From Waste to Protein: Enifer and FS Turn Ethanol By-Product Into Animal Feed Innovation

Courtesy: Enifer

In a first for Latin America, Finnish biotech company Enifer is introducing its proprietary PEKILO® fermentation platform to Brazil, marking a key milestone in the global expansion of fungi-based protein production. In collaboration with FS, one of Brazil’s largest corn ethanol producers, the initiative will convert ethanol production side streams into high-performance mycoproteins for pet food and aquaculture.

The pilot project will be the first time PEKILO® is produced outside Europe and the first to use corn ethanol-derived thin stillage as feedstock—a significant demonstration of both geographic and process versatility. Enifer’s biomass fermentation technology uses a specific fungal strain to produce PEKILO®Pet and PEKILO®Aqua, nutrient-rich proteins that are over 60% protein, high in beta-glucan fiber, and low in fat and carbohydrates.

“Transferring this process across the Atlantic to a new continent and using a new agricultural side stream is a significant validation of the flexibility and robustness of the PEKILO® fermentation technology,” said Simo Ellilä, co-founder and CEO of Enifer. “It shows that PEKILO® can deliver consistent performance from a wide variety of raw materials and in very different industrial settings.”

FS has validated thin stillage from its corn ethanol operations as a viable input for fermentation and is now constructing a pilot-scale production line directly integrated with its existing ethanol infrastructure. The facility will be capable of producing up to 500 tonnes annually of PEKILO®Pet and PEKILO®Aqua, creating a new stream of value from agricultural residues without disrupting existing dried distillers' grain (DDG) output.

“This project reinforces our commitment to innovation, science and sustainability,” said FS CEO Rafael Abud. “We are adding value to second-crop corn by developing an innovative solution for animal nutrition, using a pre-existing raw material without compromising our current production. This is a significant technological advancement for the sector.”

Unlike conventional feed co-products, PEKILO® ingredients offer functional benefits that go beyond nutrition. Their high digestibility, palatability, and water absorption capacity make them well-suited for the premium pet food market, while their amino acid profile and fiber content support performance in aquaculture applications.

To support the scale-up, FS has secured R$9.8 million (roughly $1.7 million) in funding under Brazil’s Mais Inovação Brasil program. The pilot will serve as a platform for testing the market in Brazil, Ecuador, and Chile, where demand for sustainable animal nutrition solutions is growing.

“With this funding, we’ll advance key steps in fungal fermentation and move toward industrial-scale production,” said Daniel Lopes, FS’s Vice President of Sustainability and Business Development. “This pilot allows us to test both the technology and the market, laying the groundwork for larger-scale implementation.”

Looking ahead, the companies envision an industrial plant capable of producing 10,000 tonnes of mycoprotein annually—a capacity that would position PEKILO® as a major new entrant into Latin America’s animal protein market. The project also underscores how circular economy principles can be embedded into existing agri-industrial systems, turning by-products into high-value, functional ingredients.

The Brazilian launch is part of Enifer’s broader international strategy. In Finland, the company is finalizing its first full-scale production facility with €33 million ($37.7 million) in backing. Once operational, it will produce 3,000 tonnes of mycoprotein per year, primarily for European pet and aquafeed markets.

As the need for resilient, low-footprint protein sources grows, Enifer’s expansion signals an increasing appetite for fermentation-based solutions that align with both industry needs and environmental goals—now reaching across continents and commodity chains.