Promising new development for the alternative protein sector: Danish startup Matr Foods has secured a €20 million loan from the European Investment Bank (EIB) to scale up its mycelium-based meat production. This investment marks a significant milestone, as it's reportedly the first time the EIB has backed a plant-based meat company [1].
Mycelium: The Unsung Hero of Sustainable Protein
Mycelium, the vegetative part of fungi consisting of a network of fine white filaments, has been quietly revolutionising the food industry. Its ability to mimic the texture and nutritional profile of meat, coupled with its sustainability credentials, has positioned it as a formidable player in the alternative protein market.
Matr Foods, founded in 2021 by a team including former Arla executive Randi Wahlsten and Noma co-founder Claus Meyer, has been at the forefront of this mycelium revolution. The company's innovative approach uses solid-state fermentation to transform upcycled ingredients into meat analogues that are not only tasty but also environmentally friendly.
Scaling Up: From Pilot to Powerhouse
Currently operating from a pilot plant producing 30-40 tonnes annually, Matr Foods is set to significantly expand its operations. The €20 million EIB loan will facilitate the construction of a commercial-scale factory, scheduled to open in 2026. This new facility aims to boost production to over 3,000 tonnes of clean-label meat analogues per year – a hundredfold increase [2].
"This expansion isn't just about increasing volume; it's about scaling impact," says Randi Wahlsten, CEO of Matr Foods. "We're creating products that not only taste great but also address critical environmental and health challenges."
The Science Behind the Flavour
Matr Foods' process is a testament to the power of biotechnology. By inoculating upcycled ingredients like beetroots, potatoes, and legumes with fungal spores, they create a nutrient-rich environment for mycelium growth. The resulting network of hyphae – tiny fungal threads – breaks down these ingredients, releasing flavour-packed amino acids and starches.
This natural process not only enhances taste but also improves texture, creating a meat-like consistency that has been well-received by chefs and consumers alike. The company's products boast impressive nutritional profiles, with 2.5g of fat (0.5g saturated) and 10g of dietary fibre per serving – a significant improvement over some plant-based competitors [3].
Environmental Impact: A Fungal Footprint
The environmental benefits of Matr Foods' mycelium products are striking. According to the company, their meat analogues generate just 1.6kg of CO2e per kg – a 94% reduction compared to beef. The EIB estimates that at full production capacity, Matr Foods could help reduce the environmental impact of European meals by more than 100,000 tonnes of CO2e per year [4].
This aligns perfectly with the EU's Farm to Fork strategy and bioeconomy goals under the EU Green Deal, which aims to achieve net-zero emissions by 2050.
The Investment Landscape: Fermenting Fortune
The EIB's investment in Matr Foods is part of a broader trend. Fermentation companies have become increasingly attractive to investors, raising more capital in the first half of 2024 than in all of 2023. In fact, they've secured twice as much funding as plant-based companies and over three times more than cultivated meat startups [5].
Christian Poppe, public affairs and sustainability director at German food tech company Formo, attributes this investor interest to fermentation's scalability and potential for rapid consumer acceptance. "Because it's not entirely new to consumers, it holds great promise for rapid consumer acceptance and uptake," Poppe explains, referencing fermentation's ancient roots in food production [6].
Looking Ahead: The Mycelium Momentum
As Matr Foods prepares to scale up its operations, the future of mycelium-based proteins looks promising. With its unique combination of taste, texture, and sustainability, mycelium could play a crucial role in addressing global food security and environmental challenges.
The EIB's support for Matr Foods signals a growing recognition of the potential of alternative proteins in Europe. As Denmark leads the way with its national action plan to transition to a plant-based food system, including a focus on vegan school meals and increased R&D investment, we may be witnessing the early stages of a fungal-fueled food revolution [7].
In the words of EIB vice-president Ioannis Tsakiris, "Plant-based meat alternatives not only have high potential for growth, but also bring environmental and health benefits." As Matr Foods and other mycelium pioneers continue to innovate, they're not just creating new foods – they're cultivating a more sustainable future.
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