.

RECOMA’s innovative approach has recently earned them the 2023 New Ideas award from SEB's prestigious Next Awards program.

“The RECOMA founders have managed to crack selling to a really conservative industry. We’re particularly impressed by their ability to execute – from how they collaborate with other startups to multiply their impact and how they work hard to prove their solution works,” concludes Mills.