Solar Foods granted 10 MEUR funding under the European Commission's 110 MEUR IPCEI notification

Translation: Original published in Finnish on 2/27/2025 at 8:53 am EET.

The funding Solar Foods received was not a surprise to us, given the progress of Solein's commercialization. For the investor, it is worth noting that the funding is linked to the already known 110 MEUR IPCEI (Important Project of European Interest) and is therefore not a new source of funding, and our own forecasts assume full utilization of the entire notification. However, it is a positive development that funding for the new section has been secured and the timetable for the first phase of the project has been extended by one year to the end of 2026. 

The decision on the first tranche of funding has already been made in 2022

On Wednesday, Solar Foods announced that it received a 10 MEUR funding decision related to the research, development and go-to-market of Solein. The funding from Business Finland is related to the European Commission's 2022 IPCEI (Important Project of European Interest) notification of 110 MEUR for Solar Foods' investment program for the commercialization of Solein and the future Factory 02 investment. Under this notification, Solar Foods received a financing decision from Business Finland for 33.6 MEUR in 2022 for the start-up and operation of Factory 01 and for the implementation of the pre-engineering phases required by the investment decision for Factory 02. The project also includes research and product development of the Solein protein, novel food characterization and product go-to-market. Business Finland has now decided to increase the grant for the first phase of the project by 10 MEUR, in line with the updated cost estimate of the project. At the same time, the timetable for the first phase of the project has been extended by one year to the end of 2026.

Business Finland pays the IPCEI grant on the basis of approved cost report retrospectively, which means that the beneficiary must initially finance the costs from its own resources. The grant is also limited to 81% of the total eligible costs under the terms of the decision.

The remaining potential additional funding under the notification amounts to roughly 66 MEUR

Solar Foods is also seeking a funding decision for the remaining IPCEI notification worth approximately 66 MEUR for the project. This grant is intended for the next phase of the project, which will cover the construction costs of the future Factory 02 production plant. The investment in Factory 02 is estimated to be around 317 MEUR, so in addition to the remaining grant, the investment will also require a significant amount of funding from other sources. Today, on Solar Foods' earnings day, we are looking for more visibility on the progress of Solein's commercialization and project financing.