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By Agroempresario.com
Finnish biotech startup Enifer has announced a strategic partnership with FS, Brazil’s largest corn ethanol producer, to build a pilot plant for mycoprotein production using thin stillage, a liquid byproduct from ethanol distillation. The facility, set to produce 500 tons annually, will test the scalability of Enifer’s proprietary PEKILO fermentation process in South America and has received R$9.8 million ($1.7 million) in support from the Brazilian innovation agency FINEP.
Enifer's PEKILO is a fungus-derived protein originally developed in Finland in the 1970s to feed livestock. Now reimagined through modern biotech innovation, the protein is gaining traction as a sustainable feed ingredient for aquaculture and pet food. “Transferring this process to Brazil and adapting it to a new feedstock confirms the robustness of our technology,” said Simo Ellilä, cofounder and CEO of Enifer.
The pilot project is a key milestone in Enifer’s international expansion, with potential to develop into a 10,000-ton industrial-scale facility if successful. The product will initially be commercialized in Brazil, Ecuador, and Chile, offering a new solution for animal protein producers seeking high-value, low-footprint ingredients.
According to Daniel Lopes, VP of Sustainability and Business Development at FS, the project’s main objective is to develop and test high-performance functional ingredients from byproducts: “This pilot will allow us to validate fungal fermentation and test the market with innovative nutrition solutions.”
The PEKILO process capitalizes on the nutrient-rich content of thin stillage, transforming it into high-protein biomass rather than diluting it into low-value DDGS (Dried Distillers Grains with Solubles). Typically, thin stillage is either evaporated or reused in the ethanol production loop. “This is an alternative, higher-value route,” Ellilä explained. “Instead of discarding the glycerol content, we convert it into usable protein.”
This aligns with FS’s circular economy strategy. “We are adding extra value to second-crop corn using a raw material we already produce, without reducing DDG output,” added Rafael Abud, CEO of FS. “This marks a technological leap for Brazilian agribusiness.”
PEKILO mycoprotein has historical roots—it was used commercially in Finland between 1975 and 1991 as animal feed. It is produced by fermenting the Paecilomyces variotii KCL-24 fungal strain, originally cultivated using byproducts from the pulp and paper industry.
Revived by Enifer, the technology has been modernized to accept various feedstocks, including molasses, lactose permeate, and now ethanol thin stillage. This versatility is a key competitive edge. “Over the years, we’ve tested around 100 feedstock samples,” said Ellilä. “Thin stillage stands out for its richness—it requires minimal nutrient supplementation, although it does present some handling challenges.”
Starting with a pilot facility makes strategic sense. “Integration with FS’s corn ethanol infrastructure needs to be validated,” said Ellilä. “It’s also about training local teams and developing the market.”
FS, with its deep local networks and existing protein offerings, is well-positioned to commercialize the product regionally. While specific offtake agreements are still under discussion, initial testing and interest from industry stakeholders have been positive.
Enifer is already building a 3,000-ton factory in Kirkkonummi, Finland, to supply the European market. The company has also applied for Novel Food approval in Europe and GRAS status in the U.S., paving the way for future human food applications such as meat alternatives, dairy substitutes, and snack products.
The company has established collaborations with major players in the feed and food sectors, including Skretting (Nutreco’s aquafeed division), Purina (a global pet food brand), and Valio (a leading Finnish dairy producer). Enifer is also gaining traction with developers and brands seeking functional, sustainable ingredients to meet their carbon and innovation targets.
“PEKILOPet can help brands meet sustainability and cost-efficiency goals,” said Ellilä. “There’s a growing market for high-quality, traceable, non-GMO protein ingredients. We already have letters of intent (LOIs) in place and expect product launches by 2026 at key trade fairs like Interzoo.”
As global demand for protein increases, especially from non-traditional and sustainable sources, Enifer’s approach could reshape how byproducts are used in agriculture and food production. With strong R&D backing and industrial scalability, the company is on a mission to unlock new value streams in the bioeconomy, particularly in Latin America, where raw material availability is high and demand for sustainable inputs is rising.
In the long run, Enifer envisions a global network of PEKILO plants co-located with bioethanol and agro-industrial sites, enabling on-site circular protein production that reduces waste, emissions, and costs.
Enifer’s partnership with FS represents a bold step forward for agri-tech and feed innovation, proving that advanced fermentation can transform low-value waste streams into profitable, sustainable solutions. It’s a formula with potential to revolutionize protein sourcing, one mycelium at a time.
