When policy meets science: why the Ministry visit to ÄIO matters

At ÄIO, we believe that building truly sustainable food and ingredient systems requires more than technological breakthroughs alone. It also depends on open dialogue between science, industry, and public institutions. This is why we were pleased to welcome representatives from the Ministry of Regional Affairs and Agriculture, the Minister, Hendrik Johannes Terras and Deputy Secretary General for Innovation and Strategy, Mr Tõnis Tänav to our facilities.

The visit focused on understanding how fermentation-based technologies can support Estonia’s long-term goals in food security, agriculture, and the bioeconomy. At ÄIO, we develop fats and oils through precision fermentation using low-value agricultural, food, and forestry side-streams, creating scalable alternatives to palm oil, animal fats, and other environmentally intensive raw materials.

Petri-Jaan Lahtvee, Co-founder of ÄIO and Professor at TalTech introducing ÄIO products to the Ministry delegation members Terje Kaelep,  Gret-Kristel Mällo and the Minister.

Petri-Jaan Lahtvee, Co-founder of ÄIO and Professor at TalTech:
“For Estonia, the bioeconomy is not an abstract concept, it is a practical opportunity. Fermentation allows us to turn local side-streams into globally competitive ingredients while reducing environmental pressure. Connecting scientific capability with national priorities is essential if we want innovation to scale beyond the lab.”

During the visit we confirmed how well ÄIO fits into the Ministry’s strategic priorities:

• valorization and circular bioeconomy: ÄIO converts low-value agricultural, food and forestry side-streams into high-value fats and oils
• food security and sustainable food systems: ÄIO helps build future-proof supply chains less exposed to deforestation, climate shocks, and geopolitical risk by replacing palm oil, animal fats and climate-vulnerable crops
• climate & land-use impact: ÄIO’s fermentation-based production uses 97% less land, requires 10x less water, reduces pressure on agricultural land and ecosystems, supporting EU climate targets
• innovation-driven agriculture: ÄIO shows how science, fermentation, and agriculture can work together and not in competition, but in synergy

The Ministry’s role goes far beyond “farming”. Its work sits exactly at the intersection of food systems, bioeconomy, climate, and innovation, how we produce food, use land, and transition to sustainable bio-industries.

From lab to global impact

Estonia has positioned itself as a leader in digital innovation, and increasingly, in deeptech and biotechnology. For science-driven companies like ÄIO, collaboration with public institutions is essential to ensure that regulation, infrastructure, and innovation evolve together.

ÄIO was founded as a university spin-off, and our journey from lab-scale research to pilot and industrial-scale production reflects the importance of a supportive ecosystem. Today, our team combines Estonian and international expertise, working to scale fermentation-derived lipids for food, cosmetics, and beyond.

Mary-Liis Kütt, Chief Innovation Officer at ÄIO:
“Scaling sustainable ingredients is not just a technical challenge, it’s a system challenge. From raw material sourcing to regulation and market readiness, alignment across stakeholders makes it possible to move faster and build solutions that are both industrially viable and environmentally meaningful.”

The visit reinforced a shared understanding: sustainable food systems will be built through collaboration. As climate pressure, regulatory change, and global demand for traceable ingredients continue to grow, Estonia has an opportunity to lead by aligning science, policy, and industry early.

We thank the Ministry for the visit and the constructive discussion, and we look forward to continued dialogue as Estonia’s bioeconomy and deeptech ecosystem continue to evolve.

Minister Terras at ÄIO lab

About ÄIO and our ingredients

ÄIO is an Estonian biotechnology company developing natural, fermentation-derived fats and oils as sustainable alternatives to palm oil and animal fatss. Using a fermentation process, ÄIO converts locally sourced, low-value side-streams from agriculture, food, and forestry into high-performance lipids with fully traceable EU origin.

Our product portfolio includes Encapsulated oil., RedOil and ZymaLipid Complex for the food, cosmetics, and oleochemical industries. All ÄIO ingredients are naturally derived, vegan, palm-free, and sustainably produced, offering stable quality, year-round supply, and scalability without deforestation or ecosystem degradation.

By combining science-driven innovation with circular economy principles, ÄIO is building a new generation of ingredients that prove sustainability, performance, and industrial scale can go hand in hand, locally produced in Europe and ready for global markets.