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Source: European Investment Bank

• Berlin-based food tech company Formo develops fermentation processes to produce cheese alternatives.
• The €35 million EIB investment is backed by the European Union’s InvestEU guarantee.
• This venture debt loan brings Formo’s total financing to over €135 million.

The European Investment Bank (EIB) is providing a €35 million loan to German food tech company Formo. This EIB quasi-equity venture debt loan will enable Formo to further develop and scale up its fermentation processes for producing alternatives to dairy and egg-based products.

Founded in Berlin in 2019, the startup uses two similar technologies in its processes. The first is micro-fermentation, in which naturally occurring micro-organisms such as Formo’s Koji mushrooms are used to produce tasteless proteins without modifying the micro-organism itself. Koji proteins are excellent for producing cheese without using animal products.

Its pioneering work in precision fermentation has also enabled Formo to develop bioidentical milk proteins, particularly caseins with good melting properties. Traditional fermentation is combined with the latest synthetic biotechnologies to produce caseins efficiently and on an industrial scale. Formo is currently undergoing the approval process for marketing its second-generation (precision fermentation) products in the United States, and is also working towards conducting the relevant new food process in its European home market.

As a first step, Formo has already launched its micro-fermentation product line, with several flavours of the Frischhain product distributed via METRO and REWE supermarkets in Germany and Austria since September 2024. Other cheese alternatives (from Greek feta to white and blue cheese) and an egg substitute for scrambled eggs and baked goods are currently in the scaling process.

The initial target market for the products are consumers concerned about the impact of conventional food production on the environment, animal welfare and health. Formo’s products should eventually be everyone’s first choice, regardless of their specific diets and nutritional philosophies.

“Developing and scaling up the industrial production of fermentation-based foods is a highly innovative approach to meeting the growing demand for protein-rich dairy and egg substitutes that are free from animal products,” said EIB Vice-President Nicola Beer. “By working with Formo, the EIB is supporting innovative solutions for sustainable consumption while also backing a growth-stage European startup.”

“We are very pleased that the EIB is confident of the strength and scalability of our innovation,” said Formo’s founder Raffael Wohlgensinger. “We want to show that innovative European companies can move from smart ideas to scaling up and successfully marketing their technologies. We also know that fermentation processes will make a decisive contribution to the resilience of the European food system. This financing sends a strong signal across Europe and confirms our strategy.”

The EIB loan is supported by the InvestEU programme, which is expected to unlock €372 billion of additional investment in new technologies by 2027. The operation is also in line with the InvestEU objective of promoting research, development and innovation.

This agreement follows the $61 million in Series B funding that Formo secured in September 2024, bringing the company’s total financing to over €135 million. It is therefore in a good financial position for meeting its ambitious growth targets.

Background information

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.

Formo is an innovative fermentation startup that is rewriting the future of cheese. Founded in 2019 by Raffael Wohlgensinger and with locations in Berlin and Frankfurt, Formo uses state-of-the-art fermentation technologies to develop cheese alternatives that are free from animal products and can be enjoyed sustainably. Formo’s Koji protein-based cheese alternatives free from animal products have been commercially available in Germany and Austria since September 2024. More information is available at www.eatformo.com

The InvestEU programme provides the European Union with long-term funding by leveraging substantial private and public funds in support of a sustainable economy. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. InvestEU brings EU financial instruments together under one roof, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners who invest in projects using the EU budget guarantee of €26.2 billion. This guarantee increases their risk-bearing capacity, thus mobilising at least €372 billion in additional investment.

EIB venture debt is a quasi-equity investment product suitable for early and growth-stage ventures, combining a long-term loan with an instrument linking the return to the performance of the company. The EIB has made venture debt investments totalling €6 billion since 2015, supporting more than 200 companies and completing over 50 exits. With the backing of InvestEU, the EIB aims to support European ventures and scale-ups in the clean tech, deep tech and life sciences sectors.

