Calysta Shifts Focus as R&D Labs in the US and UK Close

Calysta, a California-based company pioneering the production of “protein from air,” has announced the closure of its research and development labs and pilot plants in both the United States and the United Kingdom. This shift comes as the firm, led by co-founder and CEO Alan Shaw, PhD, has successfully established its commercial processes in China.

Transitioning from R&D to Manufacturing

In an interview with AgFunderNews, Shaw discussed the transition as equipment from the company’s pilot plant and R&D facility in Redcar, Teesside, is currently being auctioned off by BPI Asset Advisory. “These facilities have served their purpose,” Shaw stated, noting that the firm has successfully scaled its production capabilities at its industrial facility in Chongqing, China.

Innovative Approach to Protein Production

Calysta stands among a select group of high-profile startups focusing on sustainable food and feed production via gas fermentation. This innovative process utilizes gases rather than purified sugars to nourish microbes that create protein. With a functional industrial-scale facility producing 20,000 tons per year in China, Calysta operates through a joint venture with Adisseo, a company specializing in animal nutrition, under the brand FeedKind.

Streamlining Operations for Future Growth

“We have completely exited the UK site and are closing our US lab in San Mateo, California, as we don’t need them anymore,” Shaw explained. He emphasized the company’s shift in focus towards manufacturing and sales. The teams previously based at these facilities supported plant commissioning, which is now complete. “We’re not a startup anymore; we’ve evolved into a manufacturing company,” he added.

Exploring Global Opportunities

Calysta is directing resources towards leveraging its Chinese production plant while also investigating potential sites for additional plants in the Middle East, particularly in Saudi Arabia and the UAE. North America remains a possibility as well. Shaw noted, “I expect FeedKind is going to keep us busy for the next 10 years.”

The Pet Food Market: A Major Opportunity

Initially targeting the Chinese aquaculture market, Shaw has recognized significant growth potential in the pet food sector. He forecasts that around 70% of the Chongqing facility’s annual capacity will now be allocated to pet food production. “The product has resonated extremely well in that market. It’s non-animal, non-vegetable, vegan, and rich in essential nutrients,” he said.

Although fishmeal prices remained competitive, making aquaculture an attractive market, the unexpected positive reception in pet food has shifted Calysta’s focus. Shaw commented, “You won’t find a better price than $2,000 a ton for our product in aquaculture, but in pet food, it could be almost double that.” He added, “We anticipate gaining approval to sell to dogs in the US next year.”

Future Directions and Collaborations

Calysta’s priorities are now geared towards maximizing the output of its Chinese facility, establishing it as a benchmark for future plants globally. Shaw emphasized, “No one else is doing anything like this on this scale.” He also highlighted the partnership with Adisseo, which is majority-owned by the state-run Sinochem enterprise. This collaboration is timely, given China’s pressing food security concerns.

A Rare Opportunity: The Teesside Auction

The equipment from the Teesside facility is now available for auction, presenting what BPI Asset Advisory deems a “rare opportunity” for businesses and institutions involved in fermentation and cellular agriculture. The auction is set to close on Thursday, November 20, with interested parties encouraged to reach out to Luke Hartshorn at lhartshorn@bpiadvisory.com.

“The sale is expected to draw significant interest from research institutions and biotechnology organizations looking for high-quality scientific instrumentation,” they noted.

Conclusion

As Calysta advances from its R&D phase to broader manufacturing operations, the company is poised to make a significant mark in the sustainable protein space, with ongoing exploration for new facilities and markets that could redefine food production.