Finnish foodtech innovator Happy Plant Protein is taking a significant step toward commercial scale, with its patented dry extrusion technology set to be deployed in a new agriculture-based production facility in Latvia.
The greenfield project, developed in partnership with Latvian agricultural company Agrofirma Lobe, represents a shift toward decentralised protein manufacturing by enabling the processing of locally grown crops into high-value plant-based ingredients directly at the source.
The facility will process crops such as faba beans, oats and peas into textured vegetable protein (TVP), targeting customers across the Baltics, Nordics and broader European markets.
Unlike conventional protein isolate plants, which can require investments of up to €150 million, the Latvian site is being developed with an investment of approximately €6 million, supported in part by EU funding.
The project signals three key industry milestones: the establishment of industrial-scale plant protein production in Latvia, the introduction of a simplified and scalable production model, and the first industrial deployment of Happy Plant Protein’s proprietary technology.
At the core of the project is Happy Plant Protein’s dry extrusion technology, a single-stage process that converts flour directly into textured protein. The system eliminates the need for chemical inputs, reduces water and energy usage, and produces no side streams, addressing both cost and sustainability challenges associated with traditional processing methods.
The technology also tackles a longstanding issue in plant-based formulation: off-flavours. Developed from research originating at VTT Technical Research Centre of Finland, the process is designed to deliver cleaner-tasting protein ingredients suitable for a wide range of applications, including plant-based and hybrid products.
For food manufacturers, this could streamline R&D and accelerate product development cycles, particularly in categories where taste and texture remain barriers to adoption.
A central ambition of the project is to rebalance value creation within the supply chain. By enabling protein production closer to primary agriculture, the model allows farmers and cooperatives to move beyond commodity crop sales into higher-margin ingredient production.
This localisation strategy also strengthens regional protein self-sufficiency, an increasingly important consideration as Europe seeks to reduce reliance on imported protein sources and build more resilient food systems.
Construction is expected to take around one year, with production scheduled to begin in early 2027. Once operational, the plant will have an annual capacity of approximately 5,000 tonnes.
