Solar Foods secures additional €10 million for Solein protein development

Solar Foods has been granted an additional €10 million (US$10.8 million) in funding from Business Finland, further supporting the research, development, and go-to-market efforts for Solein protein. The funding is linked to the company’s IPCEI (Important Projects of Common European Interest) notification, which was approved by the European Commission as part of Europe’s efforts to foster innovation in low-carbon hydrogen technologies.

This grant increases the first tranche of IPCEI funding to €43.6 million (US$47 million) and extends the project timeline by one year to 31 December 2026. The additional funding reflects updated cost estimates for Solar Foods’ ongoing projects and will support the ramp-up of Factory 01, research and development efforts to optimize Solein’s production process, regulatory approvals needed for market entry in various regions, and the pre-engineering phase of Factory 02, which began in February 2025.

This development is part of a broader financing structure under which Solar Foods could receive up to €110 million (US$118.5 million) in state aid, with payments continuing until 2035. To date, the company has received €9.7 million (US$10.4 million), with additional funding contingent on cost reports and co-financing through equity or loans.

The pre-engineering phase of Factory 02 is a critical step toward expanding Solein’s commercial production. Factory 02 is expected to scale the company’s capabilities beyond Factory 01, enabling larger volumes and more efficient production processes. This facility will not only support the industrialization of Solein but also reinforce Solar Foods’ position as a leader in carbon-fed protein production.

CEO Pasi Vainikka welcomed the funding as a significant milestone for the company’s growth. “We are extremely pleased to receive this additional funding for research, product development, and the pre-engineering phase of Factory 02. We are continuing according to plan toward the realization of Factory 02, of which we will have more news soon. When realized, Factory 02 will be a unique project in terms of science, technology, and climate impact.”

The funding also strengthens Solar Foods’ ability to continue its regulatory approval processes, which are essential for commercializing Solein in new markets. The company has already made significant progress in securing regulatory clearances, with approvals in Singapore and applications pending in the European Union, the United States, and other key markets.

Solar Foods' innovation in precision fermentation and carbon-fed microbial protein aligns with the broader goals of reducing reliance on traditional agriculture. Solein, produced using CO₂, hydrogen, and renewable energy, represents a potential breakthrough in sustainable protein production. Unlike traditional plant-based or animal-derived proteins, Solein does not require arable land, irrigation, or conventional feedstocks, making it one of the most resource-efficient proteins under development today.

The IPCEI grant program, which supports projects with strategic importance to the EU, is part of a wider push to decarbonize industrial sectors and support green hydrogen technologies. As part of its €600 million (US$648 million) investment program, Solar Foods is positioning Solein as a viable, climate-friendly alternative to conventional proteins.

Solar Foods plans to apply for additional IPCEI funding, with up to €66 million (US$71.3 million) still available under its notification. These funds are expected to partially cover the construction of Factory 02, ensuring that the company can scale Solein production efficiently and meet the growing demand for sustainable protein solutions.

Business Finland’s decision to extend additional funding aligns with its broader initiative to support low-carbon hydrogen projects, carbon capture, and utilization technologies. The funding reflects confidence in Solar Foods’ ability to advance hydrogen-based food production, a technology with significant potential for reducing food system emissions.