EU backs fermentation and biotech with US$380 million push in new life sciences strategy

The European Union is stepping up its ambition to become the world’s top destination for life sciences innovation, pledging major support for fermentation technologies and broader biotechnology in a new strategy that could reshape industries from food to medicine.

Launched this month, the 'Choose Europe for Life Sciences' strategy lays out a blueprint to secure the EU’s place as a global leader in life sciences by 2030. Among its flagship measures is a plan to channel about €350 million (US$380 million) into advancing biotechnology and biomanufacturing, with a strong focus on fermentation-based solutions.

The Commission says this funding, spread across various initiatives under the Horizon Europe research program and other EU instruments, aims to accelerate the development and market adoption of advanced fermentation technologies. These include precision and biomass fermentation, which can produce sustainable ingredients, biopolymers, and other high-value products from renewable resources with a lower environmental footprint.

The EU sees fermentation as a vital tool in reducing dependence on limited sustainable biomass and cutting greenhouse gas emissions. It also wants to help companies turn waste streams into valuable products. “Advanced fermentation technologies… offer significant potential, as they can produce a wide spectrum of high-end products from renewable raw materials with low environmental impact,” the strategy states.

Startups and small and medium-sized enterprises are at the forefront of this sector, but the Commission acknowledges that scaling up remains one of their biggest hurdles. The new strategy promises to help overcome this bottleneck by promoting innovation through public-private partnerships and supporting the scale-up of fermentation technologies. An annual conference on advanced fermentation will be launched to connect innovators, investors, and policymakers.

The funding push is part of a broader vision to tap the economic and environmental potential of biotechnology, spanning health, food, materials, and industrial processes. Europe’s life sciences sectors already contribute around €1.5 trillion (US$1.63 trillion) in value added annually, employing about 29 million people, according to Commission figures.

Yet the Commission warns that the EU risks falling behind global rivals unless it acts swiftly. Despite Europe’s strong record in fundamental research, it has struggled to translate scientific breakthroughs into commercial products at the same speed as regions like the United States and China. “The EU faces fierce competition at global level… with a growing innovation gap and an alarming failure to translate innovation into products or services,” the strategy notes.

In response, the Commission plans to propose a new European Biotech Act, aimed at streamlining regulations to make it easier for biotech innovations to reach the market. The Act will seek to simplify rules for new biotech applications, including those in health and food, without compromising safety or scientific rigor. The Commission also aims to establish regulatory sandboxes, allowing innovators to test new technologies under controlled conditions.

Funding instruments will play a central role in bridging the so-called 'valley of death' between research and commercial scale. In addition to Horizon Europe, the strategy points to resources such as the European Innovation Council, the InvestEU program, and the newly announced Scaleup Europe Fund, which will target promising startups in strategic sectors, including life sciences and biotech.

Public procurement is another lever the Commission intends to pull, with plans to stimulate demand for innovative life sciences solutions through dedicated funding calls. Sectors like healthcare and sustainable food production are seen as ripe for transformation if public authorities prioritize innovation in their purchasing decisions.

Beyond financial support, the Commission emphasizes the importance of building public trust in emerging life sciences technologies. It plans to invest in science communication and public engagement efforts to counter misinformation and help citizens understand how biotechnology and advanced fermentation can deliver tangible benefits.

In the realm of sustainable industry, fermentation’s potential is not limited to food ingredients. The Commission highlights applications such as biopesticides, sustainable biopolymers like spider silk, cosmetics, and biosurfactants. The Circular Biocarbon project, for example, is already working with local authorities to transform municipal waste into bio-polymers for various uses, offering a model that could be replicated across thousands of facilities in Europe.

While the EU’s ambitions are high, the Commission acknowledges significant barriers still stand in the way. Fragmented regulation, complex approval pathways, and the lack of large-scale fermentation infrastructure in Europe have slowed the rollout of biotech innovations. The new strategy aims to address these hurdles through coordinated policies and investment.

As the world races to develop more sustainable and resilient industries, the EU is determined not to be left behind. With billions already flowing into life sciences and fresh momentum for fermentation and biotechnology, Europe is staking its claim as the place where biology and technology converge to shape the industries of the future.