Source: Switzerland – Department of Foreign Affairs in English

In 2023, business enterprises invested CHF 18 billion in their R&D activities in Switzerland, an annual increase of 3.5% over 2021, which was the last time the survey was carried out. At almost CHF 5.5 billion, the ‘pharmaceuticals’ sector remains the biggest investor, despite an average annual decline of 6%. Nearly 69 000 people took part in R&D activities, a quarter of them women. These are the main results of a study carried out by the Federal Statistical Office (FSO) in partnership with economiesuisse.

Source: European Investment Bank

• The Reutlingen utility company (Stadtwerke Reutlingen) will receive an EIB loan worth €70 million to invest in the area’s electricity and district heating networks.
• As part of the energy transition, modernising and digitalising the electricity grid is expected to improve the integration and distribution of wind and solar power.
• The local district heating network in and around Reutlingen will also be expanded.

The European Investment Bank (EIB) is supporting Stadtwerke Reutlingen with €70 million in financing for its extensive network investment plan.

Most of the investment is being provided to modernise the electricity grids in the area. The investment plan also involves replacing or installing new power cables and overhead lines of all voltage levels by the end of 2027. Substations also need to be modernised. Modern grid components are also required to automate and digitalise grid control.

The investments are needed to add more local solar and wind power producers to the grid, to enable consumers to connect heat pumps and chargers, and to further the digital transition.

The Federal Network Agency reports that €327.7 billion in investment is required in electricity grids across Germany by 2045, as a result of higher electricity demand and a sharp increase in renewable electricity generation. This figure includes investment in the distribution networks of municipal utility companies. In addition, distribution networks need to be made “smart” to further increase technical maximum load thresholds without causing damage, to ensure fast connection between heat pumps and the grid, and to coordinate feed-in and take-out on a local level. This requires the use of additional telecommunications and computing equipment and technology.

In Reutlingen, investments are also planned to expand the district heating network to replace gas and oil heating systems, allowing more consumers in and around Reutlingen to connect to the grid.

The project’s overarching aim is to ensure that power supply in the Reutlingen area remains reliable and safe as electricity demand grows, while also decarbonising heating systems.

“The green transition requires additional investment in grid infrastructure. Our electricity grids need to be more modern and efficient to keep up with the rapid expansion of renewable energies and growing electricity demand in an increasingly electrified world,” said EIB Vice-President Nicola Beer. “By financing projects run by municipal utility companies such as the one in Reutlingen, we are ensuring that electricity supply is reliable and safe for local residents and businesses.”

“EIB support plays an important role in helping the owners and operators of electricity and heating networks like us finance our plans and respond to the demanding investment challenges that lie ahead. Our objective is to improve the quality of life in Reutlingen and the surrounding region in a sustainable manner by improving access to reliable, clean and locally generated energy. To achieve this goal, we must expand both our electricity grid and district heating network at the same time,” says Managing Director of Stadtwerke Reutlingen GmbH Jens Balcerek.

Background information

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.

All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.

Stadtwerke Reutlingen

Stadtwerke Reutlingen GmbH, together with its affiliated companies FairEnergie GmbH, FairNetz GmbH, Reutlinger Stadtverkehr companies and Kraftwerk Reutlingen-Kirchentellinsfurt AG, aims to contribute to a high quality of life and a strong economy in Reutlingen and the surrounding area. With around 750 employees, the group uses its expertise every day in its commitment to benefit residents’ well-being.

FairEnergie GmbH, FairNetz GmbH, the Reutlinger Stadtverkehr companies and Kraftwerk Reutlingen-Kirchentellinsfurt AG are high-performing energy, water and public transport providers. In addition, Stadtwerke Reutlingen operates four swimming pools in Reutlingen.

Stadtwerke Reutlingen GmbH provides its associated companies with essential business services. These are: business management, human resources and training, accounting services and financial control, as well as material management and IT services. In addition, the group is one of the largest training providers in Reutlingen.

Stadtwerke Reutlingen works with the city council on important sustainability issues in and around Reutlingen, with the aim of addressing climate issues in the area.

