The easiest way for people to ingest carbon dioxide is by eating vegetables. David Ts wants his startup's protein to be next.
Tze’s company, NovoNutrients, has been working on using microbes to turn carbon dioxide into proteins that can be used as human food and animal feed. Now, Tze says, the startup is working to build a pilot plant in the San Francisco Bay Area to produce proteins for companies looking for alternative sources.
To support construction, NovoNutrients has raised an $18 million Series A round from investors including Australian energy company Woodside Energy, TechCrunch has learned exclusively. The final tally includes the $3 million Woodside pledged last year.
NovoNutrients spent the last year preparing the pilot plant, which included refining the bioreactor design, Tze said. Once complete, the pilot plant will use much of the same equipment as the future commercial-scale plant, making it a valuable testing ground for the design and microbial strains.
NovoNutrients uses fermentation, like other companies, to turn carbon dioxide into more complex molecules. But unlike many of its competitors, it doesn’t use large tanks like those found in breweries. Instead, NovoNutrients uses thinner cylinders with loops, which Tze says helps reduce the amount of energy needed to mix the gases.
To produce these proteins, the company adapts strains of microbes to digest waste streams containing different gas mixtures. For some products, the company can use synthetic biology techniques to improve the stability and efficiency of the microbes. But for natural products, Tze says, NovoNutrients uses evolution to enhance them. “Our most relevant strain development is the fact that we can actually adapt strains through natural, non-GMO means to specific gas mixtures that are available at specific partner sites,” he says.
NovoNutrients plans to make most of its money by selling the microbes along with a license to build, operate and maintain the facility, rather than building and operating a commercial-scale plant. “We will also do marketing and business development for the product,” Tze said.
It will take some effort to get there, but Tze is confident the pilot plant will produce the data needed to convince investors that a commercial-scale fermenter is worth investing in. The goal, he said, is to take a “low-capital” route to market.
Perhaps unexpectedly, Mr. Tsu said he has spent more time talking to pet food companies in the past year.
“In part, this was a response to the widespread decline in trust and interest in alternative proteins for people,” he said. “In contrast, the pet food sector has been quicker to recognize the benefits of alternative proteins.” It doesn’t hurt that people spend a lot of money on their pets either. According to the U.S. Bureau of Labor Statistics, total spending increased 78 percent from 2013 to 2021.
“There is a market that is willing to pay a significant premium for ingredients that include, but are not limited to, hypoallergenic ingredients,” Tze said. Because NovoNutrients’ proteins are new to many pets’ diets, Tze said, they should not be a problem for pets with food allergies.
