Solar Foods Oyj, press release 13 February 2025 at 15:00 EET
Solar Foods initiates Factory 02 pre-engineering with targeted operational start in 2028
Solar Foods has begun the pre-engineering of its first industrial-scale Solein® production facility, Factory 02, marking a major step towards profitable production scale. The Factory 02 will be developed through a phased investment plan, with operational deployment of the first phase aimed for 2028.
To ensure the seamless progress of the pre-engineering project, Solar Foods has entered into an Engineering & Procurement partnership agreement with Blue Projects, a global design, engineering, and project management company specializing in larger-scale construction projects. The company operates 26 offices worldwide managing projects in over 53 countries.
Blue Projects will establish a well-defined and robust foundation for the project. The pre-engineering phase will include completion of an integrated project execution plan, enabling a smooth transition into construction of Factory 02. The pre-engineering phase will utilise the learnings from Factory 01 and set a basis of design including engineering standards and specifications for future factory blueprints. Blue Projects will deliver a detailed advanced conceptual design package, cost estimate, and integrated project plans that cover permitting, engineering, procurement, and construction schedules. Blue Projects will be closely collaborating with leading OEM partners (original equipment manufacturer) to create a cohesive and integrated design that aligns seamlessly with the project's objectives.
"Entering the pre-engineering phase marks a significant milestone in our journey toward the planning, construction and operation of our increased production capabilities. We have set the ambitious goal of starting operations in 2028 and are fully on schedule. We are developing a cutting-edge facility that aligns with our strategic goals and sets the standard for future production facilities", says Benoit Formesyn, Solar Foods Project Director of Factory 02.
"Factory 02 is a forward-looking project that requires a structured and well-integrated approach from the start. Through ensuring a strong foundation, including a well-defined design and procurement strategy, Blue Projects will help set the stage for efficient project execution. We look forward to working closely with Solar Foods to bring this project to life in a way that is both technically sound and commercially viable", says Umut Demircan, Managing Partner at Blue Projects.
Three-phased construction to ensure efficient cost structure
Factory 02 is planned to be constructed in three phases, ensuring an efficient cost structure and optimised unit economics. All the phases are estimated to achieve positive cash flow. The first phase of construction will require an initial capital expenditure (CapEx) of about 134M€. The expected revenue for the first phase is estimated at 48-55M€ and an initial estimate for EBITDA margin of 57-62% annually.
The final investment decision for Factory 02 is planned to be made in 2026, with the first phase aiming to become operational in 2028 and the following phases in 2029 and 2030. Factory 02 will significantly expand Solar Foods' production capacity up to about a hundred times from Factory 01, with an annual planned capacity for Factory 02 of 12 800 tons.
Solar Foods is currently evaluating multiple locations for the Factory 02 facility, prioritising sites with access to the electricity grid. Additionally, Solar Foods is exploring cost-saving opportunities, including selecting a brownfield site and utilizing hydrogen supplied by external partners.
"Factory 01 is a globally one-of-a-kind production facility which showcases that our technology scales. It is the first step in a much larger journey: Factory 02 will significantly scale up our production capacity, allowing us to answer to the customer demand and to realise Solein's full potential", Formesyn continues.
Further Information:
Pasi Vainikka, Chief Executive Officer, pasi.vainikka@solarfoods.com, tel. +358 10 579 3286
Images for editorial use: www.solarfoods.com/media
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About Solar Foods
Solar Foods produces Solein®, a protein created using carbon dioxide and electricity. This innovative production method is independent of weather and climate conditions, eliminating the need for traditional agriculture. Founded in Finland in 2017, Solar Foods is listed on the Nasdaq First North Growth Market Finland. Learn more at www.solarfoods.com and investors.solarfoods.com.
About Blue Projects
Blue Projects is an international engineering and project management consultancy, dedicated to delivering innovative, sustainable, and efficient solutions for industrial and commercial clients. With a presence in 26 offices worldwide and projects in over 53 countries, the company provides end-to-end services from concept development to execution and commissioning. Since 2007, Blue Projects has successfully delivered projects, supporting clients across automotive, FMCG, food & beverage, heavy industry, pharma & beauty care, retail, and logistics. By combining deep technical expertise with a flexible and client-driven approach, Blue Projects ensures that every solution is tailored to meet the unique needs of each business. With a strong focus on sustainability, innovation, and operational excellence, Blue Projects continues to shape the future of industrial development. www.blueprojects.com
