Nutrition Technologies has opened its first industrial-scale insect protein factory in Iskandar Puteri, Johor, Malaysia. It has also raised additional funds to prepare for next stage of growth. Since 2014, the Singapore-based agri-food tech company has been using the black soldier fly (Hermetia illucens) to turn low-grade food waste and organic by-products into proteins and oils. The new factory was commissioned in December 2020 and is now scaling-up its production.
“When fully operational, our new plant will produce 16,000 tonnes of insect products per year comprising 12,000 tonnes of insect frass, 3000 tonnes of insect meal and 1000 tonnes of insect oils. This will divert 80,000 tonnes of waste per year from landfills and save tens of thousands of pelagic fish in the oceans, by providing a substitute for fish meal†said Co-CEO and co-founder Nick Piggott.
The insect protein sector has gathered increasing attention over the past few years with investments totalling nearly USD1billion. In 2020, it was estimated that only 10,000 tonnes of insect meal was produced by companies, across the globe. However, this is expected to increase over the coming years as more factories come online.
Nutrition Technologies’ new plant is a result of five years of R&D and technology development. Their vertical insect production system is optimised for the tropical conditions in Southeast Asia and uses bespoke automated equipment and Industry 4.0 principles to ensure strict biosafety and high-quality standards. As a zero-waste facility, Nutrition Technologies is aiming for the facility to be carbon negative at full capacity. “Nutrition Technologies is committed to deliver sustainable products that meet the strict requirements of the animal feed market, as well as being low cost and environmentally friendly.†said Co-CEO and co-founder Tom Berry.
Nutrition Technologies products offer a range of positive impacts on animal health and performance. These are tailored to answer the needs of the animal feed industry and support the necessary growth in fish and poultry production to support the world’s growing population. “Our clients are looking for natural ways to reduce antibiotics, and efficiently promote animal health. The black soldier fly larvae has a unique fatty acid profile and bioactive compounds such as antimicrobial peptides and has a key role to address these issues.†said CTO Martin Zorrilla.
USD 5m funds raised
On February 26 2021, Nutrition Technologies closed a recent funding round of USD 5m, led by Hera Capital, and supported by existing investors, Openspace Ventures and SEEDS Capital (the investment arm of Enterprise Singapore). This will be used to fund new R&D projects as well as prepare the company for entry into new markets in Southeast Asia. To date, Nutrition Technologies have raised a total of USD14 million.
“We are very excited to partner up with Nutrition Technologies to support their growth. Commercial insect production is one of the most important innovations of the last decade, with the potential to disrupt the animal feed sector and solve multiple issues the world is currently facing.†said Sebastien Guillaud, Managing Partner, Hera Capital.
“Nutrition Technologies has a great team led by highly committed and capable founders. Despite the COVID-19 challenges they were still able to build their new factory and continue to innovate.†said Hian Goh, Founding Partner, Openspace Ventures.
“The insect protein industry presents significant potential and opportunities, and also provides a more sustainable alternative to animal feed. We are excited to continue our support for Nutrition Technologies as they embark on their next phase of growth.†said Geoffrey Yeo, General Manager of SEEDS Capital.
Next steps, Series B & new markets
Nutrition Technologies is planning to raise its Series B funds in Q3 later this year. This round will be used to increase production capacity 10-fold, in order to meet its current pipeline demand. They are looking to expand production in Malaysia whilst also establishing new industrial scale plants in Thailand, Vietnam and Indonesia. As the company will continue to focus on research and development, a R&D centre will be established in Singapore, as an anchor for the company to lead innovation and connect with industry partners and investors.
This expansion will boost Nutrition Technologies’ positive environmental impact, through upcycling more than 500,000 tonnes of waste a year. This is significantly contributing to improved ocean health and providing more than 600 jobs in low-income areas across the region. “We are motivated by the positive environmental and social impacts we deliver through our insect protein plants.†said COO Charlie Carter. “We aim to be a global leader in the insect space. Over the next 10 years we plan to build a large network of insect farms across the region, supplying a new high quality insect meal to support the growth of aquaculture and livestock production in Asia.†said Berry.
