Translation: Original published in Finnish on 10/21/2025 at 07:47 am EEST

The news is positive, as it confirms the assumption of Solein production scaling up on a larger scale. The improvement achieved with Solar Foods' current production capacity has a limited impact on the company's potential revenue or margin, but for the industrial-scale Factory 02, the ability to prove the scalability of Solein production plays a critical role in the investment case. Monday's press release was expected, as we estimated the achievement of the 01 plant's 160-ton production capacity, and as a result, the news causes no need for revisions to our estimates for the coming years.  

Production ramp-up is proceeding as expected 

Solar Foods announced on Monday that the company's Factory 01 demonstration plant has achieved its planned productivity targets. This allows the plant to operate at a full annual capacity of 160 tons. The company also stated that it plans to increase the factory's capacity to 230 tons during 2026.

According to the release, Factory 01 has now reached a productivity of 1 g/l/h and an energy efficiency value (O2/CO2) of 2.7. These production parameters enable the plant to operate at its full design capacity of 160 tons of Solein annually. Achieving the targets was expected, and Solar Foods has previously achieved a productivity of up to 1.6 g/l/h with its smaller-scale pilot plant. However, achieving higher productivity figures at a hundred times larger scale in the demonstration plant is an important indication of production scalability and, in our view, decreases the risk associated with the planned industrial-scale Factory 02. During 2026, Solar Foods plans to take into use productivity improvements achieved at pilot scale at the Factory 01 production facility, which would enable the capacity of the 01 production facility to be increased from 160 tons to 230 tons per year. We believe that improved productivity at Factory 01 could generate positive interest among potential partners for an industrial-scale Factory 02 investment. 

The Factory 02 project still at the core of the investment case

Solar Foods' planned increase in production capacity to 230 tons is a positive development, but its direct financial impact is small for the company's overall picture and investment case due to the very limited production capacity. Thus, the investment case continues to focus on securing financing for the Factory 02 project and negotiating binding customer agreements for the factory's future capacity.