Swedish foodtech startup Millow has opened its first commercial-scale factory at a former LEGO production hall in Gothenburg. 

The facility will use a patented dry fermentation process in which mycelium — the root-like structure of fungus — feeds on oats in a bioreactor. There, it rapidly grows into a meat alternative that can replace everything from beef mince to doner kebab.

Millow aims to produce 500kg of the so-called mycoprotein per day at the site once fully operational later this year. The company’s founders hope its product, also called Millow, will iron out the kinks in the alternative meat sector. 

“Critics say plant meat failed on taste and transparency; this factory shows we can solve both at an industrial scale,” said Dr Staffan Hillberg, the chair of Millow. 

While 2021 saw a whopping $6.9bn invested in alternative protein startups, funding has steadily fizzled since then, reaching just $1.1bn last year, according to data from the Good Food Institute. The only bright spot for the sector was fermentation, where VC investment was up 43% in 2024 from the previous year.

Leading Europe’s growing crop of fermentation startups are the likes of Hamburg-based Infinite Roots, which raised $58mn in January to scale its alternative protein made from waste byproducts from the beer industry. Another venture is Berlin-based Formo Foods, which secured $61mn last year to turn fungus into cheese. 

In comparison, Millow is a minnow — it’s raised a total of $3.4mn from two EU grants. However, the company is confident in its product. It claims the food is the purest alternative meat ever made. 

Magic mushrooms

Millow is made using just oats and mycelium. It doesn’t use any added binders or flavourings, unlike most mycoprotein products, such as Quorn. Its dry‑state fermentation process was developed over decades by the company’s co-founder, Professor Mohammad Taherzadeh (pictured top). The technique promises to cut water use by 95%, energy use by 67%, and operational costs by two-thirds when compared to conventional methods. 

Unlike liquid fermentation, which produces thin protein threads that must be mixed and bound with other ingredients, Millow’s dry fermentation yields a complete product all in one go. The entire process takes 24 hours. 

“The result is a single ingredient, minimally processed sliceable block that behaves like muscle, not a reconstituted mash,” Hillberg told TNW. The protein is then ready to be shaped into finished products such as burgers or meatballs.  

Besides the potential culinary advantages, Millow could also curb global heating. The company estimates its product can reduce greenhouse gas emissions by up to 97% compared to beef.  

At a time when plant-based and cultivated meat alternatives are struggling, Millow’s factory suggests fermentation could be the breakthrough the sector needs.

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