To Make the Bioeconomy Real, Develop for Scalability and Creditworthiness (Blue Horizon)

Summary

• A 2020 BCG report estimates that by 2060 the organic materials required globally will have doubled to around 167 billion tonnes.p.5
• 62% of global greenhouse gas emissions are caused during material extraction and processing.p.5
• Only 12 facilities with 200,000L fermentation capacity or more are listed by capacitor.bio.p.15
• At least 125 manufacturers of fermentation-derived innovative food products were recorded in GFI's database in 2022.p.15
• Titres vary from up to 80 g/L for E. coli and 65 g/L for filamentous fungi to 20 g/L for Pichia.p.11
• High-value ingredients can cost in the range of $20 - $1000/Kg.p.8

Key insights

1. Third, scaled-up biomanufacturing processes need scaled-up infrastructure, and financing such innovative infrastructure poses a sizeable challenge.p.3
2. The go-to-market strategy should define the maximum acceptable COGS for the target product at its market viable price.p.9
3. Doubling time is around 20 minutes for E. coli versus 1 to 3 hours for Pichia pastoris.p.11
4. Fermentation can last up to 2 times longer in Pichia and 3-4 times longer in filamentous fungi compared to E. coli.p.11
5. Fermentation facilities can easily cost tens to hundreds of millions of dollars, necessitating smart financing approaches.p.15
6. The Cargill and Enough mycoprotein facility was supported with EUR 17 million from the Bio Based Europe Joint Undertaking.p.18
7. AB InBev and EVERY aim to produce proteins in fermenters of 500,000 to 1 million litres.p.18
8. Building creditworthiness using project finance can open doors to lower-cost capital such as venture debt, private equity and institutional capital.p.19