ÄIO and TFTAK raises €1.94M - ArcticStartup

ÄIO and TFTAK raises €1.94M - ArcticStartup
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Partnerships
Climatetech
ÄIO and TFTAK raises €1.94M
Nurcin Metingil
August 28, 2026
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Partnerships
Climatetech
ÄIO and TFTAK raises €1.94M
Nurcin Metingil
August 28, 2026
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Credit: ÄIO, TFTAK
Estonian biotech company
and research organisation
have received €1.94 million from
the Estonian Business and Innovation Agency’s (EIS)
Applied Research Programme for a three-year R&D project focused on microbial oil production. ÄIO develops fermentation-based oils and fats for potential use in areas including food and cosmetics, while TFTAK contributes expertise in synthetic biology, bioprocess development and food research. The €2.53 million DigiFoundry 2.0 project, funded through the programme of
Estonia’s Ministry of Economic Affairs and Communications
, will build on the partners’ previous research into precision fermentation and microbial strain development. The project will combine synthetic biology, fermentation, automation and digital process control to improve the efficiency and
scalability
of producing oils and fats from food, agricultural and wood-industry side-streams. The funding will support work on linking strain development with automated production and data analysis, with the partners aiming to reduce development and manufacturing costs and improve the consistency of fermentation processes.
ÄIO is an Estonian biotechnology company founded in 2022 as a spin-off from Tallinn University of Technology (TalTech). The company develops fermentation-based methods for producing oils and fats from agricultural, food and wood-industry side-streams. Its work focuses on using specialised microorganisms to produce alternative fats and oils for applications including food, cosmetics and other consumer products.
“With DigiFoundry, we built the foundation. With DF2.0, we are connecting biology, fermentation and digitalisation into one integrated production system,” says
Prof. Petri-Jaan Lahtvee
, Co-founder and COO of ÄIO and Professor at