Calysta secures $40m funding for feed alternative
US feed developer Calysta Inc has announced it has raised $40 million in a financing round led by Tokyo-based conglomerate Mitsui & Co.
Calysta intends to use a majority of the proceeds of the Series D investment to advance commercial scale manufacturing of its FeedKind protein, a family of sustainable, traceable nutritional ingredients for aquaculture, livestock and pets.
Also participating in the funding round were Singapore-based investment company Temasek and current investors Cargill, the Municipal Employee Retirement System (MERS) of Michigan, Walden Riverwood Ventures, Aqua-Spark and Pangaea Ventures.
“We are very pleased to welcome Mitsui and Temasek to Calysta’s strategic family of investors, supporting committed investing in products that will make a global impact,” said Tom Baruch, executive chairman of Calysta’s board. “Calysta’s FeedKind protein, expected to enter commercial production in 2019, can help address the world’s growing demand for new sustainable sources of protein and greater food security.
“We look forward to working with Mitsui as a strategic partner in marketing and distribution of FeedKind in important new markets [Asia] and in the expansion of FeedKind production,” Baruch added. “We also welcome the opportunity to establish a significant collaboration in Singapore with Temasek, a leader in supporting innovative technology development.”
Calysta uses proprietary gas-fed fermentation to produce feed-quality protein with high nutritional value. Its FeedKind protein is an alternative to ingredients such as fishmeal and soya intended for use in fish and livestock feeds and pet food.
In November 2016, Calysta and Cargill, along with several third-party investors, announced plans to invest in the creation of the world’s largest gas fermentation facility in Memphis, Tennessee, to produce FeedKind protein. The facility is expected to come online in 2019, producing up to 20,000 metric tons per year of FeedKind protein initially and expanding to up to 200,000 metric tons per year when operating at full capacity.
Calysta also operates a Market Introduction Facility in the United Kingdom supplying sample quantities of FeedKind protein for customers.
Joining the Calysta board of directors from Mitsui will be Hitoshi Kudo, general manager of the animal nutrition department in the Nutriscience Division of the Nutrition & Agriculture Business Unit. Joining from Temasek will be Suan Swee Tan, managing director of investments agribusiness and biotech.