Finnish food technology company Solar Foods has secured €77.8 million in public funding from Business Finland to support the construction and commissioning of its planned Factory 02 production facility, marking a major milestone in the scale-up of its air-based protein ingredient Solein.

The financing package, announced on 17 June, comprises a €39.6 million grant and a €38.1 million research and development loan tied to the company's participation in the European Union's Important Projects of Common European Interest (IPCEI) hydrogen initiative.

The funding will be directed toward the construction and commissioning of Factory 02 in Selkäharju, Lappeenranta, Finland, a facility expected to play a central role in Solar Foods' ambition to commercialise Solein at an industrial scale.

Solein, a novel protein produced using carbon dioxide, hydrogen and renewable electricity, has attracted significant attention from the food industry as a potential low-impact ingredient for foods and beverages. The company positions the technology as a way to decouple protein production from traditional agriculture while reducing land and water use.

The newly announced funding forms a key component of Solar Foods' broader financing strategy unveiled in October 2025, which combines equity, debt and grant financing to support expansion.

Rami Jokela, CEO of Solar Foods, said: "The funding decision is a significant part of the total financing in line with the company's strategy. We have executed our financing plan with determination and are pleased with Business Finland's decision."

Factory 02 is expected to represent Solar Foods' next major step following the commissioning of Factory 01, providing substantially larger production capacity as the company seeks to meet growing commercial demand.

The funding package will support multiple phases of the project, including facility construction, equipment procurement, installation, commissioning and production ramp-up ahead of commercial-scale operations.

"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 and will support the implementation and ramp-up of Factory 02, as well as the large-scale commercialisation of Solein. The 10-year R&D loan carries a 1% interest rate, includes a five-year grace period and requires no collateral.

Despite the funding milestone, Solar Foods has not yet reached a final investment decision for Factory 02. The company said it continues to focus on securing customer agreements, strengthening strategic partnerships, advancing facility design and completing regulatory milestones, including novel food approval in the European Union and a No Questions Letter from the US Food and Drug Administration.

The project is part of the EU-backed Hy2Use hydrogen IPCEI initiative, which aims to accelerate innovation and industrial deployment across Europe's hydrogen value chain. Solar Foods was selected for the programme in 2022 and has already received earlier rounds of support for Factory 01 and preliminary development work for Factory 02.

The latest funding announcement highlights growing public-sector support for alternative protein technologies as governments and industry seek scalable solutions to improve food security and reduce the environmental footprint of food production.

If completed as planned, Factory 02 could become one of the world's largest facilities dedicated to producing protein from air and renewable energy, positioning Solar Foods as a key player in the emerging precision and climate-resilient food ingredients sector.