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Biotech in the Baltics: ÄIO, Sustainable fats from sawdust

Fats and oils are critical components of our diet, but their production poses significant sustainability challenges. Currently, much of the global fat and oil supply depends on agriculture, which requires vast amounts of arable land and water. As the global population grows, this demand becomes increasingly unsustainable. Additionally, the environmental costs, such as deforestation for palm oil production, further exacerbate the climate crisis, while geopolitical conflicts disrupt supply chains. A new solution is urgently needed.



Enter ÄIO, an Estonian biotech company tackling this challenge head-on with a groundbreaking approach. By using microbes and fermentation, ÄIO has developed a sustainable alternative to conventional fats and oils. Unlike traditional agriculture, fermentation relies on vertical fermentation tanks, eliminating the need for arable land and drastically reducing water usage—up to ten times less than conventional farming. This innovative method offers a way to produce fats without overburdening the planet's resources.


The process ÄIO employs is similar to brewing beer. It involves robust yeast strains capable of thriving on various industrial and agricultural side streams. For example, their yeast grows on wood hydrolysates derived from sawdust, a byproduct of the wood industry. As the yeast grows, it accumulates lipids inside its cells, which can then be extracted to create sustainable fats and oils. This method not only makes use of otherwise wasted materials but also produces versatile products for a range of industries.


ÄIO’s portfolio currently includes three innovative products:

  1. Encapsulated Oils: A lipid-rich powder containing oils, proteins, and fibers. This nutrient-dense product can be used in various applications.

  2. Red Oil: A liquid oil rich in antioxidants and carotenoids, designed as a sustainable alternative to traditional vegetable oils.

  3. Buttery Fats: A fat product resembling chicken lard in texture, suitable as a replacement for traditional animal fats.


With these products, ÄIO is ready to support industries such as food, cosmetics, household chemicals, pet food, and animal feed.

ÄIO is also scaling its production capabilities to bring these innovations to market. Having demonstrated the scalability of its technology in reactors ranging from 300 liters to 10,000 liters, the company is now preparing to build a demo plant with a capacity of 20,000 liters. This milestone will enable ÄIO to produce at a scale that meets industrial demands.


Looking ahead, ÄIO envisions endless possibilities for its technology. The team is actively seeking collaborations to test its products across diverse industries and on new side streams. With such versatility, ÄIO is paving the way for a more sustainable future—one where fats and oils can be produced without compromising the health of our planet.



Visit ÄIO at https://aio.bio/

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