ÄIO, an Estonian biotech company, has produced its first full tonne of yeast-based oils for cosmetics and food. This milestone marks a major step toward large-scale manufacturing of sustainable, plant-derived ingredients. The company recently secured €1 million in funding from the Estonian government-backed Applied Research Programme.
Using biomass and precision fermentation, ÄIO transforms industrial side streams into nutrient-rich oils and fats. Their encapsulated oil, high in proteins, fibers, and functional lipids, offers an eco-friendly alternative to palm, coconut oil, eggs, and cocoa.
In cosmetics, the oil acts as a nourishing, natural substitute for petroleum-based mineral oils. In food, it provides a savory umami flavor and versatile texture, suitable for products like plant-based patties and confections.
“This is more than a milestone; it’s a validation of our vision,” said CEO Nemailla Bonturi. “Starting in Brazil and now producing at this scale in Europe is incredibly rewarding. This tonne proves our process can scale beyond labs and shows real commercial promise.”
In cosmetics, brands are under pressure to find natural, sustainable ingredients. The EU’s microplastics ban and restrictions on “forever chemicals” are pushing manufacturers toward plant-based alternatives. Bonturi explains that the economics now favor fermentation-based oils, with costs comparable to traditional sources but without environmental harm.
With the tonne milestone reached, ÄIO plans to build a facility capable of producing 2,000 tonnes annually. They’ve completed pre-engineering work and are developing partnerships for feedstock, distribution, and sales.
“Scaling up allows us to improve efficiency and reduce costs,” said CFO Martin Mets. “We’ve already cut unit costs by 80%, and we expect to keep reducing them. This milestone shows that our biotech process is a viable, cost-competitive alternative to unsustainable oils.”
ÄIO has started sharing samples with manufacturers in both food and personal care. Initial interest is high among companies seeking to lower their environmental footprint while maintaining product quality. The company plans to raise more funds by late 2026 to accelerate growth, targeting a market projected to reach $4.5 billion by 2032.
Concluding, Bonturi stated, “We’ve proven that plant-based oils can be commercially viable. Ultimately, we’re ready to bring sustainable, scalable alternatives to global markets and transform how industries source their ingredients.”
