Finnish FoodTech company Happy Plant Protein marks a significant step towards commercialisation as its patented dry extrusion technology is deployed in a new agriculture-based plant protein production facility in Latvia, enabling local production of plant-based protein ingredients.
The facility will be the first of its kind in Latvia and Europe to process locally grown crops into high-value plant-based protein ingredients using Happy Plant Protein’s proprietary technology — marking a significant step towards bringing protein production closer to primary agriculture in the Baltic region. The model enables regional production and shorter supply chains, while creating new revenue streams for agricultural stakeholders and strengthening local value creation at the source.
The project represents a major milestone on three levels: it establishes industrial-scale plant protein production in Latvia for the first time, introduces a simpler and more scalable production model for the food industry, and marks the first industrial deployment of Happy Plant Protein’s technology. It also demonstrates how decentralised, crop-based protein production can be implemented across agricultural regions in Europe.
The project represents a greenfield investment of approximately €6 million — significantly lower than traditional plant protein isolate plants, where investment levels can reach up to €150 million. Construction is expected to take approximately one year, with production scheduled to begin in early 2027. The investment is partly supported by EU funding.
The plant will process locally grown crops, such as faba beans, oats, and peas, into plant-based protein ingredients for the food industry. It will primarily utilise Latvian and Baltic raw materials, supplying customers across the Baltics, Europe, and the Nordic region. By enabling production closer to primary agriculture, the model creates new value streams for farmers, strengthens supply chain resilience, and supports a decentralised, scalable approach to plant protein production.
From local crops to high-value protein ingredients
Happy Plant Protein is responsible for implementing the technology and optimising raw materials to ensure consistent, high-quality protein output, while the local partner leads the investment and plant development. Happy Plant Protein licenses its proprietary dry extrusion technology to the project, enabling the local partner to deploy and operate the production facility using HPP’s system.
“This is a significant milestone for us, demonstrating that our technology works at industrial scale and creates value directly at the level of primary production. Its greatest advantage is simplicity. We produce textured vegetable protein directly from flour in a one-step process, making it both cost-efficient and sustainable. This opens up new opportunities for mills, farms, and co-operatives. The end product, TVP, is a key ingredient for food industry R&D, enabling the development of new, delicious, and healthier plant-based and hybrid food products for consumers,” says Jari Karlsson, CEO & Co-founder of Happy Plant Protein.
Happy Plant Protein’s patented dry extrusion technology is a single-stage, energy-efficient process that does not require chemical inputs and uses minimal water and energy. Happy Plant Protein’s technology is based on research and development originating from VTT Technical Research Centre of Finland. The company is actively collaborating with European partners to scale its deployment. The local partner behind the investment is an agricultural company Agrofirma Lobe SIA, which will establish a dedicated entity for the project. “Our ambition is to make plant protein production more accessible and more local, ensuring that more value remains closer to the raw material producers. By enabling protein production directly from locally grown crops, we help agricultural producers move up the value chain — from low-margin raw materials to higher-value food ingredients. This creates new revenue opportunities for farmers while also strengthening regional protein self-sufficiency and reducing reliance on imported protein ingredients, ” says Raivo Dzilna, Chairman of the Board, Agrofirma Lobe SIA.
Capacity and impact
The planned production capacity of the facility in Latvia is approximately 5,000 tons annually, serving a broad regional demand for plant protein ingredients. A key differentiator of the process is that the facility is designed to operate without chemical inputs, with minimal energy use and no side streams. It enables a significantly more sustainable production model compared to conventional alternatives.
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