Happy Plant Protein deploys dry extrusion technology in Latvia’s first agriculture-based plant protein facility

Happy Plant Protein has announced the deployment of its proprietary dry extrusion technology in a new agriculture-based plant protein production facility in Latvia, marking its first industrial-scale implementation and a step toward regionalizing protein production in Europe.

• Happy Plant Protein deployed its technology in a €6 million (US$6.5 million) greenfield plant protein facility in Latvia, supported partly by EU funding.
• The site marked the first agriculture-based plant protein production facility of its kind in Latvia and Europe, using locally grown crops.
• The facility is expected to produce around 5,000 tons annually, with production scheduled to begin in early 2027.

The Helsinki-based company confirmed that its patented technology would be used to process locally grown crops into high-value plant-based protein ingredients, with the facility set to become the first of its kind in both Latvia and Europe. The project is designed to bring protein production closer to primary agriculture, shortening supply chains while creating new revenue streams for farmers and agricultural stakeholders.

The development represented a milestone on multiple fronts. It introduced industrial-scale plant protein production to Latvia for the first time, marked the first industrial deployment of Happy Plant Protein’s technology, and demonstrated a model for decentralized, crop-based protein production that could be replicated across agricultural regions in Europe.

The greenfield investment totaled approximately €6 million (US$6.5 million), significantly lower than conventional plant protein isolate facilities, which can reach investment levels of up to €150 million (US$162 million). Construction is expected to take around one year, with production scheduled to begin in early 2027.

The facility will process crops such as faba beans, oats, and peas sourced primarily from Latvia and the Baltic region. Output will be supplied to customers across the Baltics, Europe, and the Nordic markets, supporting regional demand for plant-based protein ingredients.

Jari Karlsson, CEO & Co-founder of Happy Plant Protein, said the deployment demonstrated the scalability and practical value of the company’s approach. “This is a significant milestone for us, demonstrating that our technology works at industrial scale and creates value directly at the level of primary production. Its greatest advantage is simplicity. We produce textured vegetable protein directly from flour in a one-step process, making it both cost-efficient and sustainable. This opens up new opportunities for mills, farms, and co-operatives. The end product, TVP, is a key ingredient for food industry R&D, enabling the development of new, delicious, and healthier plant-based and hybrid food products for consumers.”

The company’s dry extrusion technology operates as a single-stage process designed to minimize energy use and eliminate the need for chemical inputs. According to the company, the system requires minimal water and energy, while avoiding the generation of side streams, differentiating it from conventional protein processing methods.

Happy Plant Protein noted that the technology was based on research and development originating from VTT Technical Research Centre of Finland. The company has been working with European partners to scale deployment of the system across different regions.

The Latvian facility is being developed in partnership with Agrofirma Lobe SIA, an agricultural company that is leading the investment and plant development. A dedicated entity will be established to manage the project locally, while Happy Plant Protein will license its technology and support process optimization to ensure consistent product quality.

Raivo Dzilna, Chairman of the Board at Agrofirma Lobe SIA, said the project was intended to shift value creation closer to the source of raw materials. “Our ambition is to make plant protein production more accessible and more local, ensuring that more value remains closer to the raw material producers. By enabling protein production directly from locally grown crops, we help agricultural producers move up the value chain – from low-margin raw materials to higher-value food ingredients. This creates new revenue opportunities for farmers while also strengthening regional protein self-sufficiency and reducing reliance on imported protein ingredients.”

The planned production capacity of the facility is approximately 5,000 tons per year, targeting a broad range of food industry applications. The system is designed to operate without chemical inputs and with reduced energy consumption, supporting a production model that aligns with growing demand for more localized and resource-efficient protein supply chains.

By integrating processing capacity directly within agricultural regions, the project reflects a shift toward decentralized production models that aim to strengthen supply chain resilience while expanding access to plant-based protein ingredients across Europe.