Äio tech OÜ (ÄIO), an Estonian biotechnology company developing sustainable, non-animal fats and non-vegetable oils through innovative precision fermentation processes, has announced that it has completed its first full-scale production run of its encapsulated oil product, reaching a volume of one tonne.
The milestone represents a 300-fold increase from the company’s laboratory capabilities, positioning ÄIO to address the growing demand for more natural alternatives to unsustainable, environmentally polluting, and potentially harmful ingredients that have long been used throughout the cosmetics and food manufacturing industries.
This is not just a production milestone, it’s a validation of a dream. As a scientist, I’ve been developing this fermentation process since 2013. Seeing something that I started in a small lab in Brazil now being produced at this scale in Europe is incredibly rewarding. This first tonne is the first of many to come, and crucially, it proves our process can scale beyond pilot settings and validates the commercial potential we’re working toward, said Nemailla Bonturi, CEO and Co-founder of ÄIO.
Utilizing specialized yeast fermentation, ÄIO’s technology converts sugars extracted from sawdust and other agricultural residues into oils rich in omega-3 fatty acids, antioxidants, and pigments.
According to the company, its encapsulated oil, high in proteins, fibres, and functional lipids, offers a sustainable alternative to traditional palm and coconut oils, animal fats, eggs, and cocoa powder, reducing land use by up to 97 percent and water consumption by a factor of ten compared to conventional methods.
Significant step toward commercial-scale
The one-tonne production milestone marks a significant step in ÄIO’s journey toward commercial-scale manufacturing of its next-generation, ecologically conscious fermentation-derived ingredients for the cosmetics, food, and oleochemical sectors.
In cosmetics formulations, it provides nourishing properties with additional bioactive benefits, acting as a natural alternative to petroleum-derived mineral oils, which can be harmful to the skin and cause environmental pollution.
In food applications, it delivers an umami taste and a versatile texture profile, making it suitable for a wide range of products, from meat-free patties to confectionery.
Mounting pressure to reduce impact
The production run, completed between late 2024 and mid-2025, comes as industries face mounting pressure to reduce environmental impact.
For example, reports indicate that palm oil cultivation accounts for approximately 10 percent of global deforestation, while the World Wildlife Fund (WWF) reports that current food production systems have contributed to a 70 percent decline in terrestrial biodiversity since 1970.
In the cosmetics sector, manufacturers are under increasing pressure to seek natural alternatives to commonly used petrochemical ingredients, compounded by the EU microplastics ban and calls to outlaw per- and polyfluoroalkyl substances (PFAS), aka “forever chemicals”.
The fundamental economics have shifted. Five years ago, sustainable alternatives carried a significant price premium. Today, supply chain disruptions and regulatory pressures have created conditions where precision fermentation can achieve cost parity with conventional oils while eliminating environmental and ethical concerns. For manufacturers, ecologically conscious ingredients are no longer a ‘nice-to-have’; they’re a necessity, Nemailla Bonturi explained.
Eyeing commercial-scale production
ÄIO has already begun sharing product samples with manufacturers in both food and personal care, with initial interest from producers seeking to reduce their environmental footprint while maintaining product performance.
With the tonne-scale milestone achieved, ÄIO is now preparing for its next major goal: establishing a commercial production facility capable of producing 2,000 tonnes annually.
The company has completed pre-engineering concept work for this facility and is developing partnerships with companies involving feedstock supply, distribution, and off-take agreements.
Scaling the production closer to commercial levels allows ÄIO to validate and optimize our production technology and its efficiency. We have already reduced our unit costs by 80 percent in the last years, through scale and optimization, and we expect to continue with a similar cost reduction curve for the foreseeable years. The one-tonne milestone highlights the great progress our team has made in realizing fermentation technology that is a feasible and cost-competitive alternative to current unsustainable sources, said Martin Mets, CFO at ÄIO.
The company also recently secured €1 million in funding from the Estonian government-backed Applied Research Programme (RUP), organized by the Estonian Business and Innovation Agency (EIS).
The company also plans to launch a new fundraising round by late 2026 to accelerate its expansion and capture growth in the alternative fats and oils market, forecasted to reach US$4.5 billion by 2032.
We’re now showing that the commercial viability for plant-based alternatives to traditional oils is very real. We’re ready to bring these benefits to the world, proving that our technology can deliver sustainable alternatives at the scale needed to make a real impact on global food systems and other industrial applications across entire product categories, Nemailla Bonturi concluded.
