Solar Foods, the Finnish biotechnology company that produces protein from air and electricity, has secured a €77.8 million funding package to expand commercial production. The firm's flagship product, Solein, is a protein-rich powder created through a fermentation process using microbes that feed on carbon dioxide and hydrogen.
The package includes both equity and debt components, though the exact split was not disclosed. The round was led by existing investors, with participation from new backers. This brings Solar Foods' total funding to over €200 million as it prepares to ramp up output at its first large-scale facility in Finland.
The global alternative protein market is projected to reach $290 billion by 2035, and Solar Foods faces competition from companies like Perfect Day and Air Protein. However, Solein's unique production method, which requires no agricultural land or water, positions it as a potentially key player in sustainable food. The company's Factory 01 in Vantaa is set to produce up to 1,000 tons of protein annually once fully operational.
Critics, however, argue that the energy-intensive process of electrolyzing water to produce hydrogen for fermentation raises questions about scalability and carbon footprint, especially in regions without abundant renewable energy. The company claims its process is carbon-negative when powered by renewables, but independent lifecycle assessments remain limited.
Solar Foods CEO Pasi Vainikka said the funding will help the company achieve "price parity with conventional proteins" within the next two years, as it targets both direct-to-consumer and industrial ingredient markets. The company has already secured regulatory approval in Singapore and is pursuing approvals in the EU and US.