Solar Foods Oyj, company announcement 14 August 2025 at 8:50 EEST
Solar Foods Oyj refines its plan concerning implementation of Factory 02 and the total capital requirement
Solar Foods Oyj ("Solar Foods" or "the company") has refined the implementation of its strategy and plans concerning the production facility Factory 02. At the same time, the company estimates the total capital requirement. The main outlines of the company's strategy, published on 10 December 2024, remain the same. During the ongoing strategy period, the company will primarily focus on strengthening international growth and sales, increasing production capacity by building and commissioning Factory 02, and related to these, implementing the investment program.
Strengthening international growth and sales
The company's chosen target market, the Health & Performance nutrition segment, has grown strongly in the United States, by over 10% on an annual basis, and the company estimates that it will continue to grow in the future. The fast growth of the market and the global availability restraints of whey protein offer Solein an immediate growth opportunity. Solein offers customers a functional, versatile and nutrient-rich ingredient, which can be produced all year round more efficiently and with a lower environmental impact than traditional production methods.
Over the past year, the feedback from customers, as well as conducted consumer studies, show that Solein can provide customers with significant added value in terms of its flavour profile, functionality, nutritional content, and sustainability. During the first 9 months of the company's ongoing strategy period, Solar Foods has significantly strengthened Solein's value proposition.
The company will focus even more strongly especially on companies in the Health & Performance nutrition category, as well as international CPG companies (consumer packaged goods).
Plans for the Factory 02 production facility have been refined
The company has specified the plan related to the construction of the Factory 02 production facility. The construction of Factory 02 is planned to be carried out in three phases, utilizing optimized modules, which ensure an efficient cost structure and optimized unit costs. All phases are expected to achieve a positive EBITDA.
The company will continue to develop key phases of the bioprocess by, for example, utilizing machine learning and AI in collaboration with leading partners. This and other product development measures support the achievement of better production parameters, e.g., higher productivity and better energy efficiency, at Factory 01. In addition, the company is exploring the possibility of building a network of strategic partners, which will allow it to leverage the expertise of its partners and thus increasingly focus its resources on developing its core technology. The strategic partners could, for example, be responsible for the implementation of specific modules and their financing at Factory 02. Utilising the partner network would also enable a smaller capital requirement for the production facilities, and also exploration of production facility opportunities abroad.
Solar Foods is currently implementing the project plan for Factory 02. In addition to the pre-engineering, the company is evaluating possible locations for the production facility also outside Finland. Factory 02 has attracted significant international interest, and the company sees possibilities for production facility projects, for example, in the Nordic countries, the United States and the Middle East. The company is preparing an agreement with the City of Lappeenranta, Finland, to reserve a site in Selkäharju for the preliminary studies related to the production facility. The final decision about the location of the Factory 02 production facility is expected to be made by the end of 2025, and the final investment decision during 2026.
Company's total capital requirement for the strategy period 2025-2030
The company has estimated its total capital requirement for implementing its growth strategy. This estimate is illustrated in the table below. Solar Foods expects to achieve an EBITDA of 33-37% by 2030, if phases 1 and 2 at Factory 02 have been implemented based on the already achieved production parameters.
| Type of capital | Capital requirement with strategic partners, EUR million | Capital requirement without strategic partners, EUR million |
| Equity | 25-35 | 70-80 |
| Debt | 65-75 | 165-175 |
| Grants | 90 | 90 |
| Total | 180-200 | 325-345 |
The company has been granted a funding decision amounting to EUR 44 million, related to the IPCEI notification granted by the European Commission (Important Project of Common European Interest). From this funding decision the company has received EUR 19 million in payments, and the remaining EUR 25 million has not been received yet. The amount of this IPCEI notification granted by the European Commission, until the completion of the implementation of Factory 02, is approximately EUR 110 million. The company is currently looking for implementation options with the Finnish government to use the remaining notification for the Factory 02 project. The IPCEI notification, granted to Solar Foods in 2022, is meant to partially cover the construction costs of Factory 02.
Organisational restructuring to support strategy
In order to speed up the implementation of its strategy, Solar Foods has decided to initiate change negotiations that aim at restructuring the organisation. The aim of the restructuring is to strengthen the company's commercial function by centralising all commercial and product-related functions into one organisation. Also, the resources and know-how related to the Factory 02 production facility project are strengthened through internal transfers.
The change negotiations are not planned to lead to personnel reductions or lay-offs. The negotiations will start on 25 August 2025.
"Solein is an excellent product, and we have verified the scalability of its production into industrial scale. The Health & Performance Nutrition market chosen in the strategy is growing strongly, which has led to high demand for among others proteins, and particularly whey proteins. This gives Solein an immediate growth opportunity. We are reorganizing our internal resources to better support the commercialization of Solein and our Factory 02 project. These actions move us forward as we transition from a technological innovator to a global commercial player. Solein has a real chance to revolutionize global food production and make future food more sustainable," says Rami Jokela, CEO of Solar Foods.
Additional information:
Rami Jokela, CEO, rami.jokela@solarfoods.com, tel. +358 10 579 3288
Images for editorial use: www.solarfoods.com/media
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DNB Carnegie Investment Bank AB (publ)
What is Solein?
Solein is an all-purpose protein grown with the air we breathe: The unique bioprocess takes a single microbe, one of the billion different ones found in nature, and grows it by fermenting it using air and electricity. Solein is a nutritionally rich and versatile ingredient which can replace protein virtually in any food. Solein can also be used as a fortifier to complement the nutritional profile of various foods: it can be a source of iron, fibre and B vitamins, and it can also bring different techno-functionalities into food products. Learn more at www.solein.com.
About Solar Foods
Solar Foods produces Solein®, a protein created using carbon dioxide and electricity. This innovative production method is independent of weather and climate conditions, eliminating the need for traditional agriculture. Founded in Finland in 2017, Solar Foods is listed on the Nasdaq First North Growth Market Finland. Learn more at solarfoods.com and investors.solarfoods.com.
