Key Takeaways

• Solar Foods has secured €77.8 million in funding to establish a commercial food production facility that creates protein from gases.
• The company aims to finalize their Factory 02 investment decision by 2026 and is working on supplier agreements and facility design.
• Solein, Solar Foods’ protein ingredient, has gained regulatory approvals in Singapore and the U.S., and is expected to address the global demand for stable protein sources.

Funding and Facility Plans

Finnish startup Solar Foods has obtained €77.8 million ($89.2 million) in grants and loans from Business Finland to develop its first large-scale food production facility. This facility will utilize gas fermentation to create protein from the atmosphere. However, the funding is contingent on securing additional debt financing.

Founded in 2017 as a spinoff from VTT Technical Research Centre of Finland and LUT University, Solar Foods operates a pilot facility (Factory 01) with a production capacity of 230 tons per year. The company aims to open phase one of its larger facility (Factory 02) in late 2028, targeting a production capacity of 3,200 tons per year. This development will be facilitated through collaborations with partners focusing on real estate, hydrogen production, and energy infrastructure.

Regulatory Approvals and Product Development

Solar Foods has secured regulatory approval for its protein ingredient, Solein, in Singapore and has achieved self-GRAS status in the U.S. The company is currently awaiting a decision from the European Food Safety Authority (EFSA) regarding its submission for novel food approval in the EU.

According to CEO Rami Jokela, the Business Finland funding is conditional upon finalizing the investment decision for the Factory 02 project and arranging the necessary overall financing. Preparations for the investment decision are ongoing, focusing on securing binding customer agreements, networking with partners, advancing facility design, and implementing financing strategies.

Hydrogen Supply and Customer Interest

The engineering design for Factory 02 remains in progress, with strategic partners like GEA and Fortum involved. Solar Foods has established a development agreement with Fortum for energy services, including hydrogen production, which is initially planned to occur on-site.

Customer interest in Solein is strong, particularly among health and performance nutrition companies, as well as major international consumer packaged goods brands. The first consumer product—ready-to-mix protein powder featuring Solein—was recently launched by Ambrosia Collective in the U.S. Consumer products are also available in Singapore, reflecting broader market interest.

Market Position and Product Benefits

The rising prices of traditional protein sources like whey have bolstered the business case for Solein. This innovative protein ingredient offers the food industry a reliable and cost-competitive alternative, combining stable quality with minimal price volatility. Solein consists of about 80% protein by dry weight and also includes dietary fiber, lipids, carotenoids, iron, and vitamin B12, making it a versatile and nutritionally beneficial food ingredient.

Solar Foods continues to position itself as a leader in sustainable protein development, aiming to meet global food security challenges while establishing new supply chains and market opportunities for climate-friendly ingredients.

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