ISRAEL | Microalgae protein innovator Brevel, Ltd. has successfully implemented the FOAK (First-Of-A-Kind) strategy.
The company has built its first plant for proprietary industrial-scale fermenters for microalgae protein and completed the construction of its FOAK facility. It has already secured two commercial agreements with leading food and beverage companies.
A FOAK facility is a production line or factory that showcases new technology at a commercial scale for the first time. This provides confidence that the technology is viable in real-world applications, effectively minimising 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) illuminated the financing landscape for growing the alternative protein sector. The guide zeroed in on a key bottleneck financing for scaling alt protein manufacturing and suggested strategic solutions to overcome challenges.
GFI reported that the institute identified specific strategies for this mission. For example, protein-centered product makers can co-manufacture with protein or dairy companies.
Other alt-protein companies that prefer to build their 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.
"Our report clarified that companies have options, but these options are not enough. Collaboration, sustained effort, ingenuity, and patience are needed to unlock additional financing pathways,” said Sharyn Murray, GFI's Senior Manager of investor Engagement and Financing.
‘Together, governments, foundations, strategic companies, and investors can catalyse the funding the industry needs to realise alternative proteins’ transformative potential.”
Brevel has already achieved critical milestones in building its FOAK, such as moving from a pilot plant to a new, advanced, fully equipped facility ready to go commercial in early 2025.
It also has partnering agreements with two types of entities: Off-takers who want to use Brevel’s 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 has been working with additional commercial partners to secure and create a pool of contracts, build confidence with partners and investors, and ensure that the results of the following production lines will be fully commercialised. Such agreements can raise debt and provide confidence to manufacturing partners.
Brevel is also working with partners to build much larger production lines. Its FOAK facility will serve as a confidence point for these partners, who will finance and operate these next facilities.
“Food-Tech companies innovate the protein space. Several years ago, plant-based burgers greatly impacted the market, 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,” said Yonatan Golan, Brevel’s CEO and co-founder, along with his two brothers, Ido and Matan.
“Brevel’s proprietary technology and know-how enable us to create a chlorella-based protein that delivers a full amino-acid profile, a highly functional product at cost parity. It also has a neutral flavour and colour, is highly sustainable, and leaves a minimal environmental footprint.”
Brevel has cultivated its microalgae in indoor bioreactors via sugar fermentation. Unique to its technology is the simultaneous application of light and fermentation, which has enabled the generation of nutrient-rich microalgae in abundant yields without any form of gene modification.
Brevel kept capital expenditures significantly lower than traditional industry benchmarks by creating and building its fermenters and factories. The systems are undergoing test runs and are scheduled to be fully operational in early 2025.
