On 19th September 2022 Nutrition Technologies completed an equity venture round of US$ 20 million. The round was led by PTT Ventures and supported by Sumitomo Corporation, ING Sustainable Investments, Mandala Capital, as well as continued participation from existing investors: Openspace Ventures, SEEDs Capital and Hera Capital. The round was advised by ING Corporate Finance. The proceeds will be used to fund an expansion into new markets; launch new products; accelerate R&D; and create new strategic partnerships.
“Aside from growth in clean-energy, PTT is expanding its portfolio into new businesses corresponding to global trends, sustainability, and social responsibility. We look forward to partnering with Nutrition Technologies to support their next phase of growth,” said Dr. Buranin Rattanasombat, Senior Executive Vice President, Innovation and New Ventures, PTT Public Company Limited. “Commercial insect protein production is one of the most important innovations of the past few years, with the potential to disrupt the animal feed and fertiliser sectors and solve multiple issues the world is currently facing,” he added.
Global food security has steadily declined for the past few decades and has been significantly tested in recent years through extreme weather events and war. Population growth has fuelled the current 1.2 billion tonnes demand for animal feed ingredients, which has severe environmental consequences both for land and sea. There is a growing protein deficit, with supplies of traditional proteins for animal feed, such as fishmeal and soybean meal, stagnating due to overfishing and deforestation.
“We are very excited to partner with Nutrition Technologies, an innovative company that has superior technology to produce sustainable protein. We believe insect protein is one of the most important recent solutions to protein production, contributing to solving various environmental issues and addressing several Sustainable Development Goals (SDGs). We will utilize our business platform and customer network to promote and expand the BSF derived products” said Masahito Uno, GM Life Science Division, Sumitomo Corporation.
The insect sector has gathered increasing attention over the past few years, with the global insect protein market alone estimated to be worth US$343 million in 2021, and expected to grow with a CAGR of 26.49% to reach US$1.3 billion by 2027. As a sustainable solution to help minimise multiple unsustainable practices, the sector as a whole has seen investments totalling nearly US$1 billion, but with multiple technological hurdles, few companies are yet to reach industrial scale, let alone profitability.
“Nutrition Technologies fits well in the investment strategy and portfolio of ING Sustainable Investments, as we seek to assist sustainable companies in scaling their operations. Together with our consortium partners we are also keen to support the company in capitalising on various opportunities in the fast-growing European and Asian markets of alternative proteins” said Mark Weustink, Head of ING Sustainable Investments.
Since 2015, Singaporean agri-biotech company, Nutrition Technologies, has been creating a commercial replica of the natural decomposition process, using their proprietary growth inoculants and black soldier flies (Hermetia illucens) to turn low-grade crop & food waste into highly sought after animal feed ingredients and biofertilisers.
“Nutrition Technologies has led the way in delivering black soldier fly solutions at scale and at a price that is competitive on the global markets. It means they are already providing a viable alternative to existing and less sustainable feed options. In achieving that, the team has demonstrated exceptional executional capabilities. Going forward, we have high conviction in their expansion plans” said Hian Goh, Founding Partner, Openspace Ventures.
Organic matter and food waste in landfills are significant contributors of greenhouse gas emissions, and the overuse of chemical fertilisers is severely reducing the productivity and resilience of crucial agricultural soil. “It is great to welcome our new investors, who collectively bring vast expertise and experience to help us realise our vision. We are also humbled by the continued support provided from our existing shareholders,” said Tom Berry, Co-CEO and Co-founder, Nutrition Technologies.