We feel the news reduces the risks associated with the scaling of Solein's production, which is positive for the company and may increase customer interest in the industrial-scale Factory 03 plant, which is in the pre-planning phase.

Due to KelpEat's small scale, the news has a limited impact on Solar Foods' investment story, but in our view, it is a step in the right direction to strengthen Solein's recognition in the key US market.

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 Memoranda of Understanding are not yet binding, but if implemented would cover annual production of 6,000 tons of Solein, which is almost half of the full production capacity of the planned industrial-scale Factory 02.