NovoNutrients Revamps Microorganisms to Convert CO2 Into Protein for Human and Pet Consumption

Consuming vegetables is the simplest method for individuals to ingest carbon dioxide, but David Tze aims for his startup’s protein to be a very close alternative.

David Tze’s venture, NovoNutrients, is pioneering a process that utilizes microbes for converting carbon dioxide into a protein suitable for human consumption and animal feed. Tze reveals that they are advancing towards initializing a prototype facility in the San Francisco Bay Area to manufacture protein for enterprises in search of alternative ingredients.

In support of its construction endeavors, NovoNutrients secured a Series A funding of $18 million, led chiefly by Woodside Energy, a distinguished Australian energy corporation, and CM Venture Capital, as exclusively reported by TechCrunch. This fundraising effort includes a previously committed $3 million from Woodside last year.

Over the past year, NovoNutrients dedicated its efforts to the preparatory phase for its pilot facility, focusing on the enhancement of its bioreactor blueprint. Post-completion, the pilot setup will utilize virtually identical equipment destined for future full-scale production, serving as a crucial testbed for their design and microbial breeds.

Employing fermentation techniques similar to other firms that transform carbon dioxide into complex molecules, NovoNutrients opts for a unique approach. Rather than the traditional large tanks observed in breweries, the company employs slimmer, looped cylinders, which Tze explains, significantly reduce the energy required for gas mixing.

The firm customizes microbial strains to metabolize waste streams containing various gas compositions for protein production. While leveraging synthetic biology to enhance microbe efficiency and stability for certain products, Tze mentions that for natural products, the company enhancements come through natural, non-GMO methods, focusing on evolution and giving it a supportive push. “Specific mixed gases accessible at partner sites allow us to specially tailor the strains through these natural techniques,” Tze elaborates.

NovoNutrients envisions generating revenue mainly through the sale of microbes and licenses for the construction, operation, and maintenance of the facilities, rather than primarily from operating large-scale plants. “Moreover, we plan to spearhead marketing and business development initiatives for these products,” Tze adds.

Though reaching this milestone requires considerable effort, Tze is optimistic that the pilot plant will yield convincing data for investors, reinforcing the viability of a commercial-scale fermenter. He aims for a “capital-light” approach to achieve market presence.

Interestingly, Tze notes a pivot towards engaging with pet food manufacturers more frequently over the past year. This shift is partly due to diminished enthusiasm for alternative proteins among humans and the pet food industry’s quicker adoption of alternative protein advantages. The generous spending habits of pet owners, with a 78% increase in total outlay from 2013 to 2021 as reported by the U.S. Bureau of Labor Statistics, also play a role. Tze points out that the market has shown a readiness to invest in specialized ingredients, including hypoallergenic options, implying that NovoNutrients’ protein could seamlessly integrate into pet diets without triggering allergenic reactions.

Update: Recognition of CM Venture Capital as a participating investor.