Solar Foods Oyj, Inside information 26 February 2025 at 19:00 EET
Inside information: Solar Foods has been granted EUR 10 million funding related to the research, development and go-to-market for Solein protein
Business Finland has on 26 February 2025 granted funding for Solar Foods amounting to EUR 10 million, related to the company's IPCEI (Important Projects of Common European Interest) notification approved by the European Commission.
Solar Foods EUR 600 million investment programme was notified as a hydrogen IPCEI project in September 2022. The maximum state aid available for the Solar Foods project amounts to EUR 110 million, and the grants can be paid until 2035. Solar Foods IPCEI notified project covers the construction and ramp-up of Solar Foods Factory 01, the engineering, construction and ramp-up of Solar Foods Factory 02 as well as supporting projects such as research and development of Solein protein, novel food regulatory approval, and go-to-market.
Business Finland's funding decision for the first EUR 33.6 million tranche of the IPCEI grant was approved in December 2022 for the ramp-up of Solar Foods Factory 01 and for entering the pre-engineering phase of Factory 02, a prerequisite for making the final investment decision. Business Finland has now decided to increase the grant under the first funding decision by EUR 10 million based on the updated cost estimate for the project. At the same time, the project deadline has been extended by one year until 31 December 2026. The decision is part of a supplementary Recovery and Resilience Facility (RRF) funding call launched by Business Finland in November 2024 for projects that promote the development of low-carbon hydrogen production and storage as well as carbon capture and utilisation.
Business Finland pays the grants to Solar Foods against approved cost reports. The IPCEI funding can cover a maximum of 81% of the total eligible costs. Therefore, to be able to receive the IPCEI grants, equity or loan funding is also needed to cover the costs. The payments received to date amount to EUR 9.7 million.
Solar Foods will apply for further funding under its IPCEI notification. The remaining funds under the EUR 110 million IPCEI notification amount to approximately EUR 66 million and are intended to partially cover the costs for the construction of the company's Factory 02. The pre-engineering phase of Factory 02 facility started in February 2025.
"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 towards the realization of Factory 02, of which we will have more news soon. When realized, Factory 02 is a unique project in terms of science, technology and climate impact", says Pasi Vainikka, CEO of Solar Foods.
Further Information
CEO Pasi Vainikka, pasi@solarfoods.com, tel: +358 10 579 3286
Certified Advisor
Carnegie Investment Bank AB (publ)
About Solein®
Solein is an all-purpose protein grown with the air we breathe: The unique bioprocess takes a single microbe, one of the billion different ones found in nature, and grows it by fermenting it using air and electricity and thereby converting carbon dioxide to protein. Solein is a nutritionally rich and versatile ingredient which can replace protein virtually in any food. Solein can also be used as a fortifier to complement the nutritional profile of various foods: it can be a source of iron, fiber and B vitamins, and it can also bring different techno-functionalities into food products. www.solein.com.
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.
