Microalgae protein innovator Brevel has successfully completed the construction of its first-of-a-kind (FOAK) proprietary microalgae protein facility, securing two commercial agreements with leading food and beverage companies.
A FOAK facility represents a pioneering production line that showcases innovative technology at a commercial scale for the first time. This facility reassures investors, customers, and partners that the technology is viable for real-world applications, thereby minimizing technological risk. Once validation is achieved, the focus naturally transitions to addressing operational and market challenges, significantly mitigating overall risk.
In its latest report titled “Funding The Build,” The Good Food Institute (GFI) highlights the financial landscape for scaling the alternative protein sector. This guide specifically addresses a crucial bottleneck: financing for alternative protein manufacturing. Furthermore, it proposes strategic solutions to overcome these challenges.
The GFI report identifies several strategies to support this mission. For instance, companies specializing in protein-centric products can engage in co-manufacturing with established protein or dairy firms. Additionally, other alternative protein companies that prefer to develop their own facilities may be eligible for funding from select U.S. government programs and sovereign wealth funds. Another effective strategy involves forming partnerships with large agricultural or food corporations.
“Our report makes clear that companies have options, but these options are not enough. Collaboration, sustained effort, ingenuity, and patience are needed to unlock additional financing pathways. Together, governments, foundations, strategic companies, and investors can catalyse the funding the industry needs to realise alternative proteins’ transformative potential,” explains Sharyn Murray, GFI’s senior manager of investor engagement and financing.
Brevel has achieved several significant milestones in constructing its FOAK facility:
- Transitioning from pilot plant operations to a fully equipped advanced facility poised for commercial launch in early 2025.
- Establishing partnerships with two types of entities: off-takers—customers (typically food manufacturers) eager to integrate Brevel’s proteins into their products—and manufacturing partners interested in joint ventures to build and operate production facilities.
The start-up is actively collaborating with additional commercial partners to secure a robust pool of contracts. This approach not only builds confidence among partners but also strengthens investor relations, ensuring that the outcomes of the subsequent production lines will be fully commercialised.
Moreover, Brevel is working with partners to establish much larger production lines, with the FOAK facility serving as a testament to their capabilities, enticing partners to undertake financing and operations for these upcoming facilities.
“Food-Tech companies innovate the protein space,” states Yonatan Golan, Brevel’s CEO and co-founder. Alongside his brothers, Ido and Matan, he notes, “Plant-based burgers made a substantial impact in the market several years ago, bringing plant-based options into the mainstream. Now is the time for the next phase of plant-based 2.0, which will be better for you, more nutritious, and affordable for consumers. Brevel’s proprietary technology and expertise allow us to create a chlorella-based protein that offers a complete amino acid profile, resulting in a highly functional product at cost parity. Additionally, it possesses a neutral flavor and color, is highly sustainable, and leaves minimal environmental impact.”
Brevel cultivates its microalgae in indoor bioreactors through the fermentation of sugars. A unique aspect of its technology is the simultaneous application of light and fermentation, enabling the generation of nutrient-rich microalgae in abundant yields without any gene modification.
Yonatan Golan will host a panel at the Asia-Pacific Agri-Food Innovation Summit on November 19, 2024, in Singapore. The panel is titled: “Foodtech’s Next Phase: Building ‘First of a Kind’ (FOAK) Facilities and Securing Offtake Agreements.”
