In the year 2023, a surge in egg prices opened up an opportunity for alternative protein companies to prove their ability to compete with traditional egg manufacturers.
Fast forward one year, and while prices have returned to normal, the momentum in developing sustainable egg products remains strong. One company at the forefront of this endeavor is Onego Bio, a food-biotech company based in Finland. They utilize the power of precision fermentation and the fungus Trichoderma reesei to create a plant-based egg white alternative called Bioalbumen.
Onego Bio was founded in 2022 by Maija Itkonen, who also serves as the CEO, and precision fermentation expert Christopher Landowski. The pair spun off from VTT (Technical Research Center of Finland) to create their innovative company.
“The microorganism grows a little bit slower, but the productivity is much, much higher. So it generates a bigger yield, and the product is simple in that it doesn’t require specialized equipment. It all comes back to cost because in order to really compete with animal products, it needs to be at the same price.” – Maija Itkonen
The patented fungal fermentation technology used by Onego Bio enables them to produce 120 grams per liter in large 250,000-liter fermentation vessels. They are on track to achieve competitive pricing with traditional egg protein production methods at this capacity.
Bioalbumen is described by Onego Bio as “bioidentical” to ovalbumin, the primary protein found in chicken egg white. It boasts all essential amino acids and is high in protein, with 90 grams per 100 grams of egg white. Additionally, the company can create Bioalbumen with a smaller environmental footprint, at just 10% of the impact of eggs from chickens.
One of the key advantages of Bioalbumen is its clean, neutral flavor, making it a versatile replacement for eggs in a wide range of foods such as baked goods, snacks, and sauces. The plan is for Onego Bio to sell Bioalbumen to companies who will then incorporate it into their products.
Itkonen says, “What we do is different from, for example, the systems other companies are working on.” She continues, “The microorganism grows a little bit slower, but the productivity is much, much higher. So it generates a bigger yield, and the product is simple in that it doesn’t require specialized equipment. It all comes back to cost because in order to really compete with animal products, it needs to be at the same price.”
The company is set to debut in North America initially, with plans to expand to Europe, South America, and Asia following their expected self-affirmed GRAS (Generally Recognized as Safe) status for Bioalbumen this year and a no objections letter from the U.S. Food and Drug Administration in 2025.
To prepare for this expansion, Onego Bio recently secured $40 million in Series A funding. The funds will go towards bringing Bioalbumen to market and increasing their manufacturing capabilities. The company plans to grow its U.S. commercial team and collaborate with co-manufacturers while also finalizing their own factory. This factory will be a single Onego full-scale manufacturing unit, with a fermentation capacity of 2 million liters. Itkonen states that this would effectively replace an egg farm with 6 million laying hens.
“Onego Bio is taking all the right steps to commercialize in record time … with a clear path to industrialization, go-to-market and profitability. In less than two years, Onego is already working with major global food companies and is staged to disrupt the $330 billion egg market and create system level change, accelerating the green transition.” – Tomosaku Sohara, Managing Partner of NordicNinja
Leading the investment in Onego Bio’s Series A round is Japanese-Nordic venture capital firm NordicNinja. Equity investors Tesi and EIT Food, as well as existing investors Agronomics, Maki.vc, Holdix, Turret, and a group of strategic partners, also participated in the round.
In addition, the company received a non-dilutive funding of $10 million from Business Finland. This public organization, backed by the Finnish Government, supports innovation to drive systemic change and address global challenges. With this Series A funding, Onego Bio’s total funding now sits at $56 million.
Itkonen proudly states that Onego Bio has completed one of the largest A-rounds in the Nordics, solidifying their position as a disruptor in the $330 billion egg market. The company is well-positioned to create significant change in the food industry, accelerating the shift towards sustainability.
