Swedish food-tech start-up Millow has commissioned its first large-scale dry-state fermentation factory, supported by the European Innovation Council, to produce its clean label protein made from oats and mycelium.

The company, headquartered in Gothenburg, received an initial €2.5 million grant from the European Innovation Council to build the facility, part of a €17.5 million blended finance package.

The 2,500-square-metre site – formerly a Lego production hall – aims to accelerate Millow’s innovation into industrial scale production. Once fully outfitted later this year, each production line at the factory will deliver up to 500kg of protein per day. The building also houses an advanced fermentation and food laboratory, supporting Millow’s research in mycelium science.

Millow’s binder-free, clean label protein is made from just oats and mycelium using a patented, dry-state fermentation process. Each 100g portion supplies up to 27g of complete protein, fibre and natural vitamins and minerals.

According to Millow, its protein sears like beef, leaves no after-taste and feels ‘light on the stomach.’ It is free of soya and pea isolates.

Staffan Hillberg, chair of Millow, said: “Critics say plant meat failed on taste and transparency; this factory shows we can solve both at industrial scale”.

The company’s scientific founder, Mohammad Taherzadeh, added that Millow’s platform can swap grain substrates overnight, allowing any region to grow its own advanced protein with minimal resources.

Sustainability has also been a focus for Millow, which said its proprietary S-Unit bioreactors cut energy demand to one-third of conventional fermentation lines. Water use is also 3-4 litres per kg, 95% lower than standard mycelium processes.

Millow is currently finalising distribution agreements with food brands, retailers and foodservice distributors, aiming to launch multiple products by the end of 2025.