Estonian biotechnology firm ÄIO has received €1.2 million in funding from Enterprise Estonia to further develop its yeast-based Flavoured Fat ingredient through the FERM-OIL project. This project aims to scale up production of the lipid-rich yeast biomass as a sustainable alternative to animal fats and imported tropical oils in food production. ÄIO is working on transitioning the Flavoured Fat from lab-scale development to industrial manufacturing, with a focus on scaling the fermentation process, validating feedstocks, and testing the ingredient in industrial settings.

The FERM-OIL project will also involve application trials across various food categories, including bakery, savory, and beverage applications. ÄIO aims to achieve Technology Readiness Level 6 by the end of the project, demonstrating the feasibility of producing next-generation lipids on an industrial scale. The company has raised significant funding from various sources, including grants from the EU and Estonia, and plans to use the data and validation from the FERM-OIL project to support future investments in production facilities and licensing agreements for its fermentation technology.