Nutrition Technologies opens new industrial-scale insect factory in Malaysia, raises additional funds

Singapore-based Nutrition Technologies opened its first industrial-scale insect protein factory in Iskandar Puteri, Johor, Malaysia. Since 2014, the company has been using black soldier flies (Hermetia illucens) to turn low-grade food waste and organic byproducts into proteins and oils as a sustainable alternative to fishmeal.

The new factory was commissioned in December 2020 and is now scaling-up its production. “When fully operational, our new plant will produce 16,000 tons of insect products per year, (12,000t of insect frass, 3000t of insect meal and 1000t of insect oils). This will divert 80,000 tons of waste per year from landfills and save tens of thousands of pelagic fish in the oceans, by providing a substitute for fishmeal,” said co-CEO and co-founder, Nick Piggott.

Nutrition Technologies’ new plant is a result of five years of R&D and technology development. Their vertical insect production system is optimized for the tropical conditions in Southeast Asia and uses bespoke automated equipment and Industry 4.0 principles to ensure strict biosafety and high-quality standards. As a zero-waste facility, Nutrition Technologies is aiming for the facility to be carbon negative at full capacity. “Nutrition Technologies is committed to delivering sustainable products that meet the strict requirements of the animal feed market, as well as being low cost and environmentally friendly,” said co-CEO and co-founder, Tom Berry.

$5m additional funds raised

Nutrition Technologies also closed a recent funding round of $5m, led by Hera Capital, and supported by existing investors, Openspace Ventures and SEEDS Capital (the investment arm of Enterprise Singapore). This will be used to fund new R&D projects as well as prepare the company for entry into new markets in Southeast Asia.

“We are very excited to partner up with Nutrition Technologies to support their growth. Commercial insect production is one of the most important innovations of the last decade, with the potential to disrupt the animal feed sector and solve multiple issues the world is currently facing,” said Sebastien Guillaud, managing partner, Hera Capital.

“Nutrition Technologies has a great team led by highly committed and capable founders. Despite the COVID-19 challenges, they were still able to build their new factory and continue to innovate,” said Hian Goh, founding partner, Openspace Ventures.

Nutrition Technologies have raised a total of US$14m to date.

Next steps, series B and new markets

The company plans to raise its Series B funds in Q3 later this year. This round will be used to increase production capacity 10-fold, in order to meet its current pipeline demand. They are looking to expand production in Malaysia while also establishing new industrial-scale plants in Thailand, Vietnam and Indonesia. As the company continues to focus on research and development, an R&D center will be established in Singapore, as an anchor for the company to lead innovation and connect with industry partners and investors.

This expansion will boost Nutrition Technologies’ positive environmental impact, through upcycling more than 500,000 tons of waste a year, significantly contributing to improve ocean health and providing more than 600 jobs in low-income areas across the region.

“We aim to be a global leader in the insect space. Over the next ten years, we plan to build a large network of insect farms across the region, supplying a new high-quality insect meal to support the growth of aquaculture and livestock production in Asia,” said Tom Berry, co-CEO and co-founder.