Cirkulär, together with the University of Borås and Kitcoat, has been awarded €226,000 to upcycle forest-based industry waste streams into multiple high-value products. In addition to its main product Mycomeal, a whole-mycelium protein ingredient for aquafeed, Cirkulär will now develop new processes and assess the potential to develop product streams from the same fungal process.
Photo: Cirkulär
After launching its first product in late 2025 – a protein-based ingredient for fish feed produced from forest-based industry side streams – Cirkulär, together with the University of Borås and Kitcoat, has now been awarded € 226,000 from FORMAS to investigate how additional high-value substances can be obtained through the same process. The company states that it is also the first in the world to commercialize mycoprotein for aquaculture.
Cirkulär says that this project reinforces long-term vision: Using a filamentous fungus and an industrial side stream to develop several sustainable product streams. It marks an important step toward establishing a full-scale integrated fungal biorefinery, where a single bioprocess supports multiple product lines.
“This project will demonstrate how much value can be unlocked simply by making better use of existing side streams. Until now, our focus has mainly been on the protein component for fish feed, but we will now evaluate other valuable compounds and identify where they offer the strongest impact. This is not just R&D, it’s a strategic move toward long-term growth and a more circular bioeconomy,” comments Eric Öste, Founder and CEO of Cirkulär.
FOUR KEY PRODUCT STREAMS UNDER DEVELOPMENT
In addition to its main product Mycomeal, a whole-mycelium protein ingredient for aquafeed, Cirkulär will now develop new processes and assess the potential to develop the following product streams from the same fungal process:
• Protein isolates
Applications: Food and feed ingredients; enabling reduced reliance on imported soy and fishmeal.
• Chitin-glucan complexes (CGCs)
Applications: Natural dietary fibers for food and beverages; cosmetic and skincare ingredients.
• Chitosan
Applications: Biodegradable packaging coatings, wound-care materials and water treatment. Fungal chitosan offers a more sustainable alternative to crustacean-derived chitosan, currently the industry standard.
• Beta-glucans
Applications: Immune-supporting ingredients in animal and functional food components.
According to the announcement, the project builds on a previous VINNOVA-funded project and enables Cirkulär to advance from a single-product model to a diversified portfolio with stronger market resilience and clear environmental benefits.
Initial testing will take place at the company’s demonstration facility, producing small quantities of each ingredient to evaluate their performance and market potential.
