June 29, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Bio-manufacturing has great potential for decarbonization, but it also faces a range of hurdles. If successfully harnessed for key industrial sectors such as foods, fuels, materials, and chemicals, it is estimated to have the ability to mitigate at least 3 GT of carbon emissions per year by 2030. 

However, it must compete with entrenched processes that depend on fossil-based fuels and resources, animal agriculture, and deforestation. Cost parity is another major issue. In particular, the supply and cost of sugar feedstocks used to power bio-processes are an obstacle, according to California-based Hyfé, which explained that the needs of the bio-economy are forecasted to outpace supply over the next 10-20 years, adding that it is critical that feedstocks come from underutilized waste carbon streams that are cost-effective, are non-competitive with food, and do not disrupt agricultural systems. 

And while competitors are working to convert food and agricultural waste into fermentation feedstocks, Hyfé was founded by ExxonMobil and LanzaTech engineers in 2021 to take a different approach by leveraging their deep experience in wastewater treatment and fermentation-enabled waste valorization to develop feedstocks from untapped processing wastewater.

This technology stack processes nutrient building blocks from wastewater into easy-to-metabolize feedstocks that they state ease the key bottlenecks in alternative feedstock development: compositional variability, availability, and lack of data. 

Reflecting a strong belief in its work and abilities, Hyfé announced it has closed an oversubscribed $9 million Seed round led by Synthesis Capital, and including The Engine, Refactor Capital, Supply Change Capital, Overwater Ventures, X Factor Ventures and Alumni Ventures. When added to its oversubscribed pre-Seed round led by The Engine in April 2022, the company’s funding to-date is $11 million. 

“Bio-manufacturing has the potential to solve some of the most pressing challenges facing humanity, but first it needs to be made economically viable,” said Michelle Ruiz, co-founder and CEO, Hyfé. “We are building a solution that addresses a fundamental bottleneck for the bio-economy just as it’s reaching an inflection point. This historic moment is as pivotal as the invention of the steam engine, the age of science and mass production, and the rise of digital technology.”

Further explaining, the company outlined three channels of benefit provided by their technology:

~ Food and beverage companies can significantly reduce wastewater treatment costs while increasing water reuse, thereby improving resiliency and overarching operating expenses. 

~ Bio-manufacturers can gain access to more sustainable, affordable feedstocks, which account for the bulk of fermentation operating costs and are vulnerable to supply chain disruptions. 

~ The planet would benefit from greater carbon negative manufacturing beginning with diverting organic loads entering traditional wastewater treatment – a process responsible for up to 1.5 percent of global greenhouse gas emissions in the form of methane, carbon dioxide, nitrogen oxides, and sulfur oxides. 

“The future bio-economy will be worth at least $4 trillion, and up to $30 trillion globally. We have a timely opportunity to propel this growth through the development of cost-efficient and sustainable feedstocks,” said Rosie Wardle, co-founder and partner, Synthesis Capital. 

“We’re thrilled to support Hyfé, a leader in the bio-manufacturing revolution, in their next phase of growth, applying their technology to power the development of more sustainable products across sectors through bio-production. This is something the world desperately needs to reduce our dependence on fossil fuels, revitalize the manufacturing sector, strengthen our supply chains, and improve our health and environment.”

* Lynda Kiernan-Stone is editor in chief 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 Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com

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