Biotech company based in Poland secures €9.5 million in European financing

In a significant move towards sustainable pet food production, Proteine Resources, a Polish-based company, has secured €9.5 million from the European Innovation Council (EIC) Accelerator. This funding will be used to scale up production of pet food made from insect protein, marking a milestone in the global shift towards eco-friendly pet care.

The new factory, located in Masłomiąca, will employ a carbon-negative process that converts by-products from the mushroom industry (stems and mycelium) into protein-rich amino acids like taurine and L-arginine, beneficial for cat and dog nutrition.

Key aspects of the funding include scaling the pilot facility by 10 times, developing a modular, low-energy factory design, implementing AI-driven automation, turning agricultural waste into valuable protein ingredients, and producing a 1:1 beef analogue for premium meat-free pet food.

The AI-driven automation aims to optimize efficiency, sustainability, and reduce waste, resulting in a closed-loop system that uses 100% of agricultural inputs without feed waste. This innovation could significantly reduce waste disposal costs for mushroom growers, who can spend up to €80,000 annually on waste management.

The new factory will also produce a 1:1 beef analogue for premium meat-free pet food, offering a climate-positive and cost-effective alternative to conventional animal protein.

Borys Musielak of Smok Ventures stated that Proteine Resources is transforming an environmental challenge in agriculture into a scalable business with real biotech credentials. This funding and project are a validation of Proteine Resources’ innovative biotechnology platform and their commitment to circular economy principles.

The European pet food market is thriving, with annual sales standing at €29.2 billion in 2023 and a production volume of around 9.1 million tonnes. Almost half of all European households own at least one pet, making the market a significant consumer of pet food products.

Proteine Resources is not alone in its mission to revolutionise the pet food industry. Protix, a Netherlands-based alternative protein producer, has formed a joint venture with US meatpacking giant Tyson Foods to build an insect plant in the US.

Investors, including the European Circular Bioeconomy Fund, BNP Paribas, the Prince Albert II Foundation, Aqua-Spark, Rabo Investments, and Invest-NL, have shown their support for alternative protein producers like Protix. The European Investment Bank (EIB) has partnered with Rabobank in a €1bn SME financing deal.

Proteine Resources is backed by deeptech investors including SMOK Ventures, Bitspiration Booster, and Labena Ventures. The company's protein-rich products are said to enhance animal health by supporting the digestive system of pets and boosting immunity.

This funding and project mark a significant step forward in the sustainable pet food industry, demonstrating the potential for circular economy principles to transform traditional industries and create profitable, eco-friendly solutions.

[1] Proteine Resources. (n.d.). Retrieved from https://proteineresources.com/ [2] European Innovation Council. (2023). Retrieved from https://eic.europa.eu/ [3] Smok Ventures. (2023). Retrieved from https://www.smokventures.com/ [4] Protix. (2023). Retrieved from https://www.protix.com/ [5] Tyson Foods. (2023). Retrieved from https://www.tysonfoods.com/

The funding obtained by Proteine Resources from the European Innovation Council Accelerator will be utilized to scale up production of pet food made from insect protein, marking a significant step forward in financial inclusion for sustainable businesses.
The new factory in Masłomiąca, developed with development finance, will employ a carbon-negative process that converts agricultural waste into protein-rich amino acids, showcasing the potential for blended finance in environmental-science industries.
The implementation of AI-driven automation in the factory aims for optimized efficiency, sustainability, and waste reduction, demonstrating the role AI can play in both the industry and climate-change mitigation.
By producing a 1:1 beef analogue for premium meat-free pet food, Proteine Resources is offering an eco-friendly, cost-effective alternative to conventional animal protein in the context of the growing global concern over business and environmental impacts.
The support for alternative protein producers like Protix by a group of investors indicates a promising trend in sustainability-focused investing, particularly in the current landscape of Europe's burgeoning pet food market.
The commitment of Proteine Resources to circular economy principles, as demonstrated by their biotechnology platform, could serve as a model for the integration of technology and artificial-intelligence in creating profitable, eco-friendly solutions across various industries.