A Grant Covering Up to 48% of Eligible Costs
The €39.6 million grant covers a maximum of 48% of eligible costs over the 2027–2031 period. Business Finland conditions disbursements on the semi-annual submission of cost statements by Solar Foods; expenditures are only definitively validated upon submission of the final report. The funding will be allocated to the Factory 02 implementation phase, covering construction, contract management, delivery of key process equipment, installation, commissioning, and production ramp-up prior to the start of mass production.
The financing forms part of the plan announced by Solar Foods in October 2025, which combines equity, debt, and grants. The company states that the funding decision received represents, in its view, “a significant part of the total financing, in line with the company’s strategy.”
A Ten-Year R&D Loan at 1% Interest
The €38.1 million R&D loan has a ten-year term, including a five-year grace period. The interest rate is set at 1% with no collateral requirement. The state aid element associated with the loan is estimated at €6 million. Finland’s State Treasury is responsible for post-decision tasks, including drafting the loan note and managing payment transactions. A first instalment of approximately 30% of the loan’s nominal value will be paid after the loan note is signed and the required documents are submitted, including the final investment decision for Factory 02.
The loan is intended to scale up and optimize the production process for Solein — the protein Solar Foods produces from CO2 and electricity — in order to achieve the productivity, energy efficiency, and product quality targets set for the facility. Factory 02 is planned for Selkäharju, in the city of Lappeenranta.
Final Investment Decision Expected in 2026
Solar Foods says it aims to reach a final investment decision for Factory 02 during 2026. Several conditions must still be met: securing sufficient binding customer agreements, building a partner network, advancing facility design, completing the financing plan, obtaining novel food approval from the European Union, and receiving a No Questions Letter from the U.S. Food and Drug Administration (FDA).
Factory 02 is part of the IPCEI Hy2Use initiative, dedicated to research, innovation, and the first industrial deployment of infrastructure in Europe’s hydrogen value chain. Solar Foods was selected under this framework in September 2022. Rami Jokela, CEO of Solar Foods, states that the company “has executed its financing plan with determination.” Lassi Noponen, Director General of Business Finland, says the agency was able to “structure a significant financing package by combining Business Finland funding with EU clean transition instruments.”
