Estonian biotech ÄIO secures €1.2M grant to scale sustainable lipid production with FERM-OIL project
ÄIO, an Estonian biotechnology company developing sustainable, non-animal fats and oils through innovative fermentation processes, has been awarded a €1.2 million grant from Enterprise Estonia to advance its new project FERM-OIL. Total budget of the project is €2.3 million.
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ÄIO Tech OÜ, founded in 2022 by TalTech bioengineers Petri-Jaan Lahtvee and Nemailla Bonturi, develops a unique method to reduce the food industry’s reliance on harmful animal fats, palm oil, and vegetable oils. The process uses specialised yeast to transform by-products from wood and agricultural processes into food-grade fats and oils.
“We already know that our Flavoured Fat performs beautifully in prototypes, from replacing cocoa powder and brown sugar to adding a silky texture to broths and sauces. This project allows us to validate the process on real industrial lines, generate robust safety data for the novel food dossier, and understand how consumers respond to these new lipid ingredients” says Dr Mary-Liis Kütt, Chief Innovation Officer at ÄIO and lead of the FERM-OIL project.
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ÄIO’s new project, FERM-OIL, aims to scale its Flavoured Fat, a lipid-rich yeast biomass with umami taste, from lab and pilot scale to industrial production. The project will optimize fermentation processes, validate second-generation feedstocks, and gather crucial safety and consumer data.
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By the end, ÄIO seeks to reach TRL6, demonstrating industrial readiness for sustainable lipid ingredients that complement plant-based proteins. The project aligns with ÄIO’s vision to create resilient, circular food systems using local side-streams, reducing dependence on animal fats and tropical oils.
Earlier that year, ÄIO secured €1 million in funding from a grant from the Estonian government-backed Applied Research Programme (RUP).
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https://en.ain.ua/2025/12/19/aio-secures-eur1m-grant/