Source: European Investment Bank

• CESEE region has doubled its R&D personnel and increased investments in intellectual property from 10% to 12% over the past decade
• CESEE productivity growth, key to strengthen the competitive position of the region, has outpaced that in North and West EU. Recent trends are showing signs of deceleration

At the Invisso Conference in Vienna, the European Investment Bank (EIB) has released a comprehensive working paper examining the state of innovation in Central, Eastern, and South-Eastern EU (CESEE) countries, in the context of the EU long term competitiveness’ discussions. This paper highlights the region’s significant progress in enhancing innovation capacity over the past decade, while also addressing persistent challenges that threaten its growth and competitiveness.

Stimulating innovation across the CESEE region faces numerous challenges, many of which are not unique to the region. These challenges include increasing the availability of the skills necessary for innovation, securing adequate risk capital, adopting cutting-edge technologies, all while improving the overall business environment. Labour shortages are already prompting some firms to shift their innovation activities from the North and West of the EU to the CESEE region, and within the CESEE region to its less developed areas.

“Convergence requires significant support for innovation investments, including increasing R&D and the skills of workers, in CESEE region. That is why, at the EIB, we are committed to supporting the innovation landscape in CESEE countries,” stated Kyriacos Kakouris, Vice President of the EIB. “Our collaboration with local stakeholders and international partners from the public and private sector is essential to overcoming the barriers to innovation and ensuring that the region can compete on a global scale.”

The working paper reveals that businesses in the CESEE region have doubled their R&D personnel and it increased investments in intellectual property from 10% to 12% over the past decade; moreover, labour productivity in the region, at 1.9% per annum, grew significantly more than in North and West Europe over the past decade. However, CESEE economies still face a severe skills shortage. In addition, only eight of the world’s largest 2,500 R&D investors are headquartered in the CESEE region. Germany alone filed nearly 25,000 patents with the European Patent Office in 2023 (compared to only 1,600 in the CESEE region).

The report also highlights that R&D spending in the CESEE region is about half of that in the North and West of the EU, with businesses in CESEE spending only 0.8% of GDP on R&D compared to 1.8% in other regions. Innovation activities in CESEE are largely concentrated in manufacturing, ICT and pharmaceuticals, with significant disparities across firms and geographies. While productivity growth in the region has outpaced that in North and West EU, recent trends are showing signs of deceleration. “Strengthening innovation is crucial for raising living standards and for strengthening the competitive position of the CESEE region,” said Debora Revoltella, EIB Chief Economist. “Our findings underscore the need for targeted policies to improve the availability of skilled labour and secure adequate risk capital (venture capital for instance), which are essential for fostering innovation-driven growth and upgrade the growth model of the region.”

Dashboards included in the paper provide an overview of country-specific innovation characteristics, illustrating how research-intensive sectors contribute significantly to GDP growth across different CESEE countries.

The working paper – which is part of a joint study about CESEE competitiveness of the Oesterreichische Nationalbank (OeNB), the Vienna Institute for International Economic Studies (wiiw) and the European Investment Bank (EIB) – is available here.

Background information

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.

All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.

Source: European Parliament

Source: European Parliament

Source: European Parliament

Source: Switzerland – Department of Foreign Affairs in English

For years, start-ups have been able to count on the support of the business incubators glatec and Startfeld. They accompany Empa’s young companies on their path to independence – and do so extremely successfully, as the 37 spin-offs founded to date show.

Source: European Investment Bank

• This investment will strengthen the safety, sustainability and resilience of railway infrastructure and networks in Spain.
• The loan highlights the EIB Group’s commitment to a more sustainable transport model, such as railways, and contributes to its strategic priorities of consolidating its position as the EU Climate Bank, and to further economic, social and territorial cohesion.
• The loan will allow Adif and Adif AV to undertake the renewal of key components in the railway infrastructure and the updating of communications systems, among other actions.
• As part of the financing operation, the EIB will work with Adif to support the climate change adaptation of its infrastructures in the high speed and conventional networks by providing advice through EIB Advisory Services.

