The European Investment Bank (EIB) and The Navigator Company have signed a €40 million loan to speed up the company’s decarbonisation programme. This is the first tranche to be signed of a total €80 million loan approved by the EIB. The Navigator Company is an integrated producer of forestry, pulp, paper, tissue, sustainable packaging solutions and bioenergy with headquarters in Portugal.
Investments will contribute to implement low-carbon production technology and innovative products in Navigator´s existing pulp, paper and packaging facilities in Portugal. Environmental upgrades will focus on the use of renewable energy and energy efficiency measures, among others the conversion of existing limekilns to biomass use and building a new biomass-based boiler, new cogeneration turbines and new photovoltaic plants. Investments will also support the development of innovative biobased products to replace fossil-based plastic packaging and company’s world pioneer plant in Aveiro to produce moulded fibre packaging with eucalyptus pulp. The project will reduce greenhouse gas emissions and enhance energy efficiency, contributing to mitigate the negative externalities of the pulp and paper industry.
The project is part of TechEU the EIB Group’s programme to accelerate EU innovation which aims to mobilise €250 billion in investments by 2027 for startups, scale-ups and innovative companies across Europe. Specifically, the project will contribute to the cleantech line of action of TechEU by fostering industrial decarbonisation and transforming industrial processes with competitive, low-carbon ideas and solutions.
“This project is a great example of how the EIB can support companies on their path towards carbon neutrality while fostering innovation and driving competitiveness. Innovation applied to sustainability makes European industry more resilient and competitive, while giving consumers access to more environmentally friendly products.” said EIB Director General of Financing and Advisory Operations within the European Union Jean-Christophe Laloux.
“This financing agreement is another step in a long-standing relationship with the EIB that has been key in ensuring Navigator’s ambitions are met in time and that we fulfil our mission to share with society not only our results, but also our knowledge, our experience, and our resources in the pursuit of a better future. With this operation, Navigator strengthens its commitment to Sustainable Finance while consolidating the structure of its debt, whose average maturity currently exceeds five years. The repayment profile is properly staggered, contributing to balanced and predictable financial management, reflecting Navigator’s strong financing structure and its credibility in the financial markets.” said Executive Director of The Navigator Company Fernando Araújo.
The loan supports climate action and environmental sustainability as well as the bioeconomy and agriculture two of the eight core priorities set out in the EIB Group 2024-2027 Strategic Roadmap. It is also part of the EIB action plan to support REPowerEU, the programme to increase energy security and speed up the energy transition by reducing the European Union’s dependence on fossil fuel imports. The EIB loan is guaranteed by InvestEU, the flagship EU programme to mobilise over €372 billion of additional public and private sector investment to support EU policy goals from 2021 to 2027.
This new financing underscores the EIB’s ongoing support for Navigator’s decarbonization strategy, supplementing previous financing agreements between the two entities, most recently the one signed in 2023: Portugal: EIB supports Navigator with €115 million loan to speed up decarbonisation investment.
