Solar Foods signs LOI to supply up to 1,650 tons of Solein protein annually for health and performance market

Solar Foods has signed a Letter of Intent (LOI) with a leading international brand in health and performance nutrition, aiming to commercialize between 500 and 1,650 tons of Solein annually from 2026 through 2030. The agreement, while non-binding for now, marks a significant step toward integrating Solar Foods’ novel protein into the broader health and performance product market.

The LOI sets out initial plans for collaboration on product development and defines the basic principles for moving toward binding agreements. If finalized, the higher end of the annual volume commitment would account for about 13% of the total planned capacity of Solar Foods’ future Factory 02, which is currently in its pre-engineering stage.

“These agreements strongly validate Solein’s commercial potential, and should the collaborations lead to binding agreements, they would correspond already to a major share of the production capacity of Factory 02,” commented Rami Jokela, CEO of Solar Foods. “Customers’ interest towards Solein also plays an important role in preparing for the final investment decision for Factory 02.”

Solein, Solar Foods’ flagship product, is a protein-rich ingredient produced through a proprietary fermentation process using carbon dioxide, hydrogen, and nutrients instead of traditional agriculture. The company positions it as a sustainable, versatile protein source suitable for a wide range of applications, with particular promise in health and performance nutrition.

Factory 02, Solar Foods’ planned large-scale production facility, is designed to be constructed in three phases to balance investment costs and improve unit economics. Once fully operational in 2030, it is expected to reach a production capacity of 12,800 tonnes annually – nearly one hundred times the size of Factory 01, which is already producing Solein on a smaller scale. The company anticipates completing the first phase of Factory 02 in 2028, with additional capacity coming online in 2029 and 2030. A final investment decision for the facility is planned for 2026.

Earlier this year, Solar Foods signed two Memorandums of Understanding (MOUs) with other customers, targeting commercialization of a combined 6,000 tonnes of Solein annually. If those MOUs and the new LOI all progress to binding agreements, they would collectively account for roughly 50-60% of Factory 02’s full production capacity.

The health and performance nutrition market represents a significant opportunity for Solar Foods, as brands seek novel, sustainable protein sources that align with shifting consumer preferences and environmental goals. Under the LOI, the companies intend to explore how Solein can be integrated into products such as ready-to-mix protein powders and protein bars.

“Our goal is to develop products that meet consumer demands for nutrition, taste, and functionality – while delivering a distinct advantage in sustainability and future supply security,” Jokela said.

Solar Foods sees the growing interest from potential partners as a critical element in its planning for Factory 02, which would mark the company’s transition into large-scale commercial production. Commitments from customers provide essential signals to investors and stakeholders as Solar Foods approaches its major capital investment decisions.

Solein has attracted attention as a high-potential, next-generation protein alternative. Its production method significantly reduces land and water use compared to conventional agriculture and offers a solution resilient to climate impacts and supply chain disruptions. The protein can be formulated into various food applications, contributing texture, nutrition, and functionality without relying on animal or traditional plant sources.

With increasing market interest, Solar Foods aims to position itself as a leading player in the alternative protein industry, focusing on both environmental sustainability and the functional performance of its ingredients. The progress with LOIs and MOUs reflects growing confidence that Solein could become a key component in future food systems.

As discussions continue and development efforts advance, the company remains focused on achieving binding supply agreements that would secure long-term production volumes for Factory 02.