Solar Foods SLRFF, a Finnish food technology company, has developed a unique twist on protein food production by harnessing renewable energy and capturing carbon dioxide.

The company has developed a way to create edible calories—literally "food out of thin air." The food production could feed more people worldwide and provide sustenance for astronauts traveling on Elon Musk's first interplanetary mission to Mars.

Founded in 2017 as a private venture, Solar Foods remained relatively unknown until its initial public offering (IPO) in August 2024 on Nasdaq First North Growth Market Finland. With a concentrated ownership structure, high insider ownership, and institutional interest, the company has positioned itself to scale globally.

Solar Foods originated in a research program at VTT Technical Research Centre of Finland and Lappeenranta University of Technology. Biotechnology researchers Dr. Pasi Vainikka and Dr. Juha-Pekka Pitkänen discovered how to turn emission-free electricity and captured CO2 into edible calories using hydrogen fermentation.

The production process has developed outside traditional agriculture. It uses no arable land, animals, or large amounts of water, making its location independent. Yet, it creates a product containing all nine essential amino acids required by the human body, making it a complete protein source that can feed people worldwide.

Solar Foods' first product, Solein, uses microbial protein cultivated using carbon dioxide, hydrogen, and electricity. The process involves cellular agriculture. This involves a single microbe, discovered in Finnish nature, grown in bioreactors—much like brewing beer.

The microbe feeds on a nutrient-rich medium As it multiplies, the company continuously harvests and dries it into a yellowish, protein-rich powder. Solein has a high nutritionally make up and a neutral in flavor. Consumes can use the product as a milk or egg substitute.

Solar Feeds protein requires 0.1% of the land and 1% of the water needed for beef protein. It emits 130 times less greenhouse gases than beef.

Inderes Analyst Thomas Westerholm discussed its advantages in an interview for Inderes Nordic.

"Production of Solein isn't at all reliant on weather," he said. "It’s a very efficient way of producing protein which is attractive in this model. It consumes less water than traditional agriculture and the production is rather fast. A batch of Solein grows in 70 hours."

Despite promising technology, Solar Foods has operated in a highly regulated market that has curbed its expansion. Singapore approved Solein as a first novel food in 2022

In the United States, Solar Foods has achieved self-GRAS (Generally Recognized as Safe) status, allowing limited sales. It has worked toward full FDA notification, which it hopes to secure by 2026.

In Japan, Solar Foods' partnerships with local leaders like Ajinomoto AJINF, a major producer of amino acids and food ingredients, could streamline the regulatory process.

In the European Union (EU), Solar Foods needs multi-year safety reviews and approval among member states. The EU process takes into account population, giving large countries like Germany or France more power in the process.

"In Europe, the company estimated that it would take up to four years to get the status—we're halfway there," Westerholm said. "The company aims to get it in 2026."

The company's first demonstration plant, Factory 01 in Vantaa, Finland, began operations in spring 2024 with a capacity of 160 tons of Solein per year. This output is enough for approximately five million meals.

The company needs to do more to achieve a positive cash flow. To reach that milestone, the management sees two main channels of growth.

First, the company plans to invest in and operate its large-scale production plants, selling Solein as a raw material to food manufacturers and restaurants. This approach requires significant capital investment and access to affordable electricity, as the process is energy-intensive.

Second, and potentially more scalable, Solar Foods could license its proprietary technology and microbial strains to other producers. This "asset-light" approach would allow partners to finance and operate their facilities, while Solar Foods collects licensing fees and provides technical support.

Concrete partnership opportunities have emerged. Last month, Solar Foods signed a letter of intent with a “leading international brand in Health & Performance Nutrition” to build a new plant. If executed successfully, it could kick-start its licensing revenue stream.

The partnership with Ajinomoto is promising for the Asian market. The dietary supplement market in the Asia Pacific is projected to grow at 9.9% from 2025 to 2033, reaching over $150 billion. Ajinomoto's expertise and distribution network could accelerate adoption.

Solar Foods has attracted the attention of the space industry. The company won its category in NASA's Deep Space Food Challenge, a competition to develop sustainable food solutions for long-duration space missions.

While the award did not come with direct funding, it provided valuable visibility and credibility among space agencies and contractors.

With the Artemis program targeting a return to the Moon and Tesla (TSLA) CEO Elon Musk’s ambitious plans to colonize Mars, Solein could be a top candidate to feed the astronauts.

The ability to produce protein from air, water, and electricity, without reliance on agriculture, is the right solution for resource-constrained space missions.

Financially, Solar Foods is still pre-revenue, with its demonstration plant serving primarily to prove that the technology can scale.

The company could, as modeled by analysts, achieve revenue and profitability after 2030. This depends on larger plants being operational and licensing deals in place.

By 2037, Solar Foods could reach nearly €600 million in annual revenue, with about 30% coming from licensing, Westerholm estimated.

However, this scenario depends on the successful construction of multiple full-scale facilities—either by Solar Foods or its partners—and on securing the necessary financing.

The European Commission has recognized Solein production as an Important Project of Common European Interest (IPCEI). This recognition could grant the company up to €110 million in funding, which would be fundamental for the construction of Factory 02. A site in Selkäharju, Lappeenranta, in Finland, is one of the possible locations for the next production facility.

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