ÄIO, an Estonian biotech company, has secured €1 million in funding. The company develops sustainable, non-animal fats through fermentation. The funds will accelerate research and development. ÄIO aims to replace traditional oils used in cosmetics and chemicals. Its oils are vegan and environmentally friendly.
The company was founded in 2022 as a spin-off from Tallinn University of Technology. It uses biomass and precision fermentation. The process reduces land use by 97% and water use by 90%, compared to palm oil.
ÄIO offers an eco-conscious alternative to palm and coconut oil. Its oils also serve as a safer, bioactive option over petroleum-based mineral oils. The €1 million grant comes from the Estonian government’s Applied Research Programme. It supports a three-year project focused on fermentation-derived lipids. The total project budget is €1.8 million.
Nemailla Bonturi, CEO of ÄIO, said the funding validates their technology’s potential. She emphasized plans to scale production and collaborate with global beauty brands. R&D Expert Ene Viiard highlighted Estonia’s potential to develop globally competitive innovations.
The timing aligns with new EU regulations on deforestation and sustainable sourcing. ÄIO’s yeast-based oils are traceable and stable. They address industry concerns over PFAS, microplastics, and environmental pollution. ÄIO’s ingredients can be used in various cosmetics, from soap to high-end serums.
Magdalena Koziol, Head of Cosmetics Development at ÄIO, noted the industry’s shift towards sustainability. She said fermentation ingredients offer performance and cost benefits. ÄIO is in discussions with cosmetic manufacturers and sending samples for testing. The company plans to raise additional funds by late 2026. The alternative fats market is projected to grow 6% annually, reaching $4.5 billion by 2032.
