June 27, 2019

by Lynda Kiernan

Calysta, a leading producer of alternative protein and sustainable biological fish and livestock feed, announced a $30 million investment from BP Ventures to support the company in its goal of improving global food security. 

By 2050 the demand for food is projected to climb by 60 percent, and over the period of time between 2010 and 2050, animal protein production is expected to see growth of 1.7 percent per year, with meat production increasing by 70 percent; aquaculture output increasing by 90 percent; and dairy production increasing by 55 percent, according to the International Feed Industry Federation. Taken further if established growth rates recorded over the past 40 years are extrapolated into the future to 2050, animal protein production needs would quadruple, in theory. 

As an animal protein industry, fish farming has been an operation in contradictions, with the environmental benefits of aquaculture largely being marginalized by the use of fish feed comprised of wild-caught fish, and other animal proteins. Likewise, protein demand for adequate feed to keep pace with a growing global livestock industry is a constant concern. 

In response, Calysta has developed FeedKind™  – a sustainable single-cell protein that is produced using a proprietary, commercially viable gas fermentation process using non-GM microbes that have the ability to use methane as an energy source. Upon the completion of multiple worldwide trials, FeedKind™ has been proven to be an effective, nutritious, and safe feed ingredient that can play a key role in improving global food security.

“The problems facing our food production supply chains have never been more clear, with increasing evidence that land and water scarcity are key challenges to meeting future demand for protein,” said Alan Shaw, Ph.D., and CEO, Calysta. “FeedKind makes more from less, producing feed for livestock, fish and pets while making smarter use of our resources.”

Not only does Calysta’s FeedKind™ protein create efficiencies in animal protein production, Calysta’s process to make its product also uses no arable land and very little water; it doesn’t compete with any human food chain, and reduces the need for animal protein production to compete for resources with agricultural production systems that produce human food.

“Welcoming BP as a partner is a tremendous step forward for FeedKind protein and the best indicator yet that Calysta’s solution to food insecurity in a resource-constrained world can and will achieve global scale,” said Shaw.

This funding for Calysta follows a $40 million Series D raised by the company in May 2017 led by Japan’s Mitsui & Co. Ltd. Other investors in the round included the Singapore sovereign wealth investment fund, Temasek, and existing investors, the Dutch pure-play sustainable aquaculture fund, Aqua-Spark, Cargill, the Municipal Employee Retirement System (MERS) of Michigan, Walden Riverwood Ventures, and Pangaea Ventures.

A year before, in February 2016, the company raised a $30 million Series C that included many of the same investors: Cargill, Aqua-Spark, the Municipal Employee Retirement System (MERS) of Michigan, Old Westbury Global Real Asset Fund LLC, Walden Riverwood Ventures, and Pangaea Ventures.

Currently,  FeedKind™ is being produced at Calysta’s Market Introduction Facility (MIF) located in Teeside, England, as market development continues with the world’s leading animal nutrition companies.

“We look forward to working closely with BP as we prepare to deliver this product to the world,” said Shaw. “Calysta will benefit from BP’s operational excellence and focus on safety when deploying multiple production plants.”

– Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.