The Future of Protein Production: Insights from Gas Fermentation Startups

The potential for creating protein from thin air through gas fermentation is an intriguing concept. This innovative method offers several advantages: it doesn’t require agricultural land, has an almost limitless feedstock, and can be environmentally friendly, depending on how the gases are sourced. However, the journey from concept to reality is fraught with challenges.

Challenges Ahead for Gas Fermentation Startups

Startups venturing into the gas fermentation space encounter multiple hurdles. They must convince partners, investors, and potential customers of the market viability for these novel proteins. Additionally, the search for affordable and environmentally friendly sources of essential inputs remains ongoing. The landscape for investment has also shifted significantly; back in 2021, many were more willing to invest substantial amounts into capital expenditure for alternative protein facilities than they are today.

The Viability of Gas Fermentation Technology

Despite the recent closure of Austrian startup Arkeon, which specialized in gas fermentation, experts assert that the technology itself is commercially scalable. Dr. David Welch, co-founder of Synthesis Capital, stated, “We’re confident that Arkeon’s technology will be acquired and brought to scale,” emphasizing the technology’s enduring potential.

Aerbio’s Approach to Protein Production

At the forefront of this innovative field is Aerbio, a gas fermentation startup based in Copenhagen. Co-founder and CTO Dr. Rob Mansfield is well aware of the fundraising challenges but is optimistic about the technology’s scalability. “The biggest challenge is getting your location right, which will be mainly driven by the upstream pricing of energy and therefore hydrogen,” he explained.

Focus on Cost and Production Efficiency

Aerbio’s mission centers on achieving high protein content, fast productivity, and low cost of goods. The startup has built a pilot plant in the Netherlands and is working on a demo-scale facility designed to produce a ton of its protein ingredient, known as ‘Proton,’ per day by 2027. Mansfield believes Aerbio can compete on pricing with high-quality protein ingredients, though sourcing both green and affordable gases remains a challenge.

Carbon Dioxide Sourcing: Four Options

Aerbio has explored various options for sourcing carbon dioxide. Their process has been validated using CO2 from the Drax power station in the UK, known for burning biomass pellets. Although raw flue gas was trialed, Mansfield expressed a preference for biogenic sources. Options also include geogenic CO2 from volcanic areas, as well as direct air capture, which currently faces high costs.

The Transition to Hydrogen

Hydrogen is another critical input for Aerbio’s gas fermentation process. Dr. Mansfield views this as a transition play, noting the lack of large-scale green hydrogen production facilities. Instead, the startup is focusing on regions with existing blue hydrogen sources, where carbon emissions are captured during the hydrogen production process.

Optimizing Bioreactor Design

Efficient gas transfer in the bioreactor is essential for production. Mansfield indicates that different designs—horizontal versus vertical systems—offer varying efficiencies, but a simpler reactor design may reduce contamination risks and optimization costs.

The Business Case: Competing on Cost

The business case for gas fermentation remains challenging, particularly as many customers are reluctant to pay a premium for green products. “Cost drives market engagement as much as anything else,” mentioned Mansfield. He acknowledged that the path to securing funding for pilot and demo plants is complicated but necessary to lay the groundwork for scaling.

Understanding the Variability of Single Cell Proteins

Aerbio’s protein is benchmarked against traditional fishmeal, and early trials suggest a high level of digestibility and protein content. However, there is still a knowledge gap among investors regarding the distinct qualities of different single-cell proteins. As Mansfield emphasizes, not all single-cell proteins are created equal, making the nature of this innovation significant for investor understanding and acceptance.

Further Reading

Interested readers can explore more about the developments in gas fermentation:

• Breaking: Gas fermentation ‘protein from air’ startup Arkeon files for insolvency… ‘Every failure teaches us something new’
• Gas fermentation startup Solar Foods bags $10.6m grant to enter pre-engineering phase of commercial-scale plant
• Unibio CEO: ‘We have the most efficient reactor design for gas fermentation’