A system demonstrator for a circular and resilient wool industry
The Woolution project aims to drive systemic change in the textile industry by developing and testing new solutions for Swedish wool processing. A system demonstrator is being established in Sörforsa, outside Hudiksvall, where the entire value chain for Swedish wool will be brought together to demonstrate how a circular, scalable, and commercially viable wool industry can be created. The system demonstrator will also serve as a development and testing environment for a future decentralized structure that could include multiple regional actors and microfactories.
By bringing together collection, sorting, washing, and product development in a single location, project participants can test and validate AI-based sorting, infrastructure, technology, and business models in a small-scale production setting, which can then be scaled up after the project and adopted by multiple industry players.
Why is this initiative necessary?
Sweden produces around 1,000 tons of wool per year, but more than half of it is discarded – while we import large quantities of raw wool. Today, the textile industry is dominated by fossil-based materials, which contributes to high climate emissions, microplastics, and a strong dependence on imports. Woolution is based on the need to strengthen Swedish preparedness and security of supply by developing a new domestic material infrastructure.
- The system demonstrator brings together the entire value chain, from the collection of sheep's wool to the finished product, and combines:
- AI-based quality assurance of wool, both in industrial environments and on farms
- Resource-efficient washing process with reduced water and energy consumption and extraction of lanolin
- Circular business models where both high- and low-quality wool are utilized in several industries
- Fossil-free logistics and regional collection hubs
The aim of the initiative
- Increase the use of Swedish wool as a bio-based and circular material.
- Reduce climate emissions and microplastics from the textile industry.
- Reduce vulnerability and dependence on imported and fossil-based fibers.
- Increased resilience, food security, and preparedness.
- Strengthen the competitiveness of Swedish companies through traceable materials.
- Contributing to Net Zero 2040 and a more circular society.
- New jobs in rural areas and increased profitability for wool producers.
Related press releases
Jan. 26, 2026 The next step in establishing a wholly Swedish wool industry is now being taken
Funders
Facts
Project: Woolution – scalable solutions for a circular and resilient textile system
Project period:November 7, 2025, to November 6, 2028
Total budget:SEK 20,100,000
Funding:Net Zero Industry Impact Innovation, a joint innovation initiative by the Swedish Energy Agency, Formas, and Vinnova. The project is also funded with support from Region Dalarna and Region Gävleborg.
Project owner:Dalarna Science Park
Project partners: Swedish Textile, Holma-Helsinglands, Sörforsa Business Center, and Axfoundation
