Enifer: secures 12 million Euro grant to build first factory

Espoo / FI. (ef) Business Finland has conditionally approved a recycling and reuse investment grant of more than EUR 12 million for biotech startup Enifer Oyi to build its first commercial-scale «Pekilo» mycoprotein ingredient factory. The funding comes from the European Union NextGenerationEU recovery instrument. It will support building first-of-its-kind industrial facilities promoting the reuse and recycling of industrial by-products and waste streams, hence aligning with the EU’s circular economy action plan and the Sustainable Growth Programme for Finland.

The commercial-scale factory will produce Enifer’s unique «Pekilo» mycoprotein ingredients, which are made using fungal fermentation. The «Pekilo» fermentation process has a long legacy – it was originally developed by Finnish forest industry engineers in the 1970s. As the world’s first commercial mycoprotein production process from 1975 to 1991, it converted forest industry by-products into sustainable feed protein for the domestic market.

(Photo: Enifer Oyi – Enifer secures 12 million Euro grant to build a first-of-its-kind mycoprotein ingredient factory)

Enifer has taken the original process many steps further and developed a food-grade ingredient based on the original «Pekilo» technology. The product is a protein- and fiber-rich powder with a neutral taste and color that can be used in a similar way to plant-based proteins in the food industry today. The company is expecting to file for regulatory approval of its food-grade ingredient during the first half of 2024.

The new facility will have a production capacity of 3 million kilograms a year of sustainable, locally sourced protein – roughly equivalent to the protein content of meat from 30,000 cows but with at least 20 times lower carbon emissions and considerably lower water and land use. The factory is currently projected to cost EUR 30 million to build and is expected to be completed by the end of 2025, with production ramp-up occurring in 2026. Enifer is currently undertaking basic engineering of the facility together with design and engineering company AFRY. The facility will be built in the Uusimaa region, with an announcement on the location expected during Q1/2024.

(Photo: Enifer Oyi – Enifer secures 12 million Euro grant to build a first-of-its-kind mycoprotein ingredient factory)

«A key objective for the original developers of «Pekilo» was to take this amazing source of protein to food applications. It is an absolute privilege for Enifer to be able to finally complete that mission, more than 50 years on,» says Simo Ellilä, CEO and Co-founder of Enifer.

«This plant will be a critical stepping stone to scaling the production of «Pekilo» as a truly universal protein source – which we aim to commercialize globally across different applications. Thanks to the unique history of «Pekilo», we are able to take this giant leap from our existing pilot directly to a commercial-scale facility. We are extremely grateful for the financial support approved by Business Finland and the European Union NextGenerationEU programme, which will enable us to take this huge step in the coming year,» says Joosu Kuivanen, COO and Co-founder of Enifer.

Enifer raised EUR 11 million series A funding in spring 2023, and the company already has ongoing partnerships with big global companies in the feed and food industries, such as Skretting, the global aquafeed division of Nutreco, Purina for pet food, and Valio for consumer food products.