September 9, 2020

By Lynda Kiernan, Global AgInvesting Media

Solar Foods has raised another €15 million (US$17.66 million), to close its Series A at a total €18.5 million (US$21.8 million). 

This round, which was led by Finnish food producer Fazer Group, and included Bridford Investments Limited, Agronomics Limited, Lifeline Ventures and CPT Capital, represents the largest food tech funding round in Finland’s history to-date.

“We have been with Solar Foods from the very beginning and have been extremely impressed with how their team has consistently delivered on all expectations,” said Juha Lindfors, partner at Lifeline Ventures and chairman of Solar Foods.

“I am also very happy that this financing round has brought together an excellent group of highly experienced investors who understand the industry thoroughly.”

Founded in Helsinki in 2017 as a spin-off from a VTT and LUT research program, Solar Foods uses a unique bioprocess similar to that used to make beer or wine to create natural protein using only air and electricity as raw materials.

Using renewable energy and air-captured carbon dioxide (CO2) in a complete and continuous mode, the company makes Solein®, an entirely novel type of nutrient-rich protein that has the potential to revolutionize food production, as it’s not reliant on agriculture, requires no irrigation, pesticides, fertilizers, open land, or animals, nor is it at the whims of the weather. 

This sustainable and natural product contains all essential amino acids, is approximately 65 percent protein, carbs, and fats, has a light taste and appearance, can be easily mixed into any meal, and can be produced in any conditions including deserts, the Arctic, or even in space. (The company is collaborating with the European Space Agency to explore applications for Solein by astronauts.)

The company stated that the capital raised through this record-breaking round will enable it to pursue its mission of changing how food is produced through the construction of a new production plant that will have the ability to produce approximately one kilo of dry protein per day. So far, Solar Foods has developed 20 kinds of food products using Solein®, however, once online in late 2022, this facility will enable the commercial-scale production of new food products using the platform ingredient.

“We are extremely delighted to be able to go forward toward commercialization of Solein® protein and bringing it on consumer plates,” said Dr. Pasi Vainikka, CEO and co-founder, Solar Foods.

“Our first factory will be located in Finland and is aimed to be the world’s first commercial factory producing food out of air-captured CO2.”

“At the start-up phase, our production is estimated to be 5 million meals a year,” explained Dr Vainikka. “We want to disconnect protein production from the ever-increasing use of environmental resources. Turning this possibility into a reality is an exciting prospect.”

The basic engineering for the facility, which is being planned as an urban food production hub, has already been carried out by the company, which is beginning the permitting process. Once completed, the site will be called the demonstrator, as it will not only include the Solein® Experience Hub but will also have a future-food bar, giving visitors an unprecedented transparent view into food production.

“New technologies can open windows to the future,” said Dr. Vainikka. “Through them, we can see possibilities that were an impossibility only a handful of years ago. It is not a case of opportunism, nor a question of optimism or pessimism.”

“Producing Solein® every day is already a tangible reality. At Solar Foods, we are “possibilists” who want to encourage and empower all people to be part of the solution: creating a better world through better food choices,” continued Dr. Vainikka. 

“Our vision is to change the way food is produced, and the demonstrator’s product is aimed to be permitted as a global novel food. The world has hope. Food of the future is not a utopia – it is happening now.”

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.