‘Most natural meat substitute’ to be produced in Swedish mycoprotein facility.

      Swedish foodtech startup Millow has inaugurated its first commercial-scale factory in a former LEGO production facility located in Gothenburg. The plant will implement a patented dry fermentation method where mycelium—the root-like structure of fungus—consumes oats in a bioreactor. This process allows it to quickly develop into a meat alternative capable of substituting products ranging from beef mince to doner kebab.

      Once fully operational later this year, Millow plans to produce 500 kg of the mycoprotein daily at this site. The founders are optimistic that their product, also named Millow, will address issues in the alternative meat industry.

      "Critics argue that plant-based meat has fallen short in terms of taste and transparency; this factory demonstrates that we can tackle both challenges at an industrial scale," stated Dr. Staffan Hillberg, the chair of Millow.

      Millow 'mince' in a poke bowl. Credit: Millow

      The 💜 of EU techThe latest updates from the EU tech landscape, insights from our knowledgeable founder Boris, and some dubious AI art. It's free, delivered weekly to your inbox. Sign up now! In 2021, alternative protein startups attracted a staggering $6.9 billion in investments, but funding has significantly declined since then, dropping to only $1.1 billion last year, according to data from the Good Food Institute. However, fermentation received a positive turn, with venture capital investment rising by 43% in 2024 compared to the prior year.

      Among the leading fermentation startups in Europe are the Hamburg-based Infinite Roots, which raised $58 million in January to expand its alternative protein production from waste byproducts of the beer industry. Another example is Berlin's Formo Foods, which secured $61 million last year to convert fungus into cheese.

      In this context, Millow appears to be a smaller player, having raised a total of $3.4 million from two EU grants. Nevertheless, the company is confident in its product, claiming it to be the purest alternative meat ever created.

      Magic mushrooms

      Millow's product consists solely of oats and mycelium, without any added binders or flavorings, differentiating it from many mycoprotein products like Quorn. The dry fermentation process has been developed over decades by co-founder Professor Mohammad Taherzadeh (pictured top). This method promises a 95% reduction in water usage, a 67% decrease in energy consumption, and a two-thirds cut in operational costs when compared to traditional techniques.

      Unlike liquid fermentation, which yields thin protein strands that require mixing and binding with other ingredients, Millow's dry fermentation provides a complete product in a single step. The entire process lasts 24 hours.

      "The result is a single, minimally processed sliceable block that behaves like muscle, rather than a reconstituted mash," Hillberg shared with TNW. The protein can then be formed into finished products like burgers or meatballs.

      Beyond its culinary benefits, Millow could also help mitigate global warming. The company claims that its product can cut greenhouse gas emissions by as much as 97% when compared to beef.

      As plant-based and cultivated meat alternatives face challenges, Millow's factory indicates that fermentation might be the pivotal innovation the sector requires.

      We will provide further insights into foodtech trends at the TNW Conference. A stellar lineup of speakers, startups, investors, corporate innovators, and policymakers will gather in Amsterdam on June 19-20 for the event. Interested in joining? We have a special offer for you—use the code TNWXMEDIA2025 at the ticket checkout to receive a 30% discount.