Nutrition Technologies to propel insect protein innovation after US$20M equity round

20 Sep 2022 --- Malaysia-based Nutrition Technologies, a manufacturer of animal feed ingredients and biofertilizers and “the first industrial insect company,” has ended its equity venture round with US$20 million investment. The funding will enable the company to expand into new markets and develop new products.

“Our main products are an insect meal, which comes in a dry powder form sold in 25 kg bags, insect oil, which is a liquid oil sold in 1000 L containers, and frass fertilizer, which is also in dry powder form and sold in 500 kg bags,” Tom Berry, co-CEO at Nutrition Technologies tells NutritionInsight.

“Insect solutions show great potential to help contribute to reaching global greenhouse gas (GHG) emissions targets, improve food security and reduce waste streams in a low-energy environment,” the company underscores.

The funding round was led by PTT Ventures, who contributed with the most significant investment.

Agricultural revolution?Innovating in insect nutrition may be the key to solving multiple issues in the world, PTT Ventures stresses.
Nutrition Technologies emphasizes that the insect sector has received increased attention in recent years. In 2021, the global insect market was valued at an estimated US$343 million, and expected to reach US$1.3 billion by 2027.

“We believe insect protein is one of the most important recent solutions to protein production, contributing to solving various environmental issues and addressing several sustainable development goals,” says Masahito Uno, GM Life Science Division at Sumitomo Corporation.

“The only ingredients we add to the insect meal and insect oil products are antioxidants – but only at the customer’s request. Otherwise, these are 100% black soldier fly larvae products. The frass is 100% black soldier fly frass,” Berry adds.

The company explains that there is a growing protein deficiency, as traditional protein sources stagnate from overfishing and deforestation, while food waste in landfills contributes extensively to GHG emissions.

“Insects represent a virtually unlimited and untapped pool of biological assets, with huge opportunities for value creation. Tackling food security is only the tip of the iceberg. With our strengthened balance sheet and great partners, we are strategically positioned to lead the next agricultural revolution,” says Richard Hayler, CFO at Nutrition Technologies.

Further expansionThe products contain 100% black soldier fly larvae and exclude any ingredients except antioxidants on customer request. (Credit: Nutrition Technologies)
The company says it is looking at further expansion and planning a new joint-venture “elsewhere in Southeast Asia.”

“Our technology has been designed to suit tropical climates, so at some point in the future, we envisage expansion to other tropical regions outside of Asia.” 

“PTT Ventures was the largest investor in this round,” Berry notes. Other investors included Sumitomo Corporation, ING Sustainable Investments and Mandala Capital. It also included continued participation from the existing investors Openspace Ventures, Seeds Capital and Hera Capital.

“Commercial insect protein production is one of the most important innovations of the past few years. With the potential to disrupt the animal feed and fertilizer sectors and solve multiple issues the world is currently facing,” says Dr. Buranin Rattanasombat, senior executive VP for Innovation and New Ventures at PTT Public Company Limited. 

Recently, insect protein has been highlighted for its potential nutritional benefits with high protein and amino acid levels. Insects are already being consumed in large parts of the world, however, not in the West. Nutrition Technologies is looking to expand in the UK and Europe “very soon.” 

“Furthermore, we expect this partnership will provide customers with innovative solutions to revolutionize the agriculture sector and improve people’s quality of life,” Rattanasombat concludes. 

By Beatrice Wihlander