Solar Foods Oyj, company announcement 14 August 2025 at 9.00 EEST

Solar Foods Oyj half-year report January–June 2025: New strategy period aiming for international growth has begun

January−June 2025 in brief

• Cash and cash equivalents at the end of the period EUR 12.7 million (24.2)
• Other operating income EUR 4.3 million (2.9), consisting of grants.
• Operating loss EUR 4.8 million (4.4)
• Loss for the period 5.4 million (5.7)
• Cashflow from investments EUR 0.4 million (-4.5), with grant payments related to 2024 exceeding investments in H1 2025.
• Loss per share EUR -0.22 (-0.24)
• Order book EUR 1.5 million (0)

Significant events in January-June 2025

• The company announced it has signed a supply agreement of EUR 1,3 million with Superb Food in the United States in March, and a conditional supply agreement of EUR 0,2 million with the Italian KelpEat in May.
• In March, the company announced it has signed two Memorandums of Understanding regarding commercialisation of 6,000 tonnes of Solein per year. Should the collaboration lead to binding agreements, the total volume commitment would correspond to approximately 50% of the full production capacity of Factory 02, now in its pre-engineering phase.
• Rami Jokela started as the company’s CEO and member of the management team 1.4.2025.
• In February, the company begun the pre-engineering of its first industrial-scale Solein® production facility, Factory 02, in collaboration with Blue Projects.
• In March, Solar Foods announced it is exploring the option of constructing not only Factory 02 but also Factories 03 and 04 at the same location. This would be Europe’s single largest emission reduction moonshot project.
• In February, Business Finland granted funding for Solar Foods amounting to EUR 10 million, related to the company’s IPCEI (Important Projects of Common European Interest) notification approved by the European Commission, for the research, development and go-to-market for Solein. Business Finland pays the grants to Solar Foods against approved cost reports. By 30.6.2025, the company has been granted a funding decision amounting to EUR 44 million, from which the company has received EUR 19 million in payments. The remaining EUR 25 million has not been received yet. The remaining funds under the EUR 110 million IPCEI notification, for which the company does not yet have a funding decision, amount to approximately EUR 66 million and are intended to partially cover the costs for the construction of the company's Factory 02.
• In March, the Japanese food company The Ajinomoto Group launched new Solein-containing products in Singapore.
• Customers presented Solein-containing products: KelpEat, the pioneering Italian food innovator dedicated to revolutionizing sustainable nutrition, introduced a Solein-powered high-protein snack in the Pitti Taste food fair in Florence in February. The Finnish food company Fazer introduced Solein-powered products in the Future Food-Tech event in the United States in March.
• As a part of the company’s concept sales model, Solar Foods introduced its first own product concepts of a protein bar and a protein shake made with Solein in spring 2025.
• The company addressed inquiries from the European Food Safety Authority (EFSA) regarding the scientific opinion on the safety of Solein, which brings the company one step closer to introducing Solein to the European market.
• In May, Solar Foods confirmed successful 100-fold industrial scaling of Solein's production technology. Factory 01 has now achieved a productivity of 0.8 g/l/h and an energy efficiency value (O2/CO2) of 2.7.

Significant events after the review period

• Solar Foods partnered with American flavour house Sensapure Flavors to showcase Solein's suitability for endless flavour combinations. The companies showcased product concepts made with Solein at the IFT FIRST event in Chicago in July.
• In July, Solar Foods signed a Letter of Intent regarding commercialisation of 500–1,650 tonnes of Solein per year.
• The Japanese food company Ajinomoto introduced an ice cream made with Solein in connection with the World Aquatics Championships – Singapore 2025 in July.
• In August, Solar Foods refined the implementation of its strategy and the plan concerning the implementation of Factory 02 and estimated the total capital requirement.
• In August, Solar Foods and the City of Lappeenranta, Finland, announced they are preparing an agreement to reserve a site for the preliminary studies related to Factory 02. The company is also researching other potential locations for Factory 02.
• Solar Foods published changes to the responsibilities and composition of the Management Team, and will initiate change negotiations on 25 August 2025 to restructure the organisation.

Key figures

CEO Rami Jokela: The new strategy period has begun, and the company has entered the international growth phase

At the beginning of the year, Solar Foods started a new strategy period with the aim of international growth. The strategy phase will guide the company until 2030 and focus on the commercialization of Solein first in the Health and Performance nutrition category, and scaling up production at both the existing production facility Factory 01 as well as the future Factory 02.

During the first months of the review period, the company laid a solid foundation for international growth: at the beginning of the year, Solar Foods started the pre-engineering of the industrial-scale Solein production plant, Factory 02. The company also signed significant Memorandums of Understanding for the commercialisation of a total of 6,000 tonnes of Solein production per year. If the collaboration, together with a Letter of Intent signed in July after the review period, leads to binding agreements, the total volume would correspond to 50–60% of Factory 02’s full production capacity of 12,800 tonnes. Therefore, we are now exploring the option of building not only one but three facilities, Factories 02, 03 and 04, at the same location. If Solein were to replace beef in the food system, the three factories would enable a greenhouse gas emission reduction as substitution benefit in the order of 10 million tonnes CO2 equivalent per year. This is equivalent to approximately 25% of Finland's annual emissions in 2023, or almost at par with Finland's annual road transport emissions (9Mt). We are currently preparing an implementation plan for a location in Lappeenranta that fulfils the requirements and is quickly executable, and the final decision on the location of Factory 02 will be made by the end of 2025. The investment decision is expected to be made during 2026.

