Struggling biotech company Novonutrients shuts down operations, explores options for selling assets: "The innovation's untapped promise endures"
In the ever-evolving world of alternative protein sources, a global engineering company named GEA has joined the fray, investing significantly in gas fermentation technologies for food and feed production. This move comes as several startups, such as Calysta, Circe, Solmeya, Air Protein, Solar Foods, Aerbio, Unibio, and Jooules, have already been exploring this innovative approach.
GEA's commitment to new food production is evident in their dedicated infrastructure and business lines focused on precision and biomass fermentation, cultivated meat, and other alternative protein methods. Their recently opened Advanced Technology Center (ATC) in Janesville, USA, features pilot-scale bioreactors and process technology critical for scaling alternate proteins, including those produced by gas fermentation processes.
The company's strategic approach involves bridging the gap from lab innovation to industrial scale production. They offer technology such as perfusion-based fermentation, aseptic filling, membrane filtration, and spray drying, all applicable to gas fermentation-derived proteins. GEA works closely with startups like Solar Foods, as well as others in the cultivated and precision fermentation space, to accelerate industrial scalability and improve cost efficiency.
Meanwhile, California-based gas fermentation company NovoNutrients has entered the Assignment for the Benefit of Creditors (ABC) process, an alternative to bankruptcy. The firm, founded by Brian Sefton and Russell Howard, had raised an $18 million series A round led by Woodside Energy and CM Venture Capital in July 2024. NovoNutrients captures industrial CO2 emissions and combines them with hydrogen to produce a protein ingredient called Novotein for aquaculture, petfood, and human nutrition markets.
The ABC process offers a chance to acquire proven gas fermentation technology with broad, multi-sector applications. David Tze, former CEO of NovoNutrients, noted that the technology's potential remains unchanged, but the transformation of how we think about carbon and protein requires sufficient capital.
Scaling the technology is indeed expensive, a challenge faced by many companies in this sector. However, using gases instead of sugars to feed microbes can lower input costs, simplify sterilization, allow for longer campaigns, and potentially leverage waste or byproduct gases. This approach could make gas fermentation a more viable and sustainable option for the future of protein production.
In a shifting investment climate, NovoNutrients' decision to seek the ABC process underscores the financial challenges faced by companies in this sector. Meanwhile, GEA's continued investment in gas fermentation technology suggests a growing industry commitment to finding affordable, sustainable sources of "green" hydrogen for alternative protein production.
For those interested in the assets and bidding process of Arkeon, an Austrian 'protein from air' startup that has filed for insolvency, they are advised to contact Forrest Reineke at Armanino Advisory LLC. Further reading on Arkeon's CEO postmortem, gas fermentation's future in sustainable protein, Unibio's reactor design, Calysta's green promise for food and feed, and conversations with Aerbio, Solar Foods, and Jooules, may provide valuable insights into this evolving industry.
As the race for sustainable protein sources continues, it's clear that companies like GEA are playing a crucial role in advancing gas fermentation technology for food and feed production, offering a promising future for the industry.
- GEA, a global engineering company, has invested significantly in gas fermentation technologies for food and feed production, joining startups like Solar Foods and Aerbio in this innovative approach.
- Environmental science and technology are at the forefront of GEA's dedication, as they focus on precision and biomass fermentation, cultivated meat, and other alternative protein methods.
- Financing for these progressive ventures is crucial, and personal finance and wealth management agencies might consider investing in GEA's initiatives for a sustainable future.
- The industry-scale production of alternative proteins presents challenges, including high costs for scaling technology, a challenge highlighted by NovoNutrients' recent seeking of the Assignment for the Benefit of Creditors (ABC) process.
- Data and cloud computing play a significant role in this sector, as companies optimize their processes by analyzing valuable data from pilot-scale bioreactors, such as those found in GEA's Advanced Technology Center (ATC) in Janesville, USA.
- Real-estate investments in infrastructure for gas fermentation technology production could yield returns over the long term as the demand for sustainable protein sources and alternative protein methods grows.
- With the ABC process offering an opportunity to acquire NovoNutrients' proven gas fermentation technology, and companies like GEA continually investing in the field, the gas fermentation industry shows promising potential for environmentally friendly hydrogen sources in the future of protein production.
