HYDROCOW and Solar Foods: an EIC-backed push to decouple dairy proteins from agriculture

Brussels, August 21st 2024
Summary
  • HYDROCOW, an EIC Pathfinder-funded project coordinated by Solar Foods, develops a bacterial secretion platform to produce dairy proteins from CO2 using an engineered hydrogen-oxidising microbe.
  • The project has demonstrated production of beta-lactoglobulin and optimised the process through iterative design-build-test-learn cycles.
  • Solar Foods is scaling its gas-fed protein technology with Factory 01 in Vantaa and plans a much larger Factory 02, while pursuing regulatory approvals including a recent self-affirmed GRAS conclusion for the United States.
  • Key uncertainties remain around energy and hydrogen sourcing, lifecycle emissions, regulatory pathways, and industrial scale economics.

HYDROCOW and Solar Foods: rethinking dairy proteins with gas-fed microbes

The HYDROCOW project, funded by the European Innovation Council through its Pathfinder Challenges, is developing a platform to produce dairy proteins without traditional agriculture. Coordinated by Solar Foods, the initiative uses an engineered hydrogen-oxidising bacterium to convert carbon dioxide and in future nitrogen into food-grade protein. The project aims for a net-zero carbon protein production route that could reduce land and water footprints typically associated with milk production.

What HYDROCOW has achieved so far

HYDROCOW reports several technical milestones. The team engineered Xanthobacter sp. SoF1 to secrete a major milk protein, beta-lactoglobulin. They then iterated the production process through a formal design-build-test-learn cycle to improve yields and process stability. Solar Foods positions the platform as a way to broaden its hydrogen fermentation capabilities beyond bulk protein powders to more specialised products, while retaining a lower environmental footprint relative to agriculture.

Beta-lactoglobulin production:Beta-lactoglobulin is a dominant whey protein in bovine milk and a target for anyone trying to reproduce dairy-like functionality. Producing it via microbial secretion means the protein can be harvested from the culture medium, which simplifies downstream processing compared with extracting intracellular proteins.
Design-build-test-learn cycle:DBTL is an iterative engineering approach that combines genetic design, construction of strains, experimental testing, and learning from results to refine subsequent designs. In industrial biotechnology, DBTL is used to optimise yield, secretion, and robustness under process conditions.

Core technology explained

Hydrogen-oxidising bacteria and autotrophy:Hydrogen-oxidising bacteria use molecular hydrogen as an electron donor and fix CO2 as their carbon source. These microbes are autotrophs because they do not require organic carbon feedstocks such as glucose. By combining hydrogen oxidation, CO2 fixation, and engineered genetic pathways for protein expression and secretion, the process decouples protein production from arable land and conventional farming inputs.
Bacterial protein secretion systems:Secretion systems allow target proteins to be transported out of the microbial cell into the fermentation broth. Secreted proteins are easier to purify at scale, reduce costs associated with cell disruption, and can improve product quality. However, achieving high-rate secretion of complex eukaryotic proteins in bacteria is technically challenging and often requires extensive strain engineering and process optimisation.

Solar Foods, Solein and manufacturing scale-up

Solar Foods is best known for Solein, a powder protein ingredient grown by feeding microbes with gases, including CO2, hydrogen and oxygen plus minor nutrients. Factory 01 in Vantaa, Finland began operations in early 2024 and has a target capacity of up to 160 tonnes of Solein per year. The company has publicly discussed plans for a second facility, Factory 02, that would be 50 to 100 times larger and reach commercially profitable scale. Solar Foods has also listed on Nasdaq First North Growth Market Finland under the ticker SFOODS to support global scaling.

Factory 01 and Factory 02 plans:Factory 01 is a demonstration to early-commercial plant sized to produce up to 160 tonnes per year of Solein. Factory 02 is planned to be much larger and to achieve a profitable production scale. Solar Foods expects investment decisions for Factory 02 around 2026 but has not published a detailed capex or timeline sufficient to guarantee delivery.

Regulatory progress and market entry

Solein has secured regulatory headway in certain jurisdictions. Singapore granted novel food approval in 2022. In early September 2024 the company announced a self-affirmed GRAS conclusion in the United States, which it says could allow sales in that market by the end of the year. Solar Foods has ongoing novel food filings in the European Union and the United Kingdom. Alongside regulatory submission efforts the company is negotiating strategic launch and partnership agreements with food and biotech firms to co-develop products for different markets.

