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Brevel implements first-of-a-kind model for its microalgae protein
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Thursday, 14 November, 2024, 13 : 00 PM [IST]
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Kiryat Gat, Israel
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Microalgae protein innovator Brevel Ltd., has successfully implemented the first-of-a-kind strategy method by building its first plant for proprietary industrial-scale fermenters for microalgae protein. The company has completed construction of its facility and already secured two commercial agreements with leading food & beverage companies.
The facility is a production line or factory that showcases new technology at commercial scale for the first time. This provides confidence to investors, customers, and partners that the technology is viable in real-world applications, effectively minimizing technology risk. Once such validation is achieved, the focus shifts to operational and market challenges, significantly reducing overall risk.
In its latest “Funding the Build” report, The Good Food Institute (GFI), shed light on the financing landscape for growing the alternative protein sector. The guide zeros in on a key bottleneck—financing for scaling alt protein manufacturing—and suggests strategic solutions to overcome these challenges.
GFI reported that the institute identified certain strategies for this mission. For example, protein-centred product makers can engage in co-manufacturing with protein or dairy companies. Other alt-protein companies that prefer to build their own facilities could be eligible to source funding from select US government programs and sovereign wealth funds. Another strategy would be forming strategic partnerships with large agricultural or food corporations.
Sharyn Murray, GFI's senior manager, investor engagement and financing, said, "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 realize alternative proteins’ transformative potential."
The company already achieved a few key milestones in building its facility:
- Moving from pilot plant to a new, advanced, fully equipped facility ready-to-go commercial in early 2025.
- The company has partnering agreements with two types of entities: Off-takers—that is, customers (typically food manufacturers) who want to use its proteins in their products, and manufacturing partners interested in joint ventures to build and operate a manufacturing facility to produce protein as an ingredient.
The start-up is currently working with additional commercial partners to secure and create a pool of contracts, building confidence with partners as well as investors and ensure that the results of the next production lines will be fully commercialized. Such agreements can be used to raise debt and provide confidence to manufacturing partners.
The company also is working with partners toward building much larger production lines, and its facility will serve as a confidence point for these partners who will undertake the financing and operating of these next facilities. According to an article in the start-up news and analysis newsletter Sifted, once a company establishes offtakes it’s a sign that the startup is providing something the industry needs. This, in turn, ultimately helps convince investors to join in.
Yonatan Golan, Brevel’s CEO and co-founder, along with his two brothers Ido and Matan, said, “Food-Tech companies innovate the protein space. Plant-based burgers made a great impact in the market several years ago, bringing plant-based 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 the consumers. Brevel’s proprietary technology and know-how enable us to create a chlorella-based protein that delivers a full amino-acid profile, highly functional product and at cost parity. It also has a neutral flavour and colour, is highly sustainable, and leaves a minimal environmental footprint.”
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