Biotech Startup Enifer Receives $13M Grant to Build Protein Facility

Finnish biotech startup Enifer will build its first commercial-scale PEKILO mycoprotein ingredient factory, thanks to Business Finland conditionally approving a recycling and reuse investment grant of more than €12 million (US $13 million).

The funding comes from the European Union NextGenerationEU recovery instrument. It will support building first-of-its-kind industrial facilities promoting the reuse and recycling of industrial byproducts and waste streams, which aligns with the EU’s circular economy action plan and the Sustainable Growth Programme for Finland.

The commercial-scale factory will produce Enifer’s unique PEKILO mycoprotein ingredients, which are made using fungal fermentation. The fermentation process was originally developed by Finnish forest industry engineers in the 1970s. As the world’s first commercial mycoprotein production process from 1975 to 1991, it converted forest industry by-products into sustainable feed protein for the domestic market.

Mycoprotein is a type of protein that comes from a fungus, a category of living things that includes mushrooms. 

Enifer has taken the original process many steps further and developed a food-grade ingredient based on the original PEKILO® technology. The product is a protein- and fiber-rich powder with a neutral taste and color that can be used in a similar way to plant-based proteins in the food industry today. The company is expecting to file for regulatory approval of its food-grade ingredient during the first half of 2024.

The new facility will have a production capacity of 3 million kg per year of sustainable, locally sourced protein. The factory is currently projected to cost €30M to build and is expected to be completed by the end of 2025, with production ramp-up occurring in 2026.

“A key objective for the original developers of PEKILO® was to take this amazing source of protein to food applications. It is an absolute privilege for Enifer to be able to finally complete that mission, more than 50 years on,” said  Simo Ellilä, CEO and Co-founder of Enifer.

“This plant will be a critical stepping stone to scaling the production of PEKILO as a truly universal protein source — which we aim to commercialize globally across different applications. Thanks to the unique history of PEKILO, we are able to take this giant leap from our existing pilot directly to a commercial-scale facility. We are extremely grateful for the financial support approved by Business Finland and the European Union NextGenerationEU programme, which will enable us to take this huge step in the coming year,” he added.

Enifer raised €11M series A funding in spring 2023, and has already has ongoing partnerships with big global companies in the feed and food industries, such as Skretting, the global aquafeed division of Nutreco, Purina for pet food, and Valio for consumer food products.