Northern Europe’s largest insect meal project raises additional funding
Enorm Biofactory boosted the funding that was raised in January to scale up its insect plant and develop new eco-friendly power facilities.
September 23, 2022
Danish insect producer, Enorm Biofactory, has received the second part of the DKK 370 million funding program (USD 48,5 million) that the company raised in January, and also brought DLG into the circle of owners. The fund, which was raised through an agreement on additional equity, convertible bonds, and a loan program, has now been increased since the owners have contributed with more funds, and the Danish Green Investment Fund and Nykredit Bank have expanded the loan amount.
The initial project, under construction in Hedensted, Denmark and expected to be in full production by the end of 2023, was powered by natural gas. Since the energy market changed in 2022, the plan has changed and the new fund will be utilized to switch the production to an eco-friendly energy model.
“A lot has happened in the world since the project was announced, and energy prices and construction costs have skyrocketed. Therefore, I’m pleased that we have an investment group that is 100% behind us and that even allows us to invest in more sustainable energy sources than what was originally planned,” said Carsten Lind Pedersen, Enorm Biofactory’s CEO. “The first phase of construction is close to completion, which means that we can soon increase production at our pilot plant, which is already in operation.”
The new sustainable energy solution, that will secure the reduction of Enorm Biofactory's production costs, will have a new boiler station that can use carbon-neutral biomass from wood chips, garden waste, fast-growing willow trees, and other sources of locally produced wood-based biomass. At the same time, the company has invested in a heat pump system to recirculate heat from the stables used for insect production. In combination with other optimized energy solutions, the heat circulation system is expected to reduce energy consumption by 38% in future production.
The new facility will have a production capacity of 100 tonnes of larvae per day, corresponding to 11,000 tonnes of insect protein per year to be used as a protein source in animal feed.