Investors
Business model
Solar Foods is a technology company that aims to commercialise food raw materials to replace food of animal origin, and the patented technology platform used to produce them, hydrogen fermentation. We aim to produce new food raw materials for the global market using both existing and new microbial strains under development.
Our business model is twofold:
1) invest in Solein’s production capacity and supply protein raw materials to food product manufacturers (B2B)
2) license hydrogen fermentation technology and production organisms for customers supplying raw materials to the food industry.
Two-fold business model
Investment in production capacity and supply to food product manufacturers
The first part of the business model is to supply food product manufacturers with a protein product called Solein, which serves as a raw material for their products. Solein’s pricing is based on its application and other protein options available on the market that customers may consider instead of Solein. Currently, we can only produce Solein in limited quantities. The price is on the same level as whey protein. We have invested over EUR 40 million in a hydrogen fermentation plant, Factory 01, in Vehkala, in Vantaa. The purpose of Factory 01 is to verify the ultimate scalability of our technology.
After the investment phase, we estimate that our commercial factories will generate strong and predictable cash flow, as production is not dependent on long raw material supply chains or their strategic supply risks. In addition, the working capital tied to the process is low.
Licensing of hydrogen fermentation technology
In some regions or product categories, we may not manufacture or sell Solein directly but aim to license our technology to an industrial partner.
Such a partner would be responsible for the construction and operation of the Solein plant and would have the right to sell Solein in certain regions or product categories. In return, we would receive a license fee based on a general percentage of the licensee’s total net sales. Potential partners include, for example, companies supplying raw materials to the food industry.
Customers
Our potential customers are all companies that manufacture and/or sell food products. Potential customers can be divided into five groups:
1) Global CPG companies (consumer packaged goods) and large Health & Performance nutrition companies
2) Small and agile Health & Performance nutrition companies
3) Grocery store chains with own brands or private labels
4) Contract manufacturers of food products
5) Distributors and resellers of food ingredients.
We are currently focusing on global and local food companies that sell food products under their own brands to consumers. These companies, and above all global food companies, are the largest customer segment in terms of potential volume.
The current customer base consists of companies that supply raw materials for the food industry or manufacture and sell food products.
