September 20, 2021

By Lynda Kiernan-Stone, Global AgInvesting Media

Innovative biotechnology company Calysta announced it has completed its $39 million Series D-1 round in support of the global expansion of its natural, sustainable, and traceable feed ingredients for fish, livestock, and pets. Led by bp ventures, the round was also joined by Aqua-Spark, Adisseo, and WTI, along with other existing Calysta inventors.

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 consisting 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.

As an answer, 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.

“Global food and protein supply chains have never been more challenged, thanks to increasing land and water scarcity coupled with an ever-growing global population,” said Thomas Huot, Ph.D., COO, Calysta.

“FeedKind makes more from less by utilizing the abundant natural gas resources to produce feed for fish, livestock and pets, reducing the pressure on our oceans and arable land for non-animal feed production.”

Currently, Calysta operates an R&D facility in the UK, and is nearing the completion of the world’s first commercial FeedKind production facility in China through its 50/50 joint venture with Adisseo. Expected to come online late next year, this facility is projected to have 20,000 tons of initial production capacity, with a final goal of 60,000 tons in order to meet the growing demand for Calysta’s single-cell protein in China.

The company stated that the funding secured from this round will support scoping and pre-development stage activities for its next manufacturing site outside of Asia, which will support the sustainable growth of the aquaculture industry in key markets through the supply of feed rations that do not compete with the human food chain.

“We look forward to working closely with our strategic partners at bp and Adisseo as we expand our FeedKind production to the world,” said Huot. “Calysta will benefit from bp’s operational excellence and focus on delivering sustainable energy. Meanwhile Adisseo is accelerating commercialization of the product and supporting sales and marketing efforts in Asia.”

Calysta’s patented, state-of-the-art fermentation process uses no arable land and negligible amounts of water, creating the ability to disconnect the aquaculture industry from its dependence on fishmeal made from small, wild-caught fish or soy protein. The company also noted that its FeedKind protein has the potential to meet the growing global demand for protein while avoiding deforestation, allowing for the restoration of abandoned and unproductive land.

“We believe Calysta’s innovation offers an opportunity to deliver sustainable protein for the planet and supports bp’s strategy of creating new markets in which gas can play a material role in delivering a more sustainable future,” said Meghan Sharp, head of bp ventures. “That’s why in 2019 bp ventures invested in Calysta and its FeedKind technology, and today we are excited to build on that investment with an additional $10 million commitment.”

At the time,  Alan Shaw, Ph.D., and CEO, Calysta, said, “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.”

And with this latest funding, Calysta is well on its way toward achieving that scale. 

– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com.