Tehnopol welcomes biotech startup ÄIO and its innovative fat production technology

The Tehnopol Science and Business Park welcomes ÄIO, a TalTech spin-off company, who recently moved to Tehnopol campus. ÄIO uses specialised yeast to produce fats, which can replace palm or coconut fat in food products and cosmetics.

The co-founders of ÄIO are TalTech researchers Nemailla Bonturi (from Brazil) and Petri-Jaan Lahtvee, whose team has grown into a highly international group in less than three years. Currently, nearly 20 experts from Estonia, Brazil, Italy, Poland, Armenia, and India work at ÄIO. The company provides scientists with an excellent opportunity to apply their skills and knowledge to develop innovative and sustainable fats.

The yeast used by ÄIO differs from other yeasts; for example, while beer yeasts produce alcohol, ÄIO’s yeast creates fats suitable for the food and cosmetics industries. One of the key ingredients the yeast needs to grow is sugar. Unlike many other types of yeast, ÄIO’s yeast can use sugars derived from sources such as processed sawdust (wood sugar). Sugars from other sources, like bakery or dairy industry residues, also work well.

Currently, ÄIO is actively engaged in research and development. The company can only provide small quantities of its fats to partner companies for testing. In rare cases, products containing ÄIO’s fats can be sampled in the lab, but the company cannot yet sell its product. The fats are classified as a novel food, requiring authorisation from the European Food Safety Authority (EFSA) before they can be marketed. ÄIO has actively started the approval process, a lengthy bureaucratic procedure. If successful, ÄIO would become the first Estonian company to reach this milestone, and the team is working hard to achieve this important goal.

A promising solution with a small environmental footprint

The new type of fats can be used in food production as well as in beauty and household products. Essentially, ÄIO’s yeast-derived fats can be used in any product currently containing palm or coconut oil.

Unlike palm or coconut oil producers, ÄIO’s production process is sustainable. Their method requires significantly less land and water, and production is much faster. The yeast grows and produces fats in a controlled, stable environment, taking just a week to yield a certain quantity of fats. This is also a key factor for global food security.

Globally, around 20 companies produce fats similar to those developed by ÄIO, but the company is unique in Estonia. Since palm and coconut oil producers dominate the market, smaller development teams like ÄIO tend to collaborate rather than compete, aiming to improve and scale up their products and processes efficiently and cost-effectively.

Currently, ÄIO operates on a pilot scale in its laboratory and is working on building a demo plant to eventually compete with palm and coconut oil producers. Once novel food approval is granted and partner feedback is positive, there will be many companies ready to replace traditional fats in their products with ÄIO’s sustainable alternatives.

A demo plant for industrial residue utilisation

This autumn, ÄIO raised €6.1 million from investors to construct a demo plant. This plant will prove that similar facilities can be built next to larger industrial plants generating sugar-containing residues suitable for yeast growth.

Several companies have already expressed interest in ÄIO’s fats. For instance, Fibenol processes sawdust, which can be used by ÄIO’s technology to produce fats. ÄIO is in contact with around 100 industries, food producers, and cosmetics companies aiming to replace traditional fats in their products with more environmentally friendly options.

ÄIO plans to continue growing as a company. Following the recent investment round, preparations for the next round are already underway to harness the company’s potential, growth opportunities, and market position. Recently, it was also announced that ÄIO received €192,000 from the Environmental Investment Centre for pilot production of biotechnological fats. With the construction of the demo plant and the company’s expansion, ÄIO’s team is also set to grow.

We are delighted to welcome ÄIO to Tehnopol!