The European Investment Bank (EIB) and Adif AV have signed a €350 million loan to invest in conventional and high-speed railway infrastructure in Spain. Investments will target safety, sustainability and resilience, as well as renovation works and general improvements. As a result of this investment, a important number of projects will be undertaken across the country. This will improve the quality of services and make railway transport more attractive, furthering the use of more sustainable transport means.

Total investments supported by the project amount to over €830 million in investment. This will be used to update key components of the railway infrastructure, the upgrading of communications systems through interoperable technologies and the implementation of plans to improve resilience when operational and climate-related issues arise, minimising potential traffic disruptions.

On the high-speed network, the investment programme includes the installation of anti-fall safety barriers on roads, the improvement of drainage systems and access to technical installations and the installation of anti-vandalism modules, as well as the renovation of telecommunications, security and energy systems.

On the conventional network, the planned investment schemes incorporate, among others, a programme of removal of level crossings, renewal of tracks and other infrastructure elements, installation of telecommunications equipment, as well as the extension of the GSM-R (Global System for Mobile Rail Communications) system to more lines.

“The cooperation with the EIB is essential for Adif and Adif AV to continue to promote railways as a sustainable and resilient means of transport at the heart of the new mobility model demanded by the citizens. The loan signed today will enable us to maintain the highest quality standards already offered by our railway network to users, through a range of renovation and upgrading measures for the different railway systems”, said Pedro Marco de la Peña, President of Adif and Adif AV.

The loan highlights the EIB Group’s strong commitment to developing more sustainable transport solutions, such as railways, in full alignment with the Bank’s role as the EU Climate Bank. In addition, a significant part of the investment will take place and benefit cohesion regions – with per capita income below the EU average – thus improving connectivity with other regions as well as boosting economic and territorial cohesion. Therefore, the project also makes a significant contribution to the EIB Group’s strategic priority of contributing to economic, social and territorial cohesion.

“This new financing agreement with Adif – a strategic partner for the EIB – will enable important investments to be made in Spanish railway infrastructure, reinforcing its safety, resilience and sustainability,” said EIB Director General and Head of EU Lending and Advisory Jean-Christophe Laloux. “A safe and reliable rail network is essential to maintain the attractiveness of railways over more polluting forms of transport, with clear benefits for the economy and the environment.”

Within the context of this operation, the advisory services of the EIB, EIB Advisory, and Adif have put in place a strategic partnership with a strong focus on climate change adaptation for the conventional and high-speed networks. The aim is to better integrate climate change impact analysis, by assessing the costs and benefits associated to the relevant investments to improve the resilience of Adif infrastructure to climate events.

The EIB has enjoyed a long-term partnership with Adif. Cooperation between the EIB and Adif has led to investment operations to extend, maintain, modernise and ensure the safety of Spanish rail infrastructure. More recently, in July 2024, the EIB and Adif AV signed a €430 million loan to support the “Y vasca” high-speed rail line. This is a very significant project to improve rail links between the main Basque cities, a s well as with other Spanish and European cities. To date, the EIB has invested over €13.5 billion in high-speed rail in Spain.

Background information

European Investment Bank

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, consisting of the European Investment Bank and the European Investment Fund, reported total financing signatures in Spain of €11.4 billion in 2023, approximately €6.8 billion of which went to climate action and environmental sustainability projects. In total, the EIB Group signed €88 billion of new financing in 2023.

Adif AV

Adif Alta Velocidad leads the transition towards a new mobility model, more sustainable, integrating, multimodal, safe and intelligent, as the leading infrastructure investor in Spain. The company deploys railway network to complete high-speed axes and trans-European transport corridors. The liberalisation of passenger rail transport, digital transformation and a large-scale cultural change are some of the challenges faced by the company to consolidate the railway as the mode of transport of the 21st century. Adif AV is an entity belonging to the Ministry of Transport and Sustainable Mobility.