Eating vegetables is the most direct way to incorporate carbon dioxide into the body. David Tze intends to position his new company's proteins in second place.
The company NovoNutrients, directed by Tze, has dedicated itself to the development of a method that uses microorganisms to transform carbon dioxide into proteins suitable for human and animal consumption. Tze has announced that the company is currently focused on building a pilot plant in the San Francisco Bay region, which will be responsible for the production of proteins for companies interested in alternative food sources.
NovoNutrients has obtained $18 million in a financing round Serie A of investors, to finance the construction. Among the investors is Woodside Energy, an Australian energy company. It is highlighted that of the total amount raised, 3 million dollars correspond to the financing promise made by Woodside the previous year.
According to Tze, NovoNutrients has spent the last year preparing for the start-up of its pilot plant, which involves improving the design of its bioreactor. The pilot plant, once completed, will use largely the same equipment as a future commercial-scale facility, thus becoming a relevant testing ground for the company's designs and microbial strains.
Novonutrients uses the fermentation process, like other companies that transform carbon dioxide into more complex molecules. Unlike most of its competitors, the company does not use a large tank similar to that used in a brewery. Instead, Novonutrients uses thinner, loop-shaped cylinders, which, according to Tze, helps reduce the energy consumption required for gas mixing.
The company adapts strains of microorganisms to produce proteins by digesting waste with different gas mixtures. To improve the stability and efficiency of microorganisms in some products, synthetic biology techniques are used. On the other hand, for natural products, Novonutrients uses evolution as its main strategy. According to Tze, the company's focus is on adapting strains through natural means, without genetic modification, so that they can digest specific mixed gases available in partner locations.
NovoNutrients intends to generate revenue primarily through the commercialization of microorganisms and licensing the construction, operation and maintenance of facilities, rather than investing in the construction and management of large-scale plants. According to Tze, the company will also be responsible for marketing strategies and business development of the products.
To achieve that goal, meticulous work will need to be done. Tze is confident that the pilot plant will generate the information required to persuade investors of the viability of investing in a commercial-scale fermenter. According to his statements, the goal is to undertake a marketing strategy with a low initial investment.
In a surprising change of direction, Tze mentioned that over the past year he has spent more time engaging in conversations with companies in the pet food sector.
According to the interviewee, the growing preference for alternative proteins in the human diet is due in part to the general decline in confidence and interest in such proteins. On the other hand, he points out that the pet food sector has been more receptive to the benefits of alternative proteins. Furthermore, it is noted that spending on pets has experienced a notable increase, reaching an increase of 78% between 2013 and 2021, according to data from the US Bureau of Labor Statistics.
According to Tze, in certain market segments there is a notable willingness to purchase ingredients, such as hypoallergenic ones. Tze noted that introducing NovoNutrients protein into pet diets should not pose any issues for pets with food allergies.
