NEW TECH FOODS

Estonian food-tech start-up Äio has announced the successful completion of its first full-scale production run of its sustainable yeast-based oil, reaching a volume of 1 tonne.

This volume represents a 300-fold increase from the company’s laboratory capabilities. The production run, completed between late 2024 and mid-2025, marks a key milestone in Äio’s mission to address the growing demand for more natural, sustainable alternatives to environmentally polluting and potentially harmful food ingredients.

The start-up uses biomass and precision fermentation to transform industrial side streams into nutrient-rich oils and fats. Its encapsulated oil is high in protein, fibre and functional lipids, offering a nutritious and sustainable alternative to ingredients such as palm and coconut oil, eggs and even cocoa powder.

In food applications, the yeast-based oil can deliver a natural umami flavour and versatile texture profile, enabling its use in a wide range of products such as plant-based meat and confectionery.

Reports indicate that palm oil cultivation drives approximately 10% of global deforestation. Additionally, the World Wildlife Fund reported that current food production systems have contributed to a 70% decline in terrestrial biodiversity since 1970, highlighting the need for solutions that can reduce the sector’s environmental footprint.

Nemailla Bonturi, Äio’s CEO and co-founder, said: “As a scientist, I’ve been developing this fermentation process since 2013. Seeing something that I started in a small lab in Brazil now being produced at this scale in Europe is incredibly rewarding.”

Bonturi added: “This first tonne is the first of many to come, and crucially, it proves our process can scale beyond pilot settings and validates the commercial potential we’re working toward”.

The company is now preparing for its next major goal: establishing a commercial production facility capable of producing 2,000 tonnes annually. Äio has completed pre-engineering concept work for this and is now developing partnerships with companies involving feedstock supply, distribution and off-take agreements.

Äio has begun sharing product samples with manufacturers in both food and personal care, and plans to launch a fundraising round by late 2026 to accelerate its expansion within the alt-fats and oils market.

Martin Mets, CFO at Äio, revealed that the company has already reduced its unit costs by 80% in recent years, through scale and optimisation, and expects to see a similar cost reduction curve continue in the years ahead.

Bonturi commented: “The fundamental economics have shifted. Five years ago, sustainable alternatives carried a significant price premium. Today, supply chain disruptions and regulatory pressures have created conditions where precision fermentation can achieve cost parity with conventional oils while eliminating environmental and ethical concerns.”

“For manufacturers, ecologically conscious ingredients are no longer a ‘nice-to-have,’ they’re a necessity… We’re now showing that the commercial viability for plant-based alternatives to traditional oils is very real.”