Solar Foods Expands Air-Based Protein Production with Strategic Partnerships

Finnish startup Solar Foods is making significant strides in sustainable food technology, announcing that it has secured memos of understanding (MOUs) and letters of intent (LOIs) for over 50% of the output from its upcoming commercial-scale facility, which will produce protein from “thin air” through gas fermentation.

Innovative Production Techniques

Solar Foods stands out as one of the few companies harnessing the power of microbes that derive their nutrients from gases instead of sugars. The company is currently scaling the output of its pilot facility, Factory 01, from 160 tons per year to 230 tons per year. Looking ahead, the first phase of its large-scale installation, Factory 02, is projected to be operational by 2028 with a capacity of 3,200 tons per year.

Strategic Partnerships and Funding

CFO Ilkka Saura stated, “We have explored various options and found leading partners in their respective fields.” The network of strategic partners will assist Solar Foods with real estate, hydrogen production, electricity grids, and other essential resources for Factory 02. The construction will unfold in three phases:

• Phase One: 3,200 tons/year requiring €134 million ($155 million), with partners contributing €95 million ($110 million).
• Phase Two: 6,400 tons/year at an estimated cost of €182 million ($211 million), with contributions from partners of €127 million ($147 million).
• Phase Three: Potential capacity increase to 12,800 tons/year.

According to the company, the selling price for the protein will align with the current market price of whey protein isolate and concentrate, making it a competitive option in the protein market.

Insights from CEO Rami Jokela

In a recent discussion with AgFunderNews at the Future Food-Tech Summit in London, CEO Rami Jokela addressed several crucial aspects about their operations:

• Why is gas fermentation potentially more cost-efficient than sugar fermentation?
• Where does Solar Foods source its carbon dioxide and hydrogen? Is on-site electrolysis cost-effective?
• What process refinements have been introduced for increased efficiency?
• Can Solar Foods achieve profitability from the first phase of Factory 02? What portion of output is backed by LOIs or offtake agreements?
• How is Solein, their protein product, positioned in comparison to whey protein? What pricing strategy is being implemented?
• Is Solein primarily viewed as a nutritional additive, or does it offer functional properties like gelling and emulsification?
• Does its bright yellow color limit market applications, or is it an attractive feature?
• What markets are Solar Foods targeting first and what interests have been expressed by potential customers?
• How critical is non-dilutive funding for the success of innovative protein companies like Solar Foods?

Further Exploration in Sustainable Protein

In light of rapid advancements in the field, several related topics warrant attention:

• Gas fermentation startup Novonutrients calls it quits, seeks buyer for assets: ‘The technology’s potential remains unchanged’
• Gas fermentation: the future of sustainable protein, or hot air?
• Arkeon files for insolvency… ‘Every failure teaches us something new’
• Unibio CEO: ‘We have the most efficient reactor design for gas fermentation’
• Can gas fermentation deliver on its green promise for food and feed?
• Aerobic gas fermentation: the final frontier in novel fats?

Watch the Discussion

For more insights into Solar Foods’ innovative approach, check out this video: