Solar Foods Secures €100M in Funding for Second Production Facility
Finnish food technology company Solar Foods has secured over €100 million in funding for its second production facility and general operations. The company has completed a directed share issue and received a grant from Business Finland, with the funding tied to a final investment decision for the new plant.
Solar Foods' Second Production Facility Enters Final Design Phase
Finnish food technology company Solar Foods has secured more than €100 million in funding for its second production facility and general operations. The company has completed a directed share issue and received a grant from Business Finland, with the funding tied to a final investment decision for the new plant. The funding position rests on two developments from the first half of the year.
In January, Solar Foods completed a directed share issue of 5,154,691 new shares, raising approximately €25 million. In June, Business Finland granted the company €77.8 million, split between a €39.6 million grant and a €38.1 million research and development loan. Both are tied to the company's approved IPCEI notification under the European Commission and are conditional on a final investment decision for the new plant.
The planned Factory 02 facility in Selkäharju, Lappeenranta, has entered its final design phase. Solar Foods has appointed its principal partners for the project, including German systems supplier GEA, which has also taken an equity stake in the company, and Nordic energy firm Fortum, which will handle design work on hydrogen production, heating and cooling, and electrical infrastructure. Vicus Capital Advisors has been engaged to explore real estate investor options.
The company intends to make the final investment decision during 2026.
Commercial Pipeline Focused on the US Solar
Foods has reported 18 new product concepts under development in the health and performance nutrition category, its selected first market. The company's first US consumer product reached shelves earlier this year when sports nutrition brand Ambrosia Collective launched a ready-to-mix protein powder made with Solein under its Planta brand. In June, a separate US lifestyle company placed a Solein order for consumer product development.
The company recorded an operating loss of €6.8 million for the half-year, widening from €4.8 million a year earlier, which it attributed to increased personnel costs and expenses linked to the share issue. Revenue remained minimal at €0.1 million. Solar Foods does not expect significant revenue before Factory 02 is operational.
Work continues on novel food approval for Solein in the EU and a no-questions letter from the US Food and Drug Administration. CEO Rami Jokela framed the half-year around the plant: "During the first half of 2026, we made progress towards the final investment decision on the construction of the Factory 02 production facility.
Source: vegconomist