Happy Plant Protein secures €1.8 million to revolutionize local plant protein production

Happy Plant Protein, a Finnish food technology startup and spinout from VTT Technical Research Centre of Finland, has raised €1.8 million in pre-seed funding to bring its patented protein production technology to a global scale. The funding round, led by Nordic Foodtech VC and Butterfly Ventures with additional support from Business Finland, will enable the company to develop and license its innovative process, which is poised to transform the production of plant-based proteins.

At the heart of Happy Plant Protein's approach is a cost-effective, sustainable method that utilizes existing extrusion technology to produce high-quality plant protein ingredients with a 70–80% protein content. Unlike traditional methods for producing protein isolates—which are resource-intensive, expensive, and environmentally taxing—Happy Plant Protein’s process significantly reduces energy consumption and operational costs. The technology eliminates the need for chemical treatments, minimizes water use, and generates no waste, offering a sustainable and scalable alternative.

“Ensuring food security while advancing sustainability in food manufacturing requires new, efficient methods for producing protein ingredients,” said Jari Karlsson, CEO & Co-founder of Happy Plant Protein. “Our approach uses standard extrusion technology to extract high-quality protein from crops like peas, lentils, and cereals. These ingredients can then be used in a wide range of plant-based food products.”

Traditional protein isolate production lines require substantial investments, with facility costs often exceeding €100 million, and consume vast amounts of energy and water. For example, producing just one kilogram of protein isolate typically requires 14MJ of energy. Happy Plant Protein’s method reduces this to one-seventh of the energy usage, while cutting capital and operational expenditures by up to 90%. By leveraging the more than 5,000 extrusion lines already in operation worldwide, the technology enables local food manufacturers to adopt this process without significant new infrastructure investments.

“This innovation empowers local mills and food processors to independently produce high-quality plant proteins from local crops, bypassing traditional global supply chains,” added Karlsson. “This not only reduces the carbon footprint of food production and transportation but also increases the economic value of crops like peas and fava beans.”

In addition to cost savings and environmental benefits, the technology addresses consumer demand for better plant-based products. According to Nordic Foodtech VC’s Mika Kukkurainen, many first-generation plant-based foods have failed to meet consumer expectations due to high prices, off-flavors, and compromised nutritional profiles. Happy Plant Protein’s method avoids these pitfalls by maintaining the natural fibers and nutrients of the raw materials, delivering healthier and more affordable options.

“By licensing our technology globally, we aim to make natural, locally produced, and high-quality plant-based foods accessible to consumers everywhere,” Karlsson emphasized.

The funding also highlights the importance of Finland’s research ecosystem in fostering innovation. Tiina Nakari-Setälä, Vice President at VTT, remarked, “Happy Plant Protein is the latest in a series of VTT spin-offs contributing to a more sustainable and resilient food system. This success underscores the value of long-term research investments in plant protein ingredients and deep-tech startups.”

Happy Plant Protein plans to license its technology to food manufacturers worldwide, enabling the rapid development of plant-based products without reliance on large-scale processing plants or extensive regulatory delays. With this technology, the company supports the creation of sustainable food systems, empowers local food production, and meets the growing global demand for plant-based nutrition. By offering a solution that benefits farmers, food producers, and consumers alike, Happy Plant Protein is positioning itself as a key player in the transition to sustainable food systems.

(Photos courtesy of Timo Kauppila)