NovoNutrients modifies microbes to convert CO2 into protein for humans and pets

Revolutionizing Protein Production: NovoNutrients' Unique Approach

The simplest way to consume carbon dioxide indirectly is by eating vegetables, but David Tze envisions his startup’s protein becoming a close second. Tze's company, NovoNutrients, is innovating by using microbes to convert carbon dioxide into protein for human food and animal feed. Currently, NovoNutrients is on the path to building a pilot plant in the San Francisco Bay Area aimed at catering to companies seeking alternative protein sources. To finance this ambitious project, NovoNutrients has successfully secured $18 million in a Series A funding round, with contributions mainly from Woodside Energy, an Australian energy company.

The past year for NovoNutrients has been one of meticulous preparation for their pilot plant, particularly in refining the bioreactor design. This pilot operation is pivotal as it will employ equipment that mirrors what would be used in a full-scale commercial plant, thereby serving as a crucial testing ground for both equipment and microbial strains.

NovoNutrients' fermentation process, which converts carbon dioxide into complex molecules, sets itself apart from its competitors. Unlike traditional methods that use large tanks similar to those in breweries, they utilize thinner, looped cylinders, which Tze claims reduce energy consumption during gas mixing. The company customizes the microbial strains to breakdown waste streams with varying gas compositions. For some products, synthetic biology techniques are employed to enhance the microbes’ efficiency and stability. Meanwhile, natural products benefit from an evolutionary approach, which is optimally supplemented.

Naturally Tailored Microbial Strains

"Our key innovation lies in naturally tailoring microbial strains to specific gas mixes at partner sites," Tze explained. The company's strategy to monetize mainly focuses not on creating and running large-scale plants but on selling the microbes and licensing the rights to build, run, and maintain the facilities. They also plan to manage marketing and business development for these products.

Focus on a "Capital-Light" Journey

Tze emphasizes that achieving this vision requires significant effort, but he is optimistic that the data from the pilot plant will persuade investors to back a commercial-scale fermenter. The aim is to adopt a "capital-light" approach to marketability.

Unexpected Shift to Pet Food

Interestingly, Tze noted a shift in focus towards pet food companies over the past year. “This shift partially arises from declining confidence in alternative proteins for human consumption,” he observed. Meanwhile, the pet food industry has been quicker to acknowledge the benefits of alternative proteins. Furthermore, spending on pets has substantially increased, creating a lucrative market for innovative ingredients.

Tze pointed out that NovoNutrients' protein being novel to many pets' diets means it is less likely to trigger food allergies, adding another layer of appeal to pet food manufacturers. "Consumers are willing to invest in high-quality, hypoallergenic ingredients for their pets," Tze said.