Alt-protein advances: Enifer nets €36M to bolster mycoprotein production

23 May 2024 --- Biotech company Enifer has secured €36 million (US$39 million) to construct a food-grade mycoprotein factory in Kirkkonummi, Finland. The site will convert food industry side streams into Enifer’s sustainable Pekilo fungi-based protein ingredients and is expected to be the “world’s first” commercial plant to produce such a mycoprotein ingredient from side stream raw materials.

This comes after the start-up commenced construction of its mycoprotein facility in the Uusimaa region of Finland after netting €12 million (US$13.1 million) in funding earlier this year.

The factory is projected to cost €33 million (US$35.7 million) and will formulate up to 3,000 tons of Pekilo annually, which is “enough to cover the annual protein needs of approximately 40,000 people,” says the company.

“Mycoprotein is the missing ingredient for a more sustainable food chain — the facility in Kantvik serves as a key steppingstone on our path to making mycoprotein a cornerstone of protein supply, with several future factories already being planned,” says Simo Ellilä, CEO and co-founder of Enifer.

The construction is set to finish by the end of next year.

“Brownfield project”
The plant will be built as a “brownfield project” within an existing industrial building in Kantvik, Kirkkonummi, Finland, close to Enifer’s existing R&D facilities.

The research facility will offer the upcoming factory all the required utilities, including steam, electricity, process and cooling water and waste-water treatment. 

The factory will commence operations in 2026 and once it is at total capacity, it will produce 500 kg of mycoprotein per hour.

Enifer's new facility will commence operations in 2026 and produce 3,000 tons of Pekilo annually (Image credit: Iiro Muttilainen).The new plant will house a 12 meters tall industrial fermenter measuring more than 4.5 meters in diameter to grow Pekilo mycoprotein.

Upcycling side streams to protein
The Pekilo fermentation process was initially developed in Finland in the 1970s and used to upcycle forest industry side streams into feed-grade mycoprotein, Enifer highlights.

The company modified the innovation by adapting it to new raw material streams from the food and agricultural industries, formulating a “food-grade version” of the mycoprotein ingredient.

Enifer formulates the ingredient by cultivating a specific species of fungus in a fermentation process similar to brewing beer or making soy sauce. 

The Pekilo mycoprotein powder is rich in high-quality protein and fiber, while also being neutral in color and taste. This makes the ingredient a nutritious product for diverse food applications. 

“Enifer and its partners have already demonstrated its use across meat and dairy alternatives, baking, pastries and snacks,” notes the company.

Supporting alt-protein demands
The cash injection is expected to bolster Enifer’s efforts to propel its alt-protein advancements. 

Pekilo mycoprotein powder is neutral in color and taste and can be used in meat alternatives (Image credit: Enifer).“We believe that there is an increased need for alternative proteins as the global population grows,” says Tero Saarno, managing director of Taaleri Bioindustry, which is leading the €15 million (US$16.26 million) Series B equity funding round.

“Demand is also supported globally by environmental and ethical considerations.”

The Finnish Climate Fund has also extended a €7 million (US$7.6 million) capital loan to support the project along with a €2 million (US$2.16 million) Climate and Environmental Loan provided by Finnvera.

Finnish Climate Fund’s CEO, Toni Mikkonen, agrees that the need for proteins is rising.

“Food production is, even at the level of technologies that can already be scaled, an unsolved key part of the climate challenge. In the future, sustainable food production will be based on several different solutions and the demand for new types of proteins is predicted to grow significantly over the next decade.”

Enifer is a spin-off company from VTT Technical Research Centre of Finland. It will file for Novel Foods approval of the novel ingredient this year and expects to receive approval in 2026.

By Insha Naureen