Insect protein producer Entosystem has secured an investment of $58 million to accelerate its growth and support the development of a second commercial plant. The plant’s development reportedly represents a key step in meeting the increasing demand for sustainable proteins and organic fertilizers.
Idealist Capital, Sanimax and Fondaction have announced their $58 million strategic investment in Entosystem, one of the key players in the production of insect proteins and organic fertilizers for agriculture and animal nutrition. This decisive investment aims to accelerate Entosystem’s growth by increasing existing production capacity and constructing a second commercial plant.
Using its cutting-edge technology, Entosystem reportedly diverts tonnes of organic materials from landfills and transforms them into high-quality ingredients, reducing the environmental footprint of food production.
“This agreement is the result of a rich collaboration with strategic business partners and, above all, the dedication of an outstanding team without whom Entosystem would not have been able to position itself so quickly as a world leader in its sector. We have all the keys in hand to achieve our ambitions and grow,” says Cédric Provost, President and Co-Founder, Entosystem.
The Drummondville carbon-negative plant can process 90,000 tonnes of organic matter each year into 5,000 tonnes of high-quality protein meal, as well as 15,000 tonnes of fertilizer approved for organic farming. According to an independent study, this innovative project reduces GHG emissions by 85% compared to the current scenario and generates carbon credits. According to the hierarchy of solutions to prevent food loss and waste, Entosystem’s solution is preferred as it enables the reintroduction of organic matter into the food chain through an ecological process.
According to the announcement, the second plant under development represents a key step in the company’s growth strategy to meet increasing demand for sustainable proteins and organic fertilizers.
“We are delighted to be able to support such an innovative company as Entosystem. Their sustainable approach aligns perfectly with our strategic plan, our values and our mission of a greener environment,” explains Martial Hamel, Chief Executive Officer of Sanimax.
“With the Drummondville plant, Entosystem has demonstrated at scale its process for the economic reclamation of organic matter through the production of proteins for animal feed and organic fertilizers,” shares Steeve Robitaille, Co-Managing Partner at Idealist Capital. “We are excited to support the Entosystem team in the next phase of its scale-up in a booming industry.”
As mentioned by Claire Bisson, Vice-President and Head of Investment at Fondaction: “As a society, we need innovation and circular strategies that divert residual materials that still have potential from landfills. When it comes to reducing the carbon footprint of the livestock sector through the production of insect proteins dedicated to animal feed, we are doing a double whammy. In such a case, supporting the increase in production means increasing the impact.”
