Investments & Finance

European Commission Commits €350M to Strengthen Alternative Protein Production with Fermentation

The European Commission has launched a strategy aimed at positioning the EU as a global leader in life sciences by 2030, focusing on harnessing the potential of biotechnology, digital innovation, and sustainability. As part of this strategy, the Commission is setting aside €350 million in funding to support food and agricultural innovations, particularly in the areas of fermentation technologies.

“Momentum is building behind innovative ways to develop a more sustainable food system”

Fermentation technologies, such as biomass and precision fermentation, are central to the EU’s approach to sustainable food production. Biomass fermentation, which can transform agricultural byproducts into food products, has the potential to reduce waste and create ingredients that mimic meat, while precision fermentation is being used to produce proteins and sustainable alternatives like chocolate compounds and palm oil.

Lea Seyfarth, Policy Officer at GFI Europe, welcomed the strategy, noting, “It’s great to see the Commission recognising the central role that food innovation can play in boosting Europe’s life sciences sector and proposing measures that can harness the region’s growing expertise in transformative technologies such as fermentation.”

NPI Jeroen Hugenholtz holding product samples
© NoPalm Ingredients

Overcoming scaling challenges

However, scaling these technologies has proven challenging, particularly for startups and small businesses. The strategy outlines several measures to address these hurdles, including public-private partnerships and annual conferences to encourage collaboration and knowledge-sharing. The Commission is also investing €150 million under the Horizon Europe program to support the development of sustainable bioeconomy solutions, with an additional €200 million allocated to boosting innovation through 2026-2027.

The strategy highlights the significant economic potential of these technologies. A report from the Good Food Institute (GFI) Europe and SYSTEMIQ suggests that alternative proteins could add €65 billion to Germany’s economy by 2045 and create up to 250,000 jobs, while also offering a way to make European food production more sustainable.

Alongside funding, the Commission proposes a strategic research and innovation agenda to tackle key challenges in food systems, such as improving the taste, texture, and cost of alternative proteins. There is also a focus on public outreach to improve consumer understanding of ultra-processed foods (UPFs), which may hinder the adoption of plant-based options despite evidence of their health benefits.

NoMy
© NoMy

Momentum for sustainable food systems

The strategy includes a call for stronger scientific collaboration across Europe, noting the importance of coordinated action between Member States, researchers, and industry. The Commission’s efforts are aimed at reducing regulatory barriers, encouraging investment in innovative life sciences sectors, and accelerating the commercialization of biotechnologies.

Seyfarth continued, “With the incoming Danish presidency highlighting the importance of biotech in food production, momentum is building behind innovative ways to develop a more sustainable food system. This strategy is a step towards unlocking the EU’s potential to become an alternative protein world leader, driving growth and reducing reliance on imports.”




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