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Finnish company Solar Foods has secured €77.8 million in funding from Business Finland to advance the construction and commissioning of Factory 02, its future commercial Solein production plant in Lappeenranta, Finland. The financial package combines a solvency grant of €39.6 million and an R loan of €38.1 million within the European IPCEI (Important Projects of Common European Interest) framework.
This decision represents one of the most significant financial supports received by the company since it began developing technology capable of producing proteins using carbon dioxide, air, and electricity, without relying on conventional agriculture.
The Funding Will Enable Progress Towards the Industrial Phase
The funds will be allocated to the implementation phase of Factory 02, including construction activities, acquisition and installation of critical equipment, contractual management, process commissioning, and progressive increase of production capacity before the start of large-scale production.
However, the funding is conditional on Solar Foods making the final investment decision for the plant and completing the total financing scheme planned for the project.
According to Rami Jokela, CEO of Solar Foods, the approval constitutes a significant step forward within the financial plan presented by the company in 2025 and reinforces the growth strategy designed to expand Solein’s production capacity.
Solein Seeks to Consolidate as a New Protein Source
Solar Foods’ flagship product is Solein, a protein obtained through a biotechnological process that utilizes a natural microorganism fed with air and electricity.
The company states that this method allows proteins to be produced independently of climatic conditions and intensive agricultural land use. In addition to providing protein, Solein contains iron, fiber, and B vitamins, characteristics that expand its application possibilities in various foods.
Factory 02 will aim to significantly increase the production of this ingredient to meet future commercial needs and accelerate its adoption in international markets.
Business Finland Highlights the Project’s Industrial Potential
The funding is part of Business Finland’s strategy to support high-impact technological initiatives and strengthen the country’s industrial competitiveness.
Lassi Noponen, the entity’s CEO, emphasized that the combination of national instruments and European mechanisms aimed at clean transition allows for sharing part of the risk associated with innovative projects capable of generating new industries and economic growth opportunities.
The initiative is also integrated into the European Hy2Use program, focused on research, innovation, and early industrial deployments linked to the hydrogen value chain.
Final Investment Decision Remains Under Preparation
Solar Foods expects to make the final investment decision for Factory 02 during 2026. Meanwhile, the company continues to work on several strategic fronts.
These include signing binding commercial agreements with clients, expanding its network of industrial partners, advancing the definitive design of the plant, and obtaining regulatory authorizations for the commercialization of Solein in new markets.
The company also seeks to receive novel food approval in the European Union and a no-objection letter from the U.S. Food and Drug Administration (FDA), steps considered essential to support the product’s future international expansion.
A Boost for the Hydrogen Economy and Sustainable Food Production
The construction of Factory 02 reinforces Solar Foods’ position within the European innovation ecosystem related to hydrogen and sustainable food production.
If the plant proceeds as planned, the facility will enable the scaling of a technology that combines biotechnology, renewable electricity, and carbon capture to produce alternative proteins with less reliance on traditional agricultural resources.
Likewise, the project aligns with Finland’s and the European Union’s climate objectives aimed at promoting industrial solutions that contribute to carbon neutrality and the development of new sustainable value chains.
Source and photo: Solar Foods
