Scaling Up Sustainably: Inside Millow’s First Factory and the Future of Mycelium Protein
- Marc Violo
- 14 hours ago
- 3 min read
Swedish food tech startup Millow is entering a new phase of growth, bringing its oat-and-mycelium protein to industrial scale. Built on decades of academic research and powered by a unique dry-state fermentation technology, Millow is repurposing a former LEGO production hall outside Gothenburg to launch its first full-scale factory.
From Prototype to Production: A Modular Approach
Each of Millow’s proprietary bioreactors—called S-units—can produce up to 500 kg of protein per day, equivalent to around 150 tonnes per year. The company will begin commercialisation with one operational unit while scaling to three S-units by 2026, enabling a total production capacity of 450 tonnes annually.
Rather than building new infrastructure, Millow retrofitted a 25,000 sq m facility, avoiding an estimated 1,400 tonnes of embedded CO2 emissions. The new factory will serve as the company’s launch pad for foodservice and retail products starting in Sweden and the Nordic region.
How It Works: A Smarter Way to Grow Protein
Millow’s process combines Nordic oats with fungal spores in a patented dry fermentation system. In just 12–16 hours, the fungi metabolise the starch, transforming the substrate into a nutrient-rich, meat-like matrix. Each unit functions like a high-tech fermentation chamber: a hybrid between solid-state and submerged fermentation, offering greater efficiency at a fraction of the cost.
The system uses just 2.3% of the water and one-third of the energy compared to traditional wet fermentation. It’s also modular, meaning Millow can scale quickly while maintaining consistency and redundancy across production lines.
“We looked at wet fermentation in steel vats and asked: can we do this better?” says CEO Esmaeil Taherzadeh. “Our system is highly automated and incredibly resource-efficient.”
Products Without Compromise
Millow’s current product line includes: Minced meat, Chicken-like bites, Döner kebab, Paneer-style dairy alternatives and Swedish meatballs. These offerings contain 27g of complete protein per 100g serving, along with fibre, vitamins, and minerals—all from just two ingredients: oats and mycelium. There are no additives, no binders, and no ultra-processed shortcuts.
The texture is firm and juicy, designed to hold up under cooking, even in stews or high-heat ovens. The fermentation process also reduces anti-nutrients like phytic acid, improving the bioavailability of iron and zinc—key nutrients often lacking in plant-based diets.
Ready for Market
Millow is finalising distribution agreements with foodservice operators and will expand into retail with partners as supply ramps up. The firm is also exploring hybrid product collaborations where its protein is blended with meat to reduce environmental impact.
As part of its brand strategy, Millow is launching the “Made with Millow” label. Created with design input from Rob Janoff—the designer of the Apple logo—it will signal clean-label transparency to both consumers and co-branding partners.
Financing the Future
Millow’s initial production is backed by a €2.4M grant from the European Innovation Council Accelerator and up to €15M in blended finance from the EIC Fund. The company has also received €643,000 as part of a €4M Horizon grant consortium.
Future expansions will combine debt and equity financing, supported by ongoing discussions with private investors and the European Investment Bank.
A Category of Its Own
Millow is often compared to tempeh or mycelium-based analogues like Quorn—but its founders say the similarities are only skin-deep. Millow’s fermentation approach, ingredient simplicity, and clean-label profile distinguish it from most players in the space.
"We’re not an ingredient supplier. We’re delivering whole food solutions," says chairman Dr. Staffan Hillberg. "Our products are minimally processed, nutrient-dense, and built for industrial scalability. We’re confident this platform can address the biggest concerns in alternative protein: taste, transparency, and cost."
With its first S-unit now online and more to come, Millow is moving quickly—but deliberately—towards a protein future that’s local, clean, and efficient.