Analyst Comment
Solar Foods: Fortum partnership lowers Factory 02 implementation risks
Summary
- Solar Foods has signed a development agreement with Fortum for energy services at its future Factory 02, aligning with the company's strategy to secure critical partners before the final investment decision expected later this year.
- Fortum will handle design work related to hydrogen production, cooling and heating solutions, and electrical infrastructure, supporting the technical implementation of Factory 02, which is crucial for Solar Foods' Solein production process.
- The Factory 02 project in Lappeenranta aims to increase production capacity significantly, with the first phase expected to be completed by the end of 2028, contingent on converting letters of intent into binding sales agreements and securing additional funding.
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Translation: Original published in Finnish on 5/15/2026 at 9:10 am EEST.
Solar Foods announced that it has signed a development agreement with Fortum for energy services for the future Factory 02 production facility. The agreement aligns with our expectations, as the company's strategy is to secure critical platform partners for the factory investment before the final investment decision, which is anticipated later this year. The news does not necessitate changes to our forecasts, but securing an energy partner is another step forward for the industrial-scale Factory 02 project, which is critical to the investment case.
Fortum's technical expertise supports production scaling
Within the framework of the development agreement, Fortum will be responsible for the design work related to hydrogen production, cooling and heating solutions, and electrical infrastructure for Factory 02. Hydrogen and renewable electricity are critical inputs for Solein's gas fermentation process, so Fortum's specialized expertise supports the technical implementation of the facility. Solar Foods is building the new factory together with strategic partners so that the company can focus its resources on bioprocess development and commercialization, and limit its direct investment needs. The company has already entered into a similar partnership with system supplier GEA and appointed Vicus Capital Advisors as its advisor for real estate investment options.
Factory 2 investment decision is the key milestone for the current year
The planned Factory 02 in Lappeenranta is a crucial step for Solar Foods' commercialization, as it would increase production capacity from the current 160 tons to 6,400 tons per year. The final investment decision has not yet been made, but construction is planned to be carried out in phases, with the first 3.2 kiloton phase completed by the end of 2028. We estimate that the final investment decision will require, in addition to partnerships, the conversion of letters of intent into binding sales agreements and securing significant additional funding for the factory investment.
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 Figures27/02
| 2025 | 26e | 27e | |
|---|---|---|---|
| Revenue | 0.1 | 1.9 | 4.3 |
| growth-% | 560.1 % | 1,455.6 % | 125.7 % |
| EBIT (adj.) | -10.4 | -12.7 | -19.9 |
| EBIT-% (adj.) | -8,414.9 % | -660.1 % | -459.7 % |
| EPS (adj.) | -0.47 | -0.46 | -0.70 |
| Dividend | 0.00 | 0.00 | 0.00 |
| Dividend % | |||
| P/E (adj.) | neg. | neg. | neg. |
| EV/EBITDA | neg. | neg. | neg. |
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