Äio: Edible Fat from Agricultural Waste - Startup Battlefield

ÄIO: Transforming Agricultural Waste into Sustainable Fats

Äio, a name derived from the Estonian god of dreams and pronounced EYE-oh, represents a promising venture. This emerging startup, originating from Estonia, has pioneered a novel process for converting agricultural byproducts, such as sawdust, into valuable fats applicable to both the food and cosmetic sectors.

Addressing the Palm Oil Dependency

The development of this technology offers a potential solution to lessen global reliance on palm oil. Palm oil is widely utilized in food and cosmetic production due to its emulsifying and preservative qualities. However, its production has been linked to significant environmental damage, notably the destruction of rainforests and delicate ecosystems to accommodate palm oil plantations.

The Science Behind ÄIO

ÄIO was established by biotechnology experts Nemailla Bonturi and Petri-Jaan Lahtvee, building upon Dr. Bonturi’s doctoral research. Her groundbreaking work resulted in the creation of a unique microbe – a specific strain of yeast. This yeast distinguishes itself by converting sugars into fat molecules, unlike conventional yeasts that produce carbon dioxide or alcohol.

The company intends to showcase its innovative technology at the Startup Battlefield during this year’s TechCrunch Disrupt event, scheduled to take place later this month in San Francisco.

From Lab to Commercialization

Prior to co-founding ÄIO, Lahtvee served as a professor of Food Tech and Bioengineering at the Tallinn University of Technology in Estonia. In 2016, he managed a biotech laboratory where Bonturi was his initial employee. She introduced her newly developed microbe, and together they refined it for scalable manufacturing.

Estonia’s robust agricultural sector, encompassing corn, grains, sugarcane, and lumber, provided an ideal environment to investigate the feasibility of utilizing sugars derived from these waste streams to nourish the microbe. “We embarked on developing metabolic engineering tools,” Lahtvee explained to TechCrunch, confirming the microbe’s ability to effectively consume these sugars.

Fat Profile and Versatility

According to Lahtvee, the resulting fat’s composition is remarkably similar to existing fats. In its solid state, it closely resembles chicken fat. Furthermore, the fermentation process can be adjusted to yield a liquid oil, presenting a viable alternative to oils like canola or rapeseed oil.

Progress and Future Plans

Recognizing the commercial potential of their solution in 2022, the founders launched ÄIO, aiming to secure venture funding and forge partnerships for market entry. To date, they have raised approximately $7 million. Since its inception, the company has developed precision fermentation techniques, received the 2024 Baltic Sustainability Award, and garnered interest from over 100 potential collaborators globally.

“Our comprehensive analysis indicates that our final product matches the purity of vegetable oils, and is even free of pesticides,” Bonturi stated in an interview with TechCrunch.

Scaling Production and Regulatory Approvals

ÄIO’s next steps involve constructing a commercial-scale production facility by 2027. They also plan to license their technology to companies in the cosmetic and food industries. Obtaining regulatory approvals for food applications will be a key focus, likely beginning with Singapore, a nation known for its openness to innovative food production methods.

“Naturally, this is a novel production method, and we must navigate the necessary permits and analyses,” Bonturi clarified.

A Vision for Global Impact

Bonturi expressed her aspiration to demonstrate that “two scientists from a small country can contribute positively to the world,” highlighting her personal ambition for the company’s success.

For those interested in learning more about ÄIO and other groundbreaking startups – including attending pitches and listening to speakers across four stages – join us at Disrupt, October 27 to 29, in San Francisco. Further details are available here.