Summary sheet
The project will finance the construction and operation of a first of a kind production facility in Sweden for pea protein isolate. The facility will process annually 40,480 tonnes of peas sourced locally from the cooperative members.
The project is crucial for enhancing local food production and exports, thereby strengthening agriculture and food preparedness in alignment with the objectives of the Swedish Government, as reflected in the ongoing discussions for the development of the country's Food Strategy 2.0. Furthermore, increasing plant protein production will help reduce the EU's deficit in this product. Peas, being nitrogen-fixing crops, lessen the dependence on synthetic fertilizers within crop rotations. Agronomically, the crop also allows for better pest management and natural weed control when alternated with cereals. These characteristics improve soil health, lower water pollution, reduce greenhouse gas (GHG) emissions, and provide benefits to local farmers.
The operation pertains to the financing of Lantmännen's new production unit for plant-based protein isolates in Lidköping, Sweden. Isolates from yellow peas and fava beans cultivated in Sweden will be used as raw materials for food ingredients. The production of plant-based proteins within the EU is strategic for increasing self-sufficiency, as the EU currently faces a structural deficit of such products, which are essential for the food and beverage industry as well as to produce certain food supplements. Plant-based protein isolates can be utilized in various applications, including as substitutes for proteins from the dairy industry and imported soy protein.
This project is strongly aligned with the EU Green Deal and the European Investment Bank's (EIB) policy priorities concerning the environmental and carbon footprint of the agricultural sector and related industries. Furthermore, the project complements the EU Common Agricultural Policy (CAP), including its rural development interventions. The project is innovative and generates economic opportunities along the value chain in rural areas of Sweden.
The Bank's contribution to the project is supported by a combination of its additionality profile, tenor profile, flexible drawdown terms as well as crowding in other financiers, thereby facilitating the project's financing and its successful implementation and contributing to diversification of borrower's financing sources.
The project is subject to the Swedish environmental Laws that transpose the Environmental Impact Assessment (EIA) Directive (2014/52/EU) (amending 2011/92/EU) and Industrial Emission Directive (IED) 2010/75/EU. The EIB will verify the promoter's compliance with these Directives as well as with other environmental aspects during the due diligence.
The promoter is a private company not operating in a sector covered by EU Directives on procurement. However, the promoter's procurement procedures are expected to be in line with EIB guidelines for private sector projects. The Bank's services will verify details during the project due diligence.