Vienna’s Arkeon Faces Insolvency: A Setback for Gas Fermentation Startups
Arkeon, a Vienna-based startup focused on gas fermentation technology, has officially filed for insolvency. This decision marks a major turning point for the company, which aimed to revolutionize sustainable protein production.
A Moment of Reflection
In a recent LinkedIn post, cofounder and CEO Dr. Gregor Tegl expressed his gratitude to those who believed in the company’s vision. “While this is a difficult moment, I am incredibly grateful for everyone who believed in our vision for sustainable protein production via gas fermentation,” he stated.
Dr. Tegl added, “Although Arkeon’s journey has come to an end, my belief in the potential of sustainable biotechnologies remains as strong as ever. Every failure teaches us something new, and the lessons we’ve learned about scaling our technology, engaging with stakeholders, and navigating regulatory landscapes will stay with me as I move forward.”
The Promise of Gas Fermentation
Founded in 2021 alongside cofounders Dr. Simon Rittmann and Dr. Günther Bochmann, Arkeon aimed to decouple food production from traditional agricultural land. The startup’s innovative approach involved using gases instead of purified sugars to feed microbes, thus opening new avenues for food production.
To date, Arkeon has raised over $13 million from notable investors, including ICL, aws Gründungsfonds, Square One Foods, Synthesis Capital, and ReGen Ventures. The startup operated a pilot plant within Vienna’s Seestadt Innovation Hub, utilizing carbon dioxide and hydrogen to convert archaea into essential proteinogenic amino acids.
Challenges Ahead for Gas Fermentation
While gas fermentation is well-known for applications in fuel and chemical production—pioneered by companies like LanzaTech and Phase Biolabs—it has also gained traction in food and feed sectors. Companies such as Calysta and Circe are exploring how this technology can advance sustainable protein production.
Utilizing gases as microbial feed can significantly reduce input costs and streamline sterilization processes. However, the complexity of specialized bioreactors and capital expenses for ensuring safety and effective gas-liquid mixing remain hurdles. Moreover, scaling the technology poses economic challenges, particularly with sourcing affordable “green” hydrogen.
Industry Perspectives
Dr. David Welch, cofounder and CSO at Synthesis Capital, shared his thoughts on Arkeon’s setback with AgFunderNews: “We still believe in the potential of gas fermentation. Arkeon’s techno-economics, along with those of other gas fermentation companies, demonstrate that it is a viable production method for the food industry when at scale. However, building a successful business requires more than promising technology; some companies not making it is an inevitability in an emerging industry.”
He remains hopeful that Arkeon’s technology will eventually be acquired and brought to scale, suggesting that the lessons learned during its operations will benefit future endeavors in this space.
Further Reading
- Unibio CEO: ‘We have the most efficient reactor design for gas fermentation’
- Gas fermentation startup Solar Foods bags $10.6m grant to enter pre-engineering phase of commercial-scale plant
- Can gas fermentation deliver on its green promise for food and feed? In conversation with Calysta
- Gas fermentation co LanzaTech enters food arena: ‘We’ve developed a path to mass producing protein from CO2’
- Aerobic gas fermentation: the final frontier in novel fats?
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