Nesle, France-based biotechnology start-up InnovaFeed has formed a partnership with The Archer-Daniels-Midland Company (ADM), a human and animal nutrition-focused conglomerate based in Chicago, Illinois, U.S.A., to build and operate the world’s largest insect protein production facility in Decatur, Illinois.
The announcement comes on top of the company’s revelation on Twitter on 24 November it had raised an additional EUR 140 million (USD 166.7 million) in its latest investment round, including major investments from Paris, France-based sustainability-focused investment firm Creadev and Singapore-headquartered Temasek Lifesciences Laboratory (TLL), a nonprofit specializing in fish genomics and breeding.
“We are very pleased to launch this ambitious project, working alongside ADM and Illinois state partners as InnovaFeed expands to provide sustainable solutions to meet the fast-growing demand for insect feed in the US and worldwide,” InnovaFeed Co-Founder and CEO Clement Ray said. “Around the world, InnovaFeed is contributing to the emergence of sustainable food systems by developing a pioneering and sustainable industry. Our new operations in Illinois, a global leader and destination for agriculture, will allow us to take the next steps to innovate and grow our business.”
Insect feed has become an increasingly popular protein ingredient for aquaculture due toits viability as a replacement for fishmeal and its lower environmental impact. InnovaFeed, which makes feed from black soldier fly larvae, already operates two insect production facilities in France, including what is today the world’s largest in Nesle, as well as a pilot plant in Gouzeaucourt. It previously announced plans to build five additional plants based on the model of the Nesle facility.
“At a time when the demand for animal feed protein is steadily increasing, insect farming stands out as a true solution for the future,” ADM Senior Vice President Chris Cuddy said. “We’re excited to work with InnovaFeed on this ambitious project, which further expands our participation in the growing market for animal food and feed that comes from responsible, sustainable sources. It’s a great demonstration of how ADM is expanding its value chain by offering opportunities for collaboration to leading, innovative startups. It’s yet another example of how we’re constantly identifying new ways to create value from corn, oilseeds and more. And of course, we’re extremely proud that we can help bring this new, job-creating project to Decatur, the home of our North American headquarters.”
Construction is expected to begin in 2021, pending the receipt of all required permits. The facility will be built in two phases, with a final annual production capacity of 60,000 metric tons (MT) of animal feed protein, as well as 20,000 MT of oils to be used in poultry and swine feed, and 400,000 MT of fertilizer. The plant will be co-located with ADM’s Decatur corn complex, with ADM providing corn byproducts to InnovaFeed, as well as waste heat and steam. InnovaFeed has claimed it saves 25,000 tons of carbon dioxide emissions per year with each 10,000-ton-production unit it operates, but with its collaboration with ADM, it expects to reduce CO2 emissions even further – by 80 percent versus standalone production, it said.
The facility will receive tax breaks from its construction inside the Decatur-Macon County Enterprise Zone and incentives from the City of Decatur and Economic Development Corporation of Decatur-Macon County. Additionally, it will receive assistance from the Illinois Department of Commerce and Economic Opportunity and the Illinois workNet Center on employee recruitment and job training.
The ADM partnership follows InnovaFeed’s announcement in June 2019 that it would partner with Cargill to develop insect-based fishmeal to be used in salmon or shrimp feed. The company has already a fish-free feed for trout in France and is planning on introducing a shrimp feed soon, according to InnovaFeed Business Development Head Maye Walraven,
“We’ve seen a strong acceptance of our products by consumers looking for natural and sustainable products,” Walraven said.
Adriano Marcon, president of Cargill’s aqua nutrition business, said at the time of the partnership that the move came in response to changing demands from the company’s customers.
“This partnership will not only enable our salmon and shrimp customers to differentiate their product lines to meet consumer needs, but we’ll also be responsibly managing resources, enabling both companies to support the growth of sustainable aquaculture and make a positive impact at a global scale,” he said.
Photo courtesy of InnovaFeed
