Lappeenranta confirmed as location for Factory 02 project
By Rauli Juva
Translation: Original published in Finnish on 12/17/2025 at 7:57 am EET.
Solar Foods announced on Tuesday that it had chosen Lappeenranta as the location for its future industrial-scale production facility, Factory 02. Factory 02 will be the company's first large-scale facility, increasing its production capacity from the current 160 tons to 6,400 tons annually. While the news brings much-needed concrete details to the factory project, we saw it as an expected step, so it does not cause any immediate changes to our forecasts.
Lappeenranta chosen as home for industrial-scale facility
Solar Foods has chosen a site in Selkäharju, Lappeenranta, as the location for its Factory 02 after a comprehensive evaluation. Lappeenranta has been a strong option for some time, as the company reported earlier in August on the progress of evaluating Lappeenranta. The factory is planned to be carried out in phases, as the company has also previously announced. The capacity of the first phase is 3.2 kilotons per year, and the company aims to have it operational at the end of 2028. The following year, the company plans to expand to a capacity of 6.4 kilotons in a second phase. After this, construction of a third phase is also possible for the company.
With a more concrete plan, progress is on schedule
We consider the news regarding the site selection to be a positive and expected step in Solar Foods' strategy. The investment decision timeline (2026) aligns with the company's previous communications and our expectations. We also consider phased construction to be logical from risk management and financing perspectives. The company announced memorandum of understandings and letters of intent that, if realized, would cover around 100–120% of Factory 02's planned 6.4-kiloton capacity. As far as we know, the number of memorandum of understandings and letters of intent is practically the same as in the summer. At that time, the company stated that Factory 02's capacity would be 12.8 kilotons. Since then, the company has communicated that this level would only be achieved in a possible third phase.
Project to proceed with partner model, as announced by the company in October
Solar Foods confirmed that it will proceed with the project using a partnership model in which strategic partners will be responsible for real estate, hydrogen production, and electricity grids, e.g. This aligns with the company's previously communicated strategy to significantly reduce its own capital requirements. The company also plans to apply to Business Finland for a grant in accordance with the IPCEI notification, of which approximately 66 MEUR remains.
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 Figures15/08
| 2024 | 25e | 26e | |
|---|---|---|---|
| Revenue | 0.0 | 0.3 | 2.1 |
| growth-% | 275.5 % | 1,642.7 % | 528.4 % |
| EBIT (adj.) | -8.9 | -9.5 | -12.1 |
| EBIT-% (adj.) | -47,635.3 % | -2,913.1 % | -589.3 % |
| EPS (adj.) | -0.45 | -0.45 | -0.52 |
| Dividend | 0.00 | 0.00 | 0.00 |
| Dividend % | |||
| P/E (adj.) | neg. | neg. | neg. |
| EV/EBITDA | neg. | 2,007.8 | neg. |
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