Solar Foods has announced the receipt of a €10 million grant from Business Finland, a government agency under the Finnish Ministry of Employment and the Economy.

This funding is part of the European Commission's €600 million initiative known as Important Projects of Common European Interest, aimed at advancing clean food technologies across Europe.

Founded in 2017, Solar Foods has developed a unique method for producing protein, branded as Solein, by utilising carbon dioxide and electricity.

This innovative approach allows for production independent of traditional agricultural constraints such as climate variability and arable land availability, positioning Solar Foods as a key player in the future of sustainable food production.

The recent grant follows an earlier €33.6 million funding received in 2022, which was allocated for the establishment of Solar Foods Factory 01. Launched in April 2024, this facility is currently capable of producing 160 tonnes of Solein annually.

The new funding will facilitate the commissioning of Factory 02, a significantly larger commercial-scale production site estimated to be 50-100 times the size of Factory 01. This expansion is critical to achieving a production cost of €4.3-5.2 per kilogram of Solein, with expectations for further cost reductions through ongoing technological advancements.

Pasi Vainikka, CEO of Solar Foods, said: "We are extremely pleased to receive this additional funding for research, product development and the pre-engineering phase of Factory 02. We are continuing according to plan towards the realisation of Factory 02, of which we will have more news soon. When realised, Factory 02 is a unique project in terms of science, technology and climate impact."

The new facility will not only enhance production capabilities but also support Solar Foods in obtaining novel food regulatory approval and launching new products into the market. The company is currently in discussions with Business Finland for potential additional grants to further bolster its growth strategy.

Jim Mellon, co-founder and executive chair of Agronomics, which holds a stake in Solar Foods, added: "Solar Foods is one of few companies in the field with a wholly owned and fully operational facility, delivering a real volume of its Solein product at accessible commercial prices. This additional government support, alongside private capital backing, shows the continued belief in the management team, in their execution of the business strategy and achieve their key objectives on time."

He continued: "This additional funding will support the progress of the next stage of its growth strategy, investing in developing and expanding its production capability and commercialisation of products in key markets where regulatory approval is imminent."

As global demand for sustainable protein sources continues to rise, Solar Foods' innovative approach offers a promising solution to alleviate the pressures of conventional agriculture.

By decoupling protein production from environmental constraints, the company aims to contribute to food security and sustainability, addressing critical issues related to human health, animal welfare and environmental degradation.