Finnish food technology company Solar Foods has secured EUR 77.8 million in combined public financing for the construction and commissioning of Factory 02, its planned industrial-scale Solein production facility in Selkäharju, Lappeenranta.
The package, approved by Business Finland, comprises a EUR 39.6 million grant and a EUR 38.1 million R&D loan under the EU’s IPCEI (Important Projects of Common European Interest) framework. Both are conditional on Solar Foods reaching a final investment decision for Factory 02 and securing its total financing.
Conditions and capital structure
The funding sits within a financing plan Solar Foods outlined in October 2025, covering equity, debt, and grants. The company raised approximately EUR 25 million through a private placement earlier this year. The grant covers a maximum of 48% of eligible project costs between 2027 and 2031, disbursed against approved cost statements. The R&D loan carries a 1% interest rate over ten years, with a five-year grace period and no collateral requirement.
Solar Foods intends to reach its final investment decision during 2026, pending binding customer agreements, EU novel food authorization, and a No Questions Letter from the US FDA.
Scale-up trajectory
Factory 02 will be built in phases: phase one targets 3,200 tons per year by end of 2028, with a second phase bringing total capacity to 6,400 tons annually, compared to the 160 tons currently produced at Factory 01. GEA is engaged for process equipment and Fortum for energy infrastructure.
“We are pleased with Business Finland’s funding decision. Solar Foods has executed its financing plan, communicated in October last year, with determination, and this funding decision is a significant part of the total financing in line with the company’s strategy,” said CEO Rami Jokela.
Business Finland Director General Lassi Noponen added, “Projects like this carry risks, but they are exactly the kind of high-ambition, high-expertise investments Finland needs to create entirely new industries and future growth.”
