February 22, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

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, single-cell 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 under any conditions including in deserts, the Arctic, or even in space.

Through its latest announcement, Solar Foods shared that it has secured an investment of €10 million (US$11.3 million) from Finland’s Pharmacy Pension Fund (Apteekkien eläkekassa) in support of Factory 01 – a facility being built that will house the first commercial Solein® production line, Solar Foods’ new headquarters, and a future food Experience Hub where visitors can learn how Solein® is made and can sample it in a variety of foods. 

“It’s amazing what we have achieved together,” said Pasi Vainikka, CEO and co-founder, Solar Foods. “The investment in the property effectively releases a corresponding amount of equity for us to develop our core technology, so it’s a direct injection in our runway.”

Vainikka continued, “I’m proud that we are able to demonstrate a unique set-up supporting the progress of a deep-tech start-up while creating a sustainable investment case. The Pharmacy Pension Fund has the longest heritage of all pension funds in Finland, which makes us all the more excited to be working together towards 2030 and our long-term plans for the future of food.”

The company stated that the introduction of industrial scale climate-friendly protein production will be nothing short of revolutionary. Not only is it more sustainable with Solien’s comparative greenhouse gas emission totaling only 1 percent of those generated by meat protein, and 20 percent of those generated by plant-based protein production, but this entirely new way of producing protein has the power to change land use, mitigate soil degradation, increase biodiversity, and improve the condition of water systems.

Total investment capital in Factory 01 currently exceeds €35 million (US$39.7 million) launching it on its commercialization journey. In December 2020 when the company announced it had secured US$5.1 million from Business Finland, engineering of Factory 01 was already underway and preliminary permits were being organized. 

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

Another benchmark was set in April 2021 when the Finnish Climate Fund selected Solar Foods to be its first investment with a commitment of €10 million in the novel startup. 

“The mission of the Climate Fund is to boost significant climate solutions into an industrial scale in order to participate in supporting the carbon neutrality targets of the EU and Finland,” said Paula Laine, CEO, The Finnish Climate Fund, last year. “By taking part in the investment, we’ll enable Solar Foods’ factory sooner and thus opening a faster path to emissions reductions.”

The facility site is 20 minutes from Helsinki center and near Helsinki-Vantaa airport, for greatest access to international visitors wanting to explore the technological advances allowing food to be produced within cities, and even benefitting from urban infrastructure.

“This project combines two real estate cornerstones: excellent location and a tenant with a clear vision of the future,” said Antti Jäntti, head of real estate investments, Pharmacy Pension Fund. “For us, this presents a great opportunity to be Solar Foods’ real estate partner on their path to be a globally leading food tech company.”

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Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com.