7 November 2022
Promoter – Financial Intermediary
PANNONIA BIO ZRT
The project consists of three components, namely (i) the construction and operation of a protein isolate unit, (ii) the construction and operation of a soluble fibre extraction unit, and (iii) a research, development and innovation (RDI) programme targeting the development of new protein and fibre concentrates for food, feed as well as pharmaceutical applications.
Additionality and Impact
The Project generates significant additionality and social benefits through positive knowledge externalities and reduced negative environmental externalities by increasing the use of secondary by-products into high-value food and feed products. Hence, the project fosters environmental sustainability by contributing to circular use. It would be harmful if the original, unprocessed by-products would be even partially disclosed to the nature or be poorly valorised in their current form. The project creates positive knowledge externalities by the deployment of advanced technologies in valorising secondary by-products and circular solutions. Being located in an EIB Cohesion Priority region, the project supports also economic and social cohesion.
The EIB has a significant role to play in the support and deployment of industrial scale-up of relevant resource efficient technology and specifically in this specific project, given its complexity and intrinsic "technological risk". The EIB financial contribution is considered as significant based on a sound financial added value and tenor extension as well as signalling effects on other lenders generated by the first time EIB loan to the company which will diversify its funding structure.
The objective is to valorise and increase the circularity of existing processing residues and to accelerate the RDI investments towards producing new, high-value and high-quality protein and fibre concentrates.
The investment programme generates significant social benefits and added value, through circular economy activities reducing the environmental and carbon footprint. Furthermore, it will increase the overall resource efficiency of the promoter's existing industrial activities.
Proposed EIB finance (Approximate amount)
EUR 50 million
Total cost (Approximate amount)
EUR 100 million
Compliance with the Environmental Impact Assessment (EIA) directive 2014/52/EU amending the EIA Directive 2011/92/EU) will be assessed during appraisal, as well as well compliance with the Industrial Emissions Directive (IED) 2010/75/EU and other applicable environmental acquis.
The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the promoter is subject to the EU public procurement legislation then the Bank will require the promoter to ensure that contracts for implementation of the project will be tendered in accordance with the applicable EU procurement legislation as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.
Signed - 22/12/2022