Tallinn-based biotech startup ÄIO, which produces sustainable, non-animal fats and oils from recycled biomass using locally sourced by-products, has secured €6.1 million to build a demo plant in Estonia for producing environmentally friendly oils and fats from wood and agricultural residue. The funding was provided by Voima Ventures, 2C Ventures, SmartCap, and Nordic Foodtech VC.
- Founded in 2022 by Nemailla Bonturi and Petri-Jaan Lahtvee as a spin-off from Tallinn University of Technology (TalTech), ÄIO emerged with the mission to revolutionize the production of sustainable fats and oils.
- ÄIO uses a unique fermentation process with specialized yeast to transform wood and agricultural by-products, like sawdust sugars, into sustainable fats and oils. The startup has over 120 partners from Estonia and abroad who supply them with industrial by-products and help test their oils and fats.
“ÄIO’s oils, produced from industrial residues, help reduce land use by up to 97% and water consumption by as much as 10 times compared to current palm oil and animal fat production. Additionally, the speed of oil and fat production through fermentation is 10 times faster,” Co-founder of ÄIO, Nemailla Bonturi, commented.
- The company employs a team of 16 and focuses on developing three main products: encapsulated oil, red oil, and butter fats. These can serve as alternatives to commonly used palm oil in the food industry, while their branded Red Oil is also suitable for cosmetics and household products.
Details of the deal
- The funding round was backed by Helsinki-based Voima Ventures, a venture capital firm that invests in tech startups by combining science-driven innovation with entrepreneurial expertise and a global perspective. It also received support from 2C Ventures, a cleantech VC, Harjumaa-based SmartCap, and Nordic Foodtech VC.
“By backing ÄIO, we not only address waste reduction but also provide eco-friendly alternatives for various industries to reduce dependence on traditional raw materials," Fund manager at SmartCap Green Fund, Sille Pettai, commented.
- With new investments, ÄIO plans to build a demo plant in Estonia to produce encapsulated oil, red oil, and butter fats in large quantities by 2026. The plant is likely to be located near a major industrial company, sourcing raw materials from food industry partners in Estonia and Finland.