GRAS versus novel food approvals:GRAS is a US regulatory concept that allows a company to conclude an ingredient is generally recognised as safe either through independent expert review or a self-affirmation process. Novel food approvals in jurisdictions such as the EU and Singapore are different regulatory routes that involve formal review. Achieving approvals is necessary but not sufficient for commercial success because label rules, claims, and market acceptance still matter.

Why HYDROCOW matters and where claims need scrutiny

HYDROCOW and Solar Foods represent a growing European bet on gas-fed, autotrophic microbial production of proteins. This approach could reduce land and water use and avoid competition with food-grade glucose as a feedstock. The technology also opens possibilities beyond food, including materials and therapeutic proteins. Yet several technical and commercial caveats remain.

Net-zero claims and energy inputs:A net-zero carbon outcome depends on the source of electricity and hydrogen. If hydrogen is produced from renewable electricity via electrolysis and the electricity supply is low carbon, lifecycle emissions can be low. If hydrogen or electricity come from fossil-based sources, the climate benefits can be compromised. A full, peer-reviewed life cycle assessment would be needed to substantiate net-zero claims.
Scale-up and economics:Demonstration of a protein at lab or pilot scale is not proof of cost competitiveness at industrial scale. Challenges include securing low-cost renewable hydrogen, process intensification, downstream purification costs for secreted proteins, and capital investment for facilities. Factory 02 ambitions are large but face typical biotech scale-up risks and capital constraints.
Regulatory and market acceptance risks:Even with regulatory clearances, new food ingredients face consumer acceptance hurdles, labelling rules, and supply chain integration issues. Dairy proteins produced by microbes will need to navigate existing dairy definitions in various markets and possible resistance from incumbent sectors.

Funding, IP and the role of EIC Pathfinder

HYDROCOW is funded by the EIC Pathfinder Challenges programme. Pathfinder supports early-stage, high-risk research that could create new technological trajectories. The EIC backing is an important validation for foundational research. Translating an academic or early commercial demonstration into a regulated, mass-market ingredient requires follow-on capital and clear intellectual property and licensing strategies. Solar Foods has indicated the potential to license hydrogen fermentation technology and engineered organisms to other players in the food industry.

MilestoneDate or statusDetails
EIC Pathfinder funding for HYDROCOWOngoing as of 2024Supports high-risk research to develop secretion system and strain engineering
Demonstrated beta-lactoglobulin secretionReported 2024Produced using engineered Xanthobacter sp. SoF1 in proof-of-concept experiments
Factory 01 starts operationsEarly 2024Vantaa demonstration plant with target 160 tonnes Solein per year
Self-affirmed GRAS for SoleinEarly September 2024Company states an independent GRAS conclusion in the United States; different from formal FDA premarket approval
Listing on Nasdaq First North Growth Market Finland10 September 2024Direct listing under ticker SFOODS to raise profile and capital for scaling
Factory 02 investment decision plannedTarget 2026Planned 50-100 times capacity of Factory 01 according to company statements

Implications for the EU innovation ecosystem

HYDROCOW sits at the intersection of EU ambitions on green tech, circularity and industrial biotechnology. The EIC Pathfinder model is designed to de-risk novel concepts that can be taken up by industry or spun out into startups. If HYDROCOW and Solar Foods achieve scalable, low-carbon protein manufacturing, it could reinforce European leadership in alternative proteins and green biomanufacturing. However, wider policy alignment is important. Support for renewable electricity, electrolytic hydrogen roll-out, and clear novel food regulatory pathways in the EU will influence whether projects like HYDROCOW can move from promising research to commercially viable operations.

Where to watch next

Key indicators to monitor include independent lifecycle assessments of HYDROCOW and Solein production, outcomes of EU and UK novel food filings, the commercial terms and counterparty partners for product launches, and any investment decisions for Factory 02. Technical publications detailing yields, energy consumption per kilogram of protein, and downstream processing costs would also provide stronger evidence for environmental and economic claims.

Conclusion

HYDROCOW advances a technically interesting approach to producing dairy proteins from CO2 via engineered, hydrogen-oxidising microbes. The combination of EIC Pathfinder support and Solar Foods infrastructure including Factory 01 gives the project real momentum. That momentum must still clear typical hurdles for deeptech food ventures. Verifiable lifecycle emissions data, reliable access to low-cost renewable hydrogen, regulatory clearances across jurisdictions, and convincing unit economics are necessary before the project can deliver on wider claims about net-zero dairy protein production at scale.

For more details see Solar Foods and the HYDROCOW project page on CORDIS. The EIC Pathfinder Challenges programme provides funding for high-risk, potentially transformative research in the European innovation landscape.