Solar Foods secures €77.8 million funding package for Solein Factory 02 expansion in Finland

Solar Foods has secured €77.8 million (US$90.4 million) in grant and loan financing from Business Finland to support the construction and commissioning of its planned Factory 02 production facility in Lappeenranta, Finland, marking a significant step forward in the company’s efforts to scale production of its air-based protein ingredient, Solein.

• Business Finland granted Solar Foods €77.8 million (US$90.4 million) in combined grant and loan financing linked to the company’s approved IPCEI project.
• The funding was allocated toward the construction, commissioning and production ramp-up of the planned Factory 02 facility in Lappeenranta, Finland.
• Solar Foods continued preparations for a final investment decision, focusing on financing, customer agreements, regulatory approvals and facility design.

The funding package, announced on June 17, consisted of a grant worth €39.6 million (US$45.9 million) and an R&D loan totaling €38.1 million (US$44.2 million). Both awards were linked to Solar Foods’ participation in the European Union’s Important Projects of Common European Interest (IPCEI) program, which supports strategically important industrial projects across Europe.

The funding is intended to support the implementation phase of Factory 02, including construction activities, contract management, equipment delivery, installation, commissioning and the production ramp-up ahead of commercial-scale operations.

The decision formed part of the financing plan Solar Foods outlined in October 2025. At the time, the company stated that the Factory 02 project would be financed through a combination of equity, debt and grant funding.

“We are pleased with Business Finland’s funding decision. Solar Foods has executed its financing plan, communicated in October last year, with determination, and this funding decision is a significant part of the total financing in line with the company’s strategy,” said Rami Jokela, CEO of Solar Foods.

The funding remains conditional on Solar Foods making a final investment decision for Factory 02 and securing the remainder of the project’s financing.

Factory 02 is planned for Selkäharju in Lappeenranta and is expected to serve as the company’s next major production facility for Solein, the protein ingredient produced using carbon dioxide, hydrogen and renewable electricity through a fermentation-based process.

Business Finland said the project aligned with its objective of supporting ambitious industrial innovation projects with the potential to create new industries and economic growth.

“Supporting bold breakthroughs such as Solar Foods is part of Business Finland’s strategy. Our role is to raise the level of ambition in Finnish R&D by sharing risk with companies pursuing transformative innovations. We were able to structure a significant financing package by combining Business Finland funding with EU clean transition instruments. Projects like this carry risks, but they are exactly the kind of high-ambition, high-expertise investments Finland needs to create entirely new industries and future growth," said Lassi Noponen, Director General of Business Finland.

The grant component covers up to 48% of eligible project costs incurred between 2027 and 2031. According to the funding terms, the grant will support Factory 02 implementation and ramp-up activities conducted alongside strategic partners, as well as Solein’s large-scale commercialization and the development of scalable business models and expertise generated through the project.

Payments will be made against approved cost statements submitted by Solar Foods during the project period, with final approval of project costs taking place after submission of the final report.

The R&D loan carries a 10-year term, including a five-year grace period. The loan has an interest rate of 1% and does not require collateral. The State Treasury will administer the loan following the funding decision and is expected to release an initial payment equivalent to approximately 30% of the loan value once the loan agreement has been finalized and required documentation submitted.

Solar Foods reported that the loan would be used to further scale and optimize Solein production at Factory 02, with a focus on improving productivity, energy efficiency and product characteristics. The state aid component associated with the loan was estimated at approximately €6 million (US$7.0 million).

The company said it continued to target a final investment decision on Factory 02 during 2026. Preparatory work remained focused on securing sufficient binding customer agreements, expanding the company’s partner network, advancing facility design, implementing the broader financing plan, obtaining European novel food approval and securing a No Questions Letter from the US Food and Drug Administration.

Solar Foods’ participation in the hydrogen-focused Hy2Use IPCEI initiative dates back to September 2022, when the European Commission approved the project as part of a wider effort to strengthen Europe’s hydrogen value chain through research, innovation and first industrial deployment.

In Finland, hydrogen economy projects supported through the initiative form part of the country’s Sustainable Growth Programme under the EU’s Recovery and Resilience Facility, contributing to Finland’s goal of achieving carbon neutrality by 2035.

The latest award builds on earlier Business Finland funding decisions granted to Solar Foods in December 2022 and February 2025. Those earlier allocations primarily supported construction and production activities at Factory 01, along with preliminary work for Factory 02, including permitting, engineering studies, site assessments and intellectual property development.

Solar Foods reported that approximately €21 million (US$24.4 million) remained available under its approved IPCEI notification, although the company had not yet received a funding decision covering those funds. The company stated that it intended to seek approval for the remaining allocation as development of Factory 02 progressed.