As the company has shifted from a technical innovation to a commercial operator, it has also required new kinds of expertise. Among other things, we have strengthened our sales organization in the United States and made internal organizational changes to better reflect our strategic goals. During the review period, we also signed our first supply agreements in the United States with Superb Food and Kelpeat.

During the spring, we participated in various industry events in the United States, and met with customers especially in the Health & Performance Nutrition category. We initiated product and business development cooperations with partners. In the United States, the Health & Performance nutrition market has grown rapidly over 10% on annual basis, which reinforces the company’s chosen strategic direction to focus on the Health & Performance nutrition segment in the first phase of commercialisation. Solein has also proven to excel in the category’s products.

The company estimates that the target market will continue to grow in the future. The global supply restraint of protein, and especially whey protein, offers Solein an immediate growth opportunity. Solein offers customers a functional, versatile and nutrient-rich ingredient, which can be produced all year round more efficiently and with a lower environmental impact than traditional production methods.

In its sales, Solar Foods utilizes a concept sales model which focuses on products made with Solein developed by the company. The products meet the needs of customers and consumers and accelerate sales cycles. Over the past year the company has conducted customer and consumer studies that show that Solein is able to provide customers with significant added value in terms of its flavour profile, functionality, nutritional content and sustainability. Solar Foods aims to strengthen its value proposition in the competitive protein market by further developing these properties.

After the half-year review period we have reviewed our strategy, and the main outlines of our strategy will remain the same. During our strategy period aiming for international growth, our three most important focus areas are sales, increasing production capacity by implementing the Factory 02 production facility, and implementation of our investment program with for example international, strategic investors.

During the current strategy period, Solar Foods aims to sell the capacity of Factory 01 and secure sales agreements for the production capacity of Factory 02. The company will focus even more strongly on especially companies in the Health & Performance nutrition category, as well as international CPG companies (consumer packaged goods) and entering into strategic partnerships with them.

We have also refined the plans for the construction of Factory 02. Factory 02 is planned to be constructed in phases, ensuring an efficient cost structure and optimized unit economics. All the phases are estimated to achieve positive cash flow, and with the production parameters now achieved at Factory 01, Factory 02 would be profitable. We will continue to develop the parameters even further to achieve higher productivity and better energy efficiency for example through utilising AI and machine learning with leading partners. We will also concentrate on building a network of partners around us that supports us in achieving our goals and enables a lower equity requirement. We will also reorganise our organisation structure to utilise our personnel’s unique knowhow about building Factory 01, and to focus those skills to planning and effectively implementing Factory 02. This reorganization will also serve to reinforce our Go-to-Market organization.

During the review period, Solar Foods has built a solid foundation for achieving international growth, and we expect the first products to be available to consumers in the United States during the second half of 2025. We will continue to support our customers in product development to bring new products to the market not only in the United States but also in Europe, where we expect novel food approval during 2026. In addition to EU, we have also applied for regulatory approval in the UK.

I would like to thank both the unique team of Solar Foods as well as all our stakeholders for the welcome I have received as the company's new CEO. It has been very inspiring to join a completely new kind of company with exceptional global interest. Solar Foods is a true pioneer in bringing gas fermentation to the food industry and utilizing it to achieve profitable business. Our goal is ambitious: we offer a superior source of protein, and we want to revolutionize food production.

Webcast

CEO Rami Jokela and CFO Ilkka Saura will present the main points of the report in a live webcast on 14 August 2025 at 11:00 EEST. The event is in English and can be followed at https://solarfoods.events.inderes.com/h1-2025

Participants can ask questions during the webcast via the chat function of the video platform. A recording of the event will be published afterward on the company’s website at www.investors.solarfoods.com/en/.

This release is a summary of Solar Foods Oyj's 2025 half-year report. The full half-year report is attached to this company announcement as a pdf file and is also available on the company's website at www.investors.solarfoods.com/

Solar Foods Oyj

Board of Directors

Additional information:

CEO Rami Jokela, rami.jokela@solarfoods.com, tel. +358 10 579 3288

CFO Ilkka Saura, Ilkka.saura@solarfoods.com, tel. +358 10 579 3289

Certified Advisor
DNB Carnegie Investment Bank AB (publ)

About Solar Foods
Solar Foods produces Solein®, a protein created using carbon dioxide and electricity. This innovative production method is independent of weather and climate conditions, eliminating the need for traditional agriculture. Founded in Finland in 2017, Solar Foods is listed on the Nasdaq First North Growth Market Finland. Learn more at http://www.solarfoods.com and investors.solarfoods.com

AttachmentsSolar Foods half-year report 2025.pdf