Dutch Mycoprotein Startup Secures €2.3 Million EU Grant for Dairy Alternative Ingredients
- Gauri Khanna
- 2 hours ago
- 3 min read
Too long to read? Go for the highlights below.
The Protein Brewery received €2.3 million from the EU LIFE Programme to commercialise Fermotein, a mycoprotein ingredient targeting dairy alternatives
The fungal protein yields 26 times more protein than meat whilst using 1% of the land, 5% of the water, and generating 3% of the emissions compared to beef
Fermotein has received regulatory approval in Singapore and the United States, with EU market entry pending following positive assessment from the European Food Safety Authority
Alternative protein companies face a persistent challenge: creating products that match conventional dairy on nutrition, taste, and affordability whilst delivering environmental benefits. Dutch startup The Protein Brewery has secured €2.3 million in EU funding to demonstrate its fungal fermentation technology can address this gap in the dairy alternatives sector.
Extremophilic Fungi for Food Production
The grant from the EU LIFE Programme (the bloc's climate action funding instrument) will support commercialisation of Fermotein, a mycoprotein ingredient derived from Rhizomucor pusillus. This extremophilic fungus thrives in harsh conditions including low pH and high temperatures, characteristics that simplify industrial fermentation processes by reducing contamination risks.
The production method involves growing the fungus in fermentation tanks, then sieving, pasteurising, and drying the resulting biomass before milling to desired particle sizes. The company operates a pilot plant in Mijkenbroek, Breda, with current capacity of 100 kilogrammes daily; modest output reflecting the technology's pre-commercial stage.
Chief technology officer Gilbert Verschelling stated the grant will tremendously accelerate scaling of Fermotein, significantly contributing to improving sustainability and nutrition in the dairy alternative market. The funding specifically targets applications in non-dairy milks and yoghurts, requiring optimisation of fermentation parameters to meet functional requirements for these products.
Nutritional Profile and Environmental Footprint
Fermotein's specifications highlight both opportunities and market positioning challenges. The ingredient contains complete amino acid profiles with yields reportedly 26 times greater than meat, five times greater than soya, and four times greater than peas on a per-unit basis. It provides prebiotic fibre and essential micronutrients: components often lacking in plant-based alternatives.
Environmental metrics show substantial improvements over conventional protein sources. Compared to beef production, Fermotein requires 1% of land area, 5% of water consumption, and generates 3% of greenhouse gas emissions. These figures, if verified through independent lifecycle assessment, would represent meaningful reductions in agricultural resource intensity.
Chief financial officer Jan Hendrik Van Gilst characterised the funding as strengthening the company's mission to futureproof non-animal proteins through innovative fungal fermentation technology, delivering ingredients combining nutrition, taste, and reduced environmental footprint.
Regulatory Progress and Market Development
The company has secured regulatory approval in Singapore and the United States. In late 2025, the European Food Safety Authority issued a positive opinion on Fermotein—the penultimate step before EU market authorisation. This timeline positions the ingredient for European commercial availability during 2026, subject to final administrative procedures.
The Protein Brewery recently received an additional €570,000 grant from EIT Food, an EU-backed accelerator, alongside consortium partners including Nizo Food Research, Wageningen Food & Biobased Research, and an unnamed international food company. This project focuses on health and wellness applications beyond dairy alternatives.
The startup has raised approximately $60 million in total funding, including a $35 million Series B round in September 2025. Notably, investors included Novo Holdings, parent company of pharmaceutical manufacturer Novo Nordisk. The Protein Brewery is exploring Fermotein's potential as a natural GLP-1 booster: compounds that regulate appetite and blood sugar, currently generating substantial pharmaceutical and food industry interest.
Commercial Partnerships and Scaling Challenges
The company collaborates with manufacturers including Nepra Foods and CK Ingredients to bring Fermotein to North American and European markets. Applications extend beyond dairy alternatives to active nutrition products, better-for-you snacking, protein drinks, nutrition bars, and protein-enriched baked goods.
Chief executive Thijs Bosch stated the company anticipated significant revenue growth in 2026 and capacity expansion requirements. Whether this optimism proves justified depends on multiple factors: finalising EU regulatory approval, demonstrating cost competitiveness against established proteins, achieving consumer acceptance in dairy alternatives, and scaling production beyond pilot plant volumes. The €2.3 million grant provides capital for addressing these challenges, though substantial commercial hurdles remain before fungal proteins capture meaningful market share.
