Labour’s new National Wealth Fund (NWF) has made its first move into Scotland, joining the Scottish National Investment Bank to co-fund a £62m support package aimed at producing biodegradable bottles. The investment will enable Cambridge-based Pulpex to establish its first commercial-scale manufacturing facility near Glasgow.
A Major Investment in Sustainability
The NWF is contributing £43.5m in direct equity, with £10m from the state-owned Scottish bank and the remaining funds from existing investors. The initiative is expected to create 35 jobs and marks a significant step towards sustainable packaging.
Pulpex has developed a unique, fibre-based bottle manufactured from wood pulp. These bottles are designed to be recycled through standard household recycling streams, similar to paper or card.
Strategic Shift in Investment Priorities
The NWF, which replaced the UK Infrastructure Bank, has a broader mandate to support the UK’s industrial strategy in areas where private finance is lacking. At least £5.8 billion of the fund’s capital will target key sectors, including:
- Green hydrogen
- Carbon capture
- Ports
- Gigafactories
- Green steel
Chancellor Rachel Reeves emphasized the NWF’s impact over the last six months, highlighting 8,600 jobs created and £1.6 billion in unlocked private investment. “This latest NWF investment is welcome news, creating jobs, sustainable growth, and opportunity in Scotland,” she said.
Cross-Government Collaboration
Scottish Secretary Ian Murray welcomed the funding, saying: “I’m delighted to see this first investment in Scotland from the new National Wealth Fund.”
Scotland’s Deputy First Minister Kate Forbes also praised the collaboration, stating: “This investment by the Scottish National Investment Bank builds on Glasgow’s rich history of innovation and delivers more green jobs for the future.”
Forbes noted that Scotland has allocated £200 million to the bank for the next financial year. Since its establishment in 2020, the bank has attracted over £1.4 billion in private sector investment.
Pulpex’s Role in Decarbonization
Pulpex CEO Scott Winston underscored the environmental benefits of the investment. “This investment will drive the decarbonization of the packaging sector using leading-edge Material Bioscience to ensure this much-needed alternative to glass and plastic meets its ambitions.”
He also highlighted Glasgow’s strong business ecosystem, calling it “a shining star demonstrating the scalability of Pulpex technology for partners to adopt globally.”
Pulpex currently operates an R&D and pilot production facility in Cambridge and has established partnerships with major global FMCG brands, including Diageo, PepsiCo, Unilever, and Kraft Heinz. The company is actively developing bespoke products for launch in collaboration with these partners.
The Push to Reduce Plastic Waste
Transitioning from plastic and glass to paper packaging is a significant move towards sustainability. According to Water UK, the UK uses approximately 38.5 million plastic bottles daily, with around 16 million ending up in landfill, incinerated, or polluting the environment and waterways. Pulpex’s technology could play a crucial role in addressing this challenge.
