With their unique ability to break down complex organic materials, fungi are becoming an important resource in Finland's efforts toward a sustainable bioeconomy. The Fantastic Fungi project coordinated by VTT brings together seven industrial partners to unlock the untapped potential of fungi in transforming industrial organic waste into high-value products such as industrial enzymes, food-grade proteins, and sustainable biomaterials.
With their unique ability to break down complex organic materials, fungi are well-suited to overcome the inhibitors and toxins that often prevent efficient use of industrial side streams.
The Fantastic Fungi project will focus on converting various organic waste streams, such as byproducts from oat drink manufacturing, pulp and paper, spent fungal biomass from enzyme production and more, into sustainable products that can re-enter the economy. By leveraging fungi’s robust metabolic systems, the project aims to retain essential nutrients such as carbon, nitrogen, and phosphorus, which would otherwise be lost in waste disposal.
“Our goal with the Fantastic Fungi project is to demonstrate how fungi can turn industrial byproducts and waste streams into valuable resources, advancing both economic and environmental sustainability,” says Arja Paananen, Research Team Leader at VTT.
“By keeping critical nutrients within the production cycle, we’re not only reducing waste but also creating new opportunities for sustainable industry practices that align with Finland’s circular economy goals.”
Innovation-driven solutions
This Business Finland funded co-research initiative is part of the newly launched Circularizing Industrial Material Flows program. In addition to VTT the project consortium includes seven companies: Biomush, Enifer, Kääpä Biotech, Raisio, AB Enzymes, Synbio Powerlabs, and UPM. The consortium represents the entire value chain from producers of industrial side streams to companies specializing in fungal biomass production and scale-up technologies, to create a circular approach to utilizing industrial organic waste.
Fantastic Fungi will employ artificial intelligence tools to overcome the technical challenges of bioconversion and enhance the understanding and utilization of fungal capabilities. This approach will streamline the process of engineering fungal strains, allowing for faster optimization and scaling, and ultimately accelerating the development of new, sustainable applications for industrial byproducts.
A sustainable future for Finland’s bioeconomy
The new solutions developed in the project for sustainable food and material production, offer partners the opportunity to create value from waste streams and increase their competitive edge in the global market.
Fantastic Fungi aligns with Finland's sustainability vision, reducing industrial waste while contributing to carbon, nitrogen, and phosphorus retention.
“In this project we will also address ethical and safety considerations, ensuring that these new technologies meet rigorous standards for sustainability and public trust. Finland’s bioeconomy stands to benefit from these sustainable technologies, positioning the nation as a leader in circular economy solutions for the global market,” Paananen says.
