Cirkulär awarded € 226 000 to upcycle forest-based industry waste streams into multiple high-value products

Lund, Sweden – After launching its first product this autumn – a protein-based ingredient for fish feed produced from forest-based industry side streams, becoming the first in the world to commercialize mycoprotein for aquaculture – 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.

This project reinforces Cirkulär’s 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,” says 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.

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.

For more information, please contact:
Eric Öste, CEO of Cirkulär, eric.oste@cirkular.bio

About Cirkulär
Cirkulär is a Lund-based biotech company developing sustainable ingredients from industrial side streams. The company launched its first product, Mycomeal, in October 2025 – a sustainable protein for fish feed – becoming the first in the world to commercialize mycoprotein for aquaculture. By transforming low-value industrial byproducts into high-value functional ingredients. Cirkulär contributes to a more resource-efficient and circular bio-based industry.

Cirkulär is a member of SmiLe Venture Hub.

https://cirkular.bio/

---

---