Finnish biotech startup Enifer is set to revolutionize the alternative protein market with Pekilo, a single-cell fungus-based protein with roots dating back to the 1960s and 1970s. Initially developed by the paper industry to address pollution, Pekilo is now being reimagined for human consumption. This innovative approach offers a sustainable solution to the rising demand for alternative proteins.
Pekilo’s origins are unconventional. Enifer CEO and co-founder Simo Ellilä explains that paper industry engineers were originally seeking a method to mitigate the environmental impact of waste, or “sidestreams,” being dumped into waterways. The breakthrough came when laboratory workers noticed fungus growing on waste left over the weekend, leading to a 15-year development process to commercially grow and harvest the mycoprotein using biorefining and fermentation. Although Pekilo was initially marketed as animal feed, it was primarily intended for wastewater treatment. The practice fell out of use in the early 1990s when the paper industry adopted waste incineration methods, leading to the technology being forgotten.
Ellilä describes the rediscovery of Pekilo as “very actively forgotten,” akin to a relic from a bygone era. “Our founder team were biotech scientists, trained, educated in Finland, and we’d never heard of this thing,” Ellilä told TechCrunch. The turning point came in 2020 when Enifer’s founders, inspired by a retired senior R&D director from Valio dairy company, decided to revive Pekilo. They spun out a company from the VTT Technical Research Centre of Finland with the goal of producing food-grade mycoprotein.
Enifer has now secured substantial funding to bring this vision to life. The startup recently closed a Series B funding round, raising €15 million in equity led by Taaleri Bioindustry Fund I, along with investments from existing shareholders Nordic Foodtech VC, Voima Ventures, and Valio. Additional financial support includes a €7 million junior loan from the Finnish Climate Fund, a €2 million Climate and Environmental Loan from Finnvera, and a €12 million recycling/reuse investment grant from Business Finland. The funds will be used to complete and operationalize Enifer’s first factory in Kirkkonummi, Finland, which is strategically located near the sea to provide cooling water for fermenter tanks.
The factory will be the world’s first commercial plant to produce mycoprotein from food industry sidestreams, transforming waste into high-quality protein. Unlike Quorn, which uses glucose to feed its fungus, Pekilo’s production process exemplifies sustainable biorefining.
Once operational, the factory is expected to produce 500 kilograms of protein per hour. Enifer aims to start ramping up operations in 2026, with full production capacity anticipated within three years. If successful, the company plans to expand with additional factories.