May 29, 2024

Image credit: Enifer

By Lynda Kiernan-Stone, Global AgInvesting Media

Finland-based mycoprotein company Enifer announced the completion of a €36 million (US$38.9 million) funding package comprising:

~  €15 million (US$16.2 million) in Series B funding led by the Finnish private equity fund Taaleri Bioindustry Fund I and follow-on investments from Nordic Foodtech VC, Voima Ventures, and Valio.

~ A €7 million (US$7.6 million) capital loan extended by the Finnish Climate Fund to support the company.

~  A €2 million (US$2.16 million) Climate and Environmental Loan provided by Finnvera. 

~ And €12 million (US$13 million) in previously announced recycling and recuse investment grant funding from Business Finland.

Taken together, this funding will now allow Enifer to begin construction on a novel, food-grade mycoprotein factory in Kirkkonummi, Finland, expected to cost €33 million (US$35.6 million). The facility, which will be the world’s first commercial plant to produce a mycoprotein from sidestream raw materials, will have a capacity to produce up to 3,000 tons annually of Enifer’s sustainable, fungi-based protein PEKILO®, or enough to cover the protein needs of 40,000 people for a year. 

The dietary needs of a global population numbering in the billions (and growing every day) need to be met – and met in ways that are sustainable, mitigate climate change, and are environmentally friendly. Requiring minimal land and water, Enifer’s PEKILO® has a low carbon footprint making it an attractive alternative to both plant and animal proteins. 

The environmental impacts of animal agriculture, and how to mitigate the effects, are complex. About 15 percent of all greenhouse gas emissions are caused by livestock and their production, however, this is just the beginning. There’s also the loss of biodiversity, water usage and pollution, soil degradation, and monoculture agriculture to produce enough feed, among others.

Meanwhile, interest in plant-based foods has created a demand that has increased in recent years, according to figures by BCG, which forecasts that the alternative protein market will reach a value of $290 billion by 2035, with a minimum of 10 percent of the meat, eggs, dairy, and seafood consumed globally coming from alternative sources. 

Current global consumption of meat protein totals approximately 500 million tons annually. Forecasts now state that global protein consumption is expected to climb at a compounded annual growth rate (CAGR) of 1.7 percent, reaching 943 million tons by 2054, according to Lux Research. Of this, less than 1 percent is currently derived from non-animal sources, however, experts, including the UN FAO, predict that demand for non-animal-based protein has the potential to account for between 10 and 20 percent of growing demand, which would translate to the need for as much as 200 million tons of plant protein per year. 

“We are very happy to start cooperation with Enifer,” said Tero Saarno, managing director, Taaleri Bioindustry. “We believe that there is an increased need for alternative proteins as the global population grows. Demand is also supported globally by environmental and ethical considerations. Taaleri Bioindustry Fund I’s investment enables commercial scale production. We are confident in Enifer’s opportunities to expand.”

Toni Mikkonen, acting CEO of the Finnish Climate Fund, added, “The world’s population and the need for protein are growing. Food production is – even at the level of technologies that can already be scaled – an unsolved key part of the climate challenge. In the future, sustainable food production will be based on several different solutions and the demand for new types of proteins is predicted to grow significantly over the next decade. Enifer’s already tested technology is interesting as the nutrients of various side streams can be upcycled and their processing value increased instead of energy use.”

Enifer’s PEKILO® mycoprotein is produced by cultivating a specific species of fungus in a fermentation process not unlike that for brewing beer or soy sauce. The company explained that its PEKILO®fermentation process was originally developed in Finland in the 1970s and used to upcycle forest industry side streams into feed-grade mycoprotein. Enifer has reinvigorated the original process, adapting it to new raw material streams from the food and ag industries, developing a food-grade version of the mycoprotein ingredient.  The finished product is neutral in color and taste, and has high levels of protein and fiber, making it ideal for diverse food applications including meat and dairy alternatives, baking, pastries, and snack foods. 

Enifer’s factory will be built as a brownfield project within an existing industrial building in Kantvik, Kirkkonummi, Finland, bordering on the Baltic Sea and a 30-minute drive from Helsinki and the company’s existing R&D facilities. 

At its core, the factory, which will ramp up operations in 2026, will house a full-size industrial fermenter standing more than 12 meters tall and 4.5 meters in diameter, producing 500 kilograms of mycoprotein per hour once it’s at full capacity. 

“At Enifer, we’re extremely excited to announce the kick off of our first factory investment project,” said Simo Ellilä, CEO and co-founder, Enifer. “For over half a century, Kantvik has been at the heart of Finnish bioindustries, and I could not think of a better location to bring PEKILO® fermentation back to life.”

“I would like to thank our new investors, in particular Taaleri Bioindustry and the Finnish Climate Fund, for joining us in our mission. Mycoprotein is the missing ingredient for a more sustainable food chain – the facility in Kantvik serves as a key steppingstone on our path to making mycoprotein a cornerstone of protein supply, with several future factories already being planned.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and Agtech Intel News. She can be reached at lkiernan-stone@globalaginvesting.com.

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