European Investment Bank backs Formo with €35 million loan to scale up animal-free cheese production

The European Investment Bank (EIB) has announced a €35 million loan to Formo, a Berlin-based company specializing in producing animal-free dairy products through precision fermentation. The funding is expected to support the company’s efforts to scale up production and bring its cheese alternatives to a broader market.

Formo, founded in 2019, uses precision fermentation to produce proteins that mimic those found in traditional dairy products, enabling the creation of cheese without involving animals. This approach not only offers a sustainable alternative to conventional dairy but also aims to address ethical and environmental concerns associated with livestock farming.

The funding from the EIB is part of its broader mission to support projects that align with the European Green Deal and contribute to sustainable development. The loan will help Formo expand its production infrastructure, optimize processes, and accelerate its go-to-market strategy. According to the company, these steps are critical to achieving cost parity with traditional dairy and making its products more accessible to consumers.

Dr Raffael Wohlgensinger, CEO & Co-Founder of Formo, expressed the company’s vision. “We are thrilled to partner with the EIB to scale our technology and bring a new generation of dairy products to market. This support demonstrates confidence in our mission to transform the food system into one that is sustainable and fair.”

The EIB’s support comes at a time when demand for alternatives to animal-based products continues to grow, driven by consumer interest in sustainability, health, and ethical concerns. Despite a slowdown in some areas of the plant-based market, precision fermentation has gained traction as a promising avenue for creating alternatives with taste and functionality closer to traditional products.

The funding aligns with the EIB’s focus on investing in innovation and sustainability. In its statement, the bank emphasized its commitment to supporting projects that contribute to reducing greenhouse gas emissions and promoting resource efficiency. By investing in Formo, the EIB underscores the potential of precision fermentation to address challenges in the dairy industry while reducing its environmental footprint.

As part of its growth plans, Formo aims to refine its production methods to achieve scalability and cost-effectiveness. The company also plans to enhance collaborations with food manufacturers and retailers, further integrating animal-free dairy products into mainstream markets. Formo’s approach combines advances in biotechnology with food science, enabling it to replicate the taste, texture, and nutritional profile of traditional cheese without the need for cows.

The loan also highlights the role of public funding in advancing technologies that may otherwise struggle to scale due to high initial costs and technical challenges. Precision fermentation, while promising, remains a capital-intensive field, and support from institutions like the EIB can play a pivotal role in bridging the gap between innovation and commercialization.

Looking ahead, Formo will face the task of meeting regulatory requirements and scaling its production facilities to meet market demand. The company has already achieved key milestones in developing its products, and the EIB’s backing could accelerate its trajectory toward commercial success.

The loan is structured to align with Formo’s long-term goals, allowing the company to allocate resources strategically while advancing its mission. “This funding is not just about scaling production,” added Wohlgensinger. “It’s about creating a resilient and sustainable food system that benefits people and the planet.”

The EIB’s investment in Formo represents a step forward for the precision fermentation sector, signaling growing confidence in its potential to address some of the most pressing challenges in food production today. By supporting companies like Formo, the bank aims to drive innovation in food technology while contributing to Europe’s sustainability objectives.

This funding marks a significant development for Formo as it works to bring its products to scale and compete in a market that increasingly values sustainability and innovation. While challenges remain, the support from the EIB provides a foundation for the company to advance its vision of transforming the dairy industry.