Finnish startup lands €12m grant to grow mycoprotein from forestry by-products after Skretting deal

Editorial Staff

Skretting has been conducting trials with Pekilo mycoprotein since 2021.

Enifer, a Finnish biotechnology startup, has secured a grant of more than €12 million from Business Finland, supported by the European Union’s NextGenerationEU recovery instrument.

This funding will enable Enifer to build its first commercial-scale factory to produce Pekilo  mycoprotein, a sustainable protein ingredient.

Scheduled for completion by the end of 2025, with production starting in 2026, the new facility in the Uusimaa region aims to produce around 3 million kilograms of mycoprotein annually.

This volume equates to the protein yield of 30,000 cows but with a carbon footprint at least 20 times lower, the company claims.

The project is aligned with the EU’s circular economy action plan and Finland’s Sustainable Growth Programme, focusing on recycling and reusing industrial by-products and waste streams.

Pekilo mycoprotein, developed through fungal fermentation, is based on a technology first created by Finnish forest industry engineers in the 1970s.

Enifer has advanced this original process, creating a food-grade ingredient that is rich in protein and fiber, with a neutral taste and color, making it suitable for various food industry applications. The company plans to seek regulatory approval for this ingredient in the first half of 2024.

The construction of this €30 million facility is a significant step for Enifer, following its €11 million Series A funding in spring 2023.

The startup already collaborates with major global companies in the feed and food industries, including Skretting, Purina, and Valio.

As part of Nutreco’s ambitious Sustainability RoadMap launched earlier this year, Skretting has committed to an inclusion of 5-10% ingredients from alternative novel sources by 2025.

Simo Ellilä, CEO and Co-founder of Enifer, expressed satisfaction with the development: “This plant will be a critical stepping stone to scaling the production of Pekilo as a truly universal protein source.”


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