Solar Foods announced its first million-dollar supply agreement

Translation: Original published in Finnish on 03/21/2025 at 07:40 am EET

We see the 1.39 MEUR supply agreement as positive for Solar Foods, as it will provide a new data point to validate Solein demand and a healthy price point. The release lowers the risk associated with Solar Foods' growth prospects in the coming years, but it does not necessitate estimate changes, as our estimates require a reasonable number of similar commercial successes in the coming years.  

The supply agreement has a positive signal value, but agreements for Factory 02's production will ultimately decide the game

Solar Foods announced on Thursday that it had signed a supply agreement with Superb Food. Superb Food is a startup company that develops and markets solutions for the health and vitality of people on their GLP-1 journey. Superb Food thus focuses on the Health & Performance nutrition category, which is strategically central to Solar Foods.

The supply agreement is worth 1.39 MEUR and includes a commitment to purchase a total of 80 tons of Solein between Q3’25 and Q2’28. The agreement prices Solein at approximately EUR 17.3 per kg, which corresponds to the expectations indicated by Solar Foods' CMD regarding the product's price point, thus providing one source of validation for the demand for Solein at a good price level. The total volume of the agreement covers approximately half of Solar Foods' current annual production capacity at its 01 demonstration facility (and around one-third of the plant's potential capacity, given Solein's current growth rate). Due to the limited production capacity of Factory 01, Solar Foods must be careful with the supply agreements of the current plant. As a result, the supply contracts for Factory 01 are on a much smaller scale than Solar Foods' previously signed MoUs covering 6,000 tons of Solein production. If these MoUs result in binding supply agreements, they will correspond to almost half of the production of the industrial-scale Factory 02, which is in the preliminary design phase. In addition, we believe that these major customers could, in one way or another, participate in financing the investment in the future industrial-scale production plant.