Business Finland Grants 78 Million Euros to Food Tech Firm Solar Foods

Finnish food technology company Solar Foods has secured a substantial 78 million euro funding package from Business Finland, the state-funded innovation funding agency. This significant investment comprises approximately 40 million euros in grants, with contributions from both the Finnish government and the EU's post-pandemic recovery fund. The remaining 38 million euros is provided as a development loan at a highly favorable interest rate of 1% annually.

These funds are crucial for Solar Foods, a company with 56 employees at the end of last year and currently limited sales. The company has developed a unique technology to produce a protein-rich bacterial mass, dubbed solein, from air and electricity. Solein is designed to serve as a substitute for animal or plant-based proteins in the food industry.

With this funding, Solar Foods plans to construct its first industrial-scale factory in Lappeenranta. Business Finland will make the final funding decision upon the commencement of factory construction, which is anticipated within the current year. However, construction is contingent on Solar Foods securing necessary food permits, establishing a partner network, and finalizing binding customer agreements, although preliminary agreements for the factory's full volume have already been reached.

This funding package is particularly noteworthy for Business Finland, as it represents the agency's largest single financial commitment to date. Business Finland has recently allocated significant funds to other innovative companies, including a 60 million euro investment subsidy to hydrogen company P2X and 28 million euros to satellite company Iceye. Nokia also received 40 million euros for 6G technology and defense sector projects. The Finnish government has increased funding to Business Finland in recent years, enabling these larger grants, as the agency's strategy now emphasizes facilitating private investment in ambitious projects.