ÄIO secures USD 1.2M to advance vegan fats for cosmetics

EUROPE – An Estonian biotech firm, ÄIO, has successfully secured a €1 million(USD 1.17 million) grant from the Estonian government-backed Applied Research Programme (RUP), organized by the Estonian Business and Innovation Agency (EIS) to accelerate its work on sustainable, vegan fats and oils for the cosmetics sector. 

This financial support will be utilized in a three-year research project focused on advancing ÄIO’s unique fermentation process.

According to ÄIO, the grant, contributing to a total project budget of €1.8 million (USD 2.09 million), underscores significant governmental backing for this groundbreaking technology.

The €1 million(USD 1.17 million) grant is earmarked for scaling production processes, refining purification methods to meet stringent regulatory requirements, conducting thorough safety and efficacy evaluations, and expanding the company’s intellectual property portfolio. 

Co-founder and CEO Nemailla Bonturi emphasized the significance of the grant, stating, “This grant represents more than funding; it’s validation from the Estonian government that our technology can fundamentally reshape how cosmetics ingredients are produced,” says Nemailla Bonturi, Co-founder and CEO at ÄIO. “We’re now ready to show we can scale that impact on the international stage, bringing smarter, more sustainable ingredient alternatives to an industry that touches the everyday lives of all of us. We’re excited to start commercializing our innovation and to collaborate with forward-thinking beauty and personal care brands around the world.”

ÄIO employs an innovative method: it leverages specialized yeast strains in precision fermentation to convert industrial byproducts like wood residues and agricultural waste into premium, food-grade oils and fats. 

This yields vegan, highly effective, and economical ingredients that offer a clean alternative to the animal fats, palm oil, coconut oil, and mineral oils commonly used in personal care products.

The environmental advantages of ÄIO’s technology are substantial. It significantly reduces land use by 97% and water consumption by 90% compared to traditional palm oil production. 

In addition, it promotes a circular economy by transforming otherwise low-value industrial waste into valuable cosmetic components. 

These attributes position ÄIO’s oils as a compelling choice for a cosmetics industry increasingly pressured to move away from ingredients linked to deforestation, ecological damage, and skin irritation.

As new EU regulations aim to eliminate deforestation-associated ingredients from supply chains, the demand for sustainable, upcycled fats, such as those developed by ÄIO, is poised to increase significantly. 

The company already collaborates with over 120 global partners across the food, cosmetics, and household goods sectors, strategically positioning itself to supply the expanding market for eco-friendly, vegan cosmetic ingredients.

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