Sustainable Fungal Biorefineries: Conversion of Industrial Side-Streams into Proteins and Industrially Relevant Biopolymers

Purpose and objectives 

The purpose of the project is to further develop and scale up the current process so that the fungal biomass can be fractionated into several high-value products: protein concentrates, beta-glucans, CGC, and chitosan. In a pilot facility, a new fractionation method will be tested and optimized, which is expected to reduce energy demand. The project will also conduct life cycle assessments to compare the environmental impact with conventional production from soy and shellfish. 

The goal is to demonstrate that fungal-based products can become a sustainable alternative to existing solutions. In the short term, the project will develop prototypes of proteins, fibers, and chitosan for use in fish feed, water treatment, and as food coatings. In the longer term, the process can be replicated at additional pulp mills and other fermentation facilities, thereby contributing to a more circular bioeconomy in Sweden and Europe. 

Why this is important 

For society, a successful project brings several benefits: reduced dependence on imported soy and shellfish, new uses for forest-based industrial side streams, lower climate impact from protein and biopolymer production, and new jobs and business opportunities within the bioeconomy. The project thus represents an important step toward transforming industrial by-products into resources that strengthen both environmental sustainability and competitiveness. 

Expected results 

The project is expected to result in a validated and energy-efficient pilot process for fractionating fungal biomass into several high-value products: protein concentrates, beta-glucans, chitin–glucan complexes (CGC), and chitosan. By using sulfite liquor from pulp mills as a raw material, the project demonstrates how industrial side streams can be upgraded from low-value energy use to resource-efficient and commercially relevant products. 

A key outcome is to demonstrate that fungal-based proteins and biopolymers can be produced entirely without animal-derived raw materials, without allergen labeling, and without the use of harsh chemicals—that is, chemicals that may be harmful to animals or humans. Compared with conventional processes based on soy, shellfish, and fungi, the new process is expected to deliver significantly lower climate impact, reduced energy demand, and improved supply security through continuous year-round production. 

The project also aims to deliver prototypes of functional products tailored for applications in fish feed, water treatment, and food coatings, as well as life cycle assessments that quantify the environmental benefits. Overall, the results are expected to lay the foundation for scale-up and implementation at additional pulp mills and fermentation facilities, both nationally and internationally.