Estonian biotech start-up ÄIO has secured €1 million in funding. The fresh funding will enable the company to scale greener alternatives to unethical and polluting oils in cosmetics products.WHO: Founded in 2022 as a spin-off from Tallinn University of Technology, ÄIO uses biomass and precision fermentation to transform industrial side streams into nutrient-rich oils and fats. The process requires 97% less land and 90% less water than conventional palm oil production, according to company data. For the cosmetics sector, ÄIO’s solutions offer an eco-conscious, high-performing, and cost-effective alternative to palm and coconut oil, commonly used in a wide variety of personal care products. Its nourishing properties and additional bioactive benefits make it a natural alternative to petroleum-derived mineral oils, which can be harmful to the skin and cause environmental pollution.WHY: The grant will support a three-year research and development project focused on microbial fermentation-derived lipids and their derivatives, specifically for use in cosmetic and personal care ingredients.IN THEIR OWN WORDS: “This grant represents more than funding, it's validation from the Estonian government that our technology can fundamentally reshape how cosmetics ingredients are produced,” says Nemailla Bonturi, co-founder and CEO at ÄIO. “We’re now ready to show we can scale that impact on the international stage, bringing smarter, more sustainable ingredient alternatives to an industry that touches the everyday lives of all of us.