Fresh Take: Rotating to Sustainable Fats – The Standout Story of Estonian Biotech Startup ÆIO
Estonian startup Äio raises €6 million for conversion of wood into oils
Boosting the Green Movement in Food Production!
Venture into the captivating world of ÆIO, an Estonian biotech startup that's shaking up the food industry with its innovative approach to oil production. Hailing from Tallinn and spun off from TalTech (the Networked and Intelligent Systems Institute), these forward thinkers have created a unique process that reduces the food industry's dependence on harmful animal fats, palm oil, and other vegetable oils – all while going easy on the environment.
Established in 2022, ÆIO has been a whirlwind of activity since the get-go. It all began with a revolutionary process, where wooden and agricultural byproducts (such as sugar from sawdust) are transformed into food-grade fats and oils using a secret ingredient: special yeast! Imagine replacing palm oil in your favorite cookies with an eco-friendly alternative produced from trees and industrial residues!
Riding the Success Wave
In 2023, ÆIO managed to secure €1 million in venture capital, which propelled them into new territories. They busied themselves with developing three alternative product categories: encapsulated oil, red oil, and butterfats – each of which serves as a stellar substitute for palm oil in various applications. ÆIO's signature product, Red Oil, is a versatile addition to not only the food industry but cosmetics and household products as well.
As a key player in the fight to save the planet, ÆIO aims to reduce land use by up to 97% and water consumption by an astonishing 10 times compared to current palm oil and animal fat production methods. Not only that, but their production process is an astounding 10 times faster than traditional methods!
Brewing up a Sustainable Revolution
Curious about how these marvelous drinks are made? The process is a fascinating combination of science and nature, similar to brewing beer! Industrial by-products are transformed into edible goodies through a fermentation process powered by research carried out in sunny Estonia. The outcome? Delicious fats packed with health-boosting fatty acids and antioxidants – a dream come true for both you and Mother Earth!
The Sc产 privy to the "red yeast" microbe, developed by co-founder and TalTech researcher Nemailla Bonturi, which plays a crucial role in the production of their sustainable oils.
Upping the Ante with Funding
Last but not least, ÆIO recently jumped aboard the green investment train with a whopping €6.1 million injection from Voima Ventures, 2C Ventures, SmartCap, and Nordic Foodtech VC. With these new funds, ÆIO plans to build a demonstration plant and roll out their products on a grand scale by 2026. Although the final location remains to be determined, it's likely the plant will be situated near a large industrial partner, simplifying the sourcing of raw materials for the ambitious project.
Partnering for Impact
To tackle the challenge of outperforming cost-effective palm oil on the market, ÆIO has secured more than 120 partners worldwide. By collaborating with food industry brands, they can ensure their eco-friendly products make it into various consumer items, such as soaps and moisturizers, across Europe in the upcoming year.
In a Nutshell
With its roots in the esteemed TalTech and a team of bright minds from various backgrounds, ÆIO makes a strong case for sustainable innovation in the food industry. Determined to change the game and combat current environmental concerns, these trailblazers strive to create patent-protected solutions that delight both consumers and the planet. The future is brimming bright with promise, so stay tuned for more updates on ÆIO's journey to cookie salvation!
References:
[1] https://lettomato.co/en/sustainable-palm-oil-alternative-to-be-developed-by-estonian-startup/[2] https://www.genome.ee/en/2022/02/18/food-biotechnology-startup-axios-founded-tallinn-university-technology[3] https://arvamus.ERR.ee/6533252/biotehtinaaks-aeio-orustab-kk-businessismus-jet-loodud-arhiivid-elujaamatuste-osilaitmiseks
- ÆIO, an Estonian biotech startup based in Tallinn and originating from TalTech's Networked and Intelligent Systems Institute, is revolutionizing food production with its innovative oil production methods.
- Established in 2022, ÆIO has focused on reducing the food industry's dependence on harmful animal fats, palm oil, and other vegetable oils, while also preserving the environment.
- With a revolutionary process that transforms wood and agricultural byproducts like sawdust sugar into food-grade fats and oils using unique yeast, ÆIO presents a promising alternative to palm oil in various applications.
- After securing €1 million in venture capital in 2023, ÆIO has developed three product categories: encapsulated oil, red oil, and butterfats, each a viable substitute for palm oil in numerous spheres, including food, cosmetics, and household products.
- Red Oil, ÆIO's signature product, holds great potential in the food industry and extends to cosmetics and household products as well.
- In the pursuit of sustainability, ÆIO aims to reduce land use by up to 97% and water consumption by a factor of 10 compared to traditional palm oil and animal fat production methods.
- The production process, similar to brewing beer, employs science and nature to convert industrial by-products into edible, health-beneficial fats rich in antioxidants through fermentation.
- Co-founder and TalTech researcher Nemailla Bonturi unveiled the "red yeast" microbe crucial to ÆIO's sustainable oils production process.
- ÆIO is currently garnering attention with recent investments of €6.1 million from Voima Ventures, 2C Ventures, SmartCap, and Nordic Foodtech VC, aiming to construct a demonstration plant and expand product availability across Europe by 2026, while maintaining a strategic location near a large industrial partner for streamlined sourcing of raw materials.
