Solar Foods Oyj, inside information, 14 October 2025, at 20:20 EEST
Inside information: Solar Foods Oyj updates operating model of Factory 02 and specifies financing needs
Solar Foods Oyj ("Solar Foods" or "the company") has decided to proceed with the pre-engineering and implementation of the Factory 02 production facility with a network of strategic partners. This allows the company to focus more strongly on developing its core technology - gas fermentation - and related biology, as well as on the global commercialisation of Solein®. Utilising strategic partners would significantly reduce the company's financing needs for the implementation of Factory 02 and potentially other future production facilities.
In the chosen model, strategic partner companies would be responsible for the implementation, operation, and maintenance of agreed sub-entities of Factory 02. The company aims to select 2-3 strategic partners who would be responsible for, e.g., Factory 02's real estate, hydrogen production, electricity grids, and cooling and heating capacity.
"We have explored various options and found leading partners in their respective fields to implement Factory 02. Utilising partners would facilitate the company's capital acquisition, and at the same time, the return on invested capital would significantly improve," says Ilkka Saura, CFO of Solar Foods.
The construction of Factory 02 is planned to be carried out in three phases. The design capacity of the first phase is 3.2 kilotons per year and the total investment is estimated to be EUR 134 million, of which the share of strategic partners is approximately EUR 95 million. After this, the production plant is planned to be expanded in a second phase to a design capacity of 6.4 annual kilotons, which means a total investment of EUR 182 million, of which the share of strategic partners is approximately EUR 127 million. A potential third phase will increase capacity to 12.8 kilotons per year. The presented production volumes are based on already achieved production parameters.
The company has agreed with the city of Lappeenranta on the reservation of a plot in Selkäharju for a preliminary study related to the construction of a production facility. The Selkäharju plot would allow for the construction of a total of three production facilities in the same location. The company also sees opportunities for future factory projects in the Nordics, the United States, and the Middle East, among other regions. The decision on the location of Factory 02 is expected to be made by the end of 2025, and the final investment decision during 2026.
Solar Foods updates its financial estimates
The company is refining its estimates for the financial figures of phases 1 and 2 of Factory 02. The estimate is illustrated in the table below.
According to the chosen strategy, the company's equity requirement, including the implementation of phases 1 and 2 of Factory 02, would be approximately EUR 25-35 million. This requires the company to be able to fully utilise the EUR 110 million notified IPCEI grant. Of this grant, EUR 44 million has been granted, EUR 21 million received, and approximately EUR 23 million remains unpaid. EUR 66 million is still ungranted. The company is currently exploring implementation options with the government for utilising the remaining grant notification for the Factory 02 project. The equity requirement of EUR 25-35 million is also conditional on obtaining sufficient debt financing.
| Source of financing | Estimate of financing needs with strategic partners, MEUR | Estimate of financing needs without strategic partners, MEUR |
| Equity | 25-35 | 70-80 |
| Debt | 65-75 | 165-175 |
| Grants | 89 | 89 |
| Solar Foods' share in total | 179-199 | 324-344 |
| Share of strategic partners | 127 | 0 |
| Total capital expenditure for Factory 02 | 55 | 182 |
With the chosen business model, in which Solar Foods utilises strategic partners, the company estimates that, with already achieved productivity and energy efficiency levels (productivity 1.5 g/l/h and O2/CO2 ratio 3), it will achieve the company-level figures presented below by 2030, including phases 1 and 2 of Factory 02. The company has continuously been able to improve production efficiency parameters and believes it can raise them further from the levels already achieved. The selling price is in line with the market price of whey protein isolate and concentrate. Estimates for the company's income statement by 2030 are presented in the table below. The numbers are illustrative, and they are not financial targets or guidance.
| Revenue | 97-119 MEUR |
| Gross profit | 60-74 MEUR |
| EBITDA | 34-42 MEUR |
| EBIT | 31-37 MEUR |
The income statement estimates are based on the following assumptions:
| Price of electricity | €40 / MWh |
| Production cost | €6.5 / kg |
| Other costs | €4.6 / kg |
| Depreciation (20 years) | €0.5 / kg |
| Average selling price | €17.0 / kg |
| Company-level EBIT | €5.4 / kg |
The company is exploring equity financing and has appointed DNB Carnegie Investment Bank AB as its advisor.
Additional information
Rami Jokela, CEO, rami.jokela@solarfoods.com, tel. +358 10 579 3288
Ilkka Saura, CFO, ilkka.saura@solarfoods.com, tel. +358 10 579 3289
Photos for media use: www.solarfoods.com/media
Certified Advisor
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 enhance the properties of food: it can be a source of iron, fiber or B vitamins, and it can bring various techno-functional properties to foods. 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 www.solarfoods.com and investors.solarfoods.com.
