Solar Foods: New letter of intent related to future production plant
By Rauli Juva
Translation: Original published in Finnish on 7/16/2025 at 7:00 am EEST.
Solar Foods announced it had signed a letter of intent for 500-1650 tons of annual Solein production between 2026 and 2030. This corresponds to 4-13% of the planned Factory 02's production capacity. The company announced in March two other letters of intent, which, together with this agreement, account for approximately 50-60% of the future production facility's capacity. This supports the company's growth prospects and opportunities to implement the planned factory investment. In addition, we believe customers can also support financing for the factory project. Our forecasts already anticipate the company's relatively successful commercialization of Solein, and the agreement therefore does not impact them.
The new letter of intent strengthens the outlook for the future plant
Solar Foods states that it has signed a letter of intent with a "leading international brand in Health & Performance Nutrition". As a letter of intent, the agreement is non-binding, and its purpose is to define product development cooperation between the companies and to guide planning towards binding agreements. Interest in Solein indicates its commercial potential.
The company plans an investment in an industrial-scale factory (Factory 02), with a full capacity of 12,800 tons in 2030. The final investment decision for the facility is scheduled for 2026, with production commencing in 2028 and gradually ramping up to full capacity. Together with the letters of intent signed in March, the company now has letters of intent totaling about 50-60% of the planned plant’s production capacity. The company has also announced smaller contracts this year.
Customers may also provide support for the financing of the factory project
Letters of intent are naturally a positive signal for Solein produced by Solar Foods and support the company's plans to scale up production to an industrial scale. The plant investment is substantial for Solar Foods, but we believe customers may support the project's financing, e.g., through equity stakes or pre-orders.
Solar Foods established in 2017 is a global leader in sustainable protein production, solving the global food production problem by offering a completely new alternative to existing animal and plant proteins. Solar Foods’ first product is the naturally occurring single-cell protein Solein®, which can be used as a food raw material with high protein content. In the long run, Solein production will improve global availability of protein and increase price and quality stability of food raw materials by disconnecting food production from agriculture.
Read more on company pageKey Estimate Figures28.02.2025
| 2024 | 25e | 26e | |
|---|---|---|---|
| Revenue | 0.0 | 0.5 | 2.3 |
| growth-% | 275.5 % | 2,741.3 % | 331.2 % |
| EBIT (adj.) | -8.9 | -9.2 | -11.9 |
| EBIT-% (adj.) | -47,635.3 % | -1,721.2 % | -520.8 % |
| EPS (adj.) | -0.45 | -0.42 | -0.51 |
| Dividend | 0.00 | 0.00 | 0.00 |
| Dividend % | |||
| P/E (adj.) | neg. | neg. | neg. |
| EV/EBITDA | neg. | 262.3 | neg. |
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