Finland-based Enifer raises €36M to address global protein demand with its PEKILO mycoprotein

Espoo-based Enifer, a biotech startup, has secured €36M in fresh funding to build a food-grade mycoprotein factory in Kirkkonummi, Finland.

Set to be completed by the end of 2025 at a cost of €33M, the facility will convert food industry by-products into Enifer’s sustainable PEKILO fungi-based protein ingredients.

According to the Finnish startup, this will be the world’s first commercial plant to produce mycoprotein from sidestream raw materials.

Investors supporting Enifer

The new funding package includes €15M from a Series B equity round led by Finland’s private equity fund Taaleri Bioindustry Fund I, with follow-on investments from existing investors Nordic Foodtech VC, Voima Ventures, Valio, and Laine Holding.

The Finnish Climate Fund has added a €7M loan, and Finnvera has provided a €2M Climate and Environmental Loan. Along with a previous €12M grant from Business Finland, this makes the factory fully funded.

The Finnish Climate Fund’s acting CEO, Toni Mikkonen, says, “The world’s population and the need for protein are growing. Food production is – even at the level of technologies that can already be scaled – an unsolved key part of the climate challenge.”

“In the future, sustainable food production will be based on several different solutions and the demand for new types of proteins is predicted to grow significantly over the next decade.”

“Enifer’s already tested technology is interesting as the nutrients of various side streams can be upcycled and their processing value increased instead of energy use.”

What will the new €33M factory in Kirkkonummi offer?

The factory will make up to 3,000 tons of PEKILO mycoprotein every year, enough to meet the protein needs of about 40,000 people. Producing PEKILO mycoprotein uses very little land and water and has a low carbon footprint, making it an eco-friendly alternative to animal and plant proteins.

The factory will be built in an existing industrial building in Kantvik, Kirkkonummi, Finland, near the Baltic Sea and just 30 minutes from Helsinki. It’s close to Enifer’s R&D facilities and has all necessary utilities, such as steam, electricity, water, and wastewater treatment. 

The factory will start operations in 2026, and when fully operational, it will produce 500 kilograms of mycoprotein per hour.

The factory will feature a large industrial fermenter, over 12 meters tall and 4.5 meters wide, where PEKILO mycoprotein is produced. It will employ about 15 people once operational and more than 30 people during construction and setup.

What is PEKILO?

PEKILO mycoprotein is made by growing a specific type of fungus through fermentation, similar to brewing beer or making soy sauce. The resulting powder is rich in high-quality protein and fibre and it has a neutral colour and taste. This makes it a versatile ingredient for many foods.

Enifer and its partners have already used it in meat and dairy alternatives, baking, pastries, and snacks.

The PEKILO fermentation process was created in Finland in the 1970s to turn forest industry by-products into animal feed. Enifer has updated this process to use by-products from the food and agriculture industries, making a food-grade version of the mycoprotein. 

The company plans to apply for Novel Foods approval in 2024 and expects to get approval by 2026.

Simo Ellilä, CEO and co-founder of Enifer says, “At Enifer, we’re extremely excited to announce the kick-off of our first factory investment project. For over half a century, Kantvik has been at the heart of Finnish bioindustries, and I could not think of a better location to bring PEKILO fermentation back to life.”

“I would like to thank our new investors, in particular Taaleri Bioindustry and the Finnish Climate Fund, for joining us in our mission.”

“Mycoprotein is the missing ingredient for a more sustainable food chain – the facility in Kantvik serves as a key steppingstone on our path to making mycoprotein a cornerstone of protein supply, with several future factories already being planned.”

Brief about Enifer

Enifer is a company born at the VTT Technical Research Centre in Finland. It was started by five scientists in 2020 to improve and commercialise the PEKILO technology. The founders include Simo Ellilä, Joosu Kuivanen, Heikki Keskitalo, Ville Pihlajaniemi and Anssi Rantasalo.

Originally used by the Finnish forest industry, PEKILO turns waste into high-protein mycoprotein. Enifer works with major global companies like Skretting, Purina, and Valio to use this technology in feed and food products.