Chongqing is a municipality located at the confluence of the Yangtze and Jialing rivers in southwestern China.
The two companies first announced their joint venture, which is based in Hong Kong and called Calysseo, in February this year.
The new plant under this JV, when built, will produce the single cell protein product, FeedKind. The companies plan to supply the SCP product to the Asian aquaculture feed sector, which represents 70% of the global market and is valued at US$28bn.
The Chinese factory will be the first commercialized FeedKind facility in the world, with the 20,000 tons capacity first phase expected to go into operation by 2022. Once the first phase is up and running successfully, the companies said a second phase investment will follow, adding another 80,000 tons capacity to speed up market penetration.
FeedKind is an SCP generated during the fermentation of methanotrophic microorganisms along with scavenger microorganisms and methane, ammonia and mineral salts. Methane is pumped through a fermenter and the microorganisms metabolize the gas to generate the high-protein biomass, which is dried and pelletized before use.
Despite challenges arising from the COVID-19 pandemic, the project has continuously progressed, through support from all parties, added the companies. A signing ceremony convened in the form of cloud meeting attended by officials from Chongqing municipal and Changshou District government in Chongqing, representatives from China Bluestar Group, Calysta and Adisseo, took place this week.
Zheng Xiangdong, Deputy Mayor of Chongqing, speaking on behalf of the Chongqing government and Changshou Region, said the location of the Changshou Region for the FeedKind project will contribute to the transformation and upgrade of natural gas chemical industry in Chongqing and the Changshou Region and would “further reinforce China’s leading position in the biochemistry industry in the world.”
Major strategic investment for Adisseo
Adisseo, which is subsidiary of China National BlueStar. is looking to become a leader in sustainable feed additives and ingredients for the aquaculture market in Asia.
Hao Zhigang, chairman of Bluestar Group and Adisseo, said the two companies involved in the JV had very high expectations for the project. “It is a major strategic investment for us. Being the controlling shareholder of Adisseo, we will continue to give our strongest support to Calysseo in building the first high-tech, safe and environmentally friendly manufacturing unit for FeedKind in Chongqing. On the business front, Adisseo is already developing and marketing high-quality feed additives for aquaculture and now is moving into a new dimension with FeedKind.”
Calysta also has a US-based partnership with Cargill in relation building an industrial scale production facility for the SCP.
“We are developing a global commercialization and diversification strategy and talking to potential partners in a number of markets and sectors,” said Calysta, back in February at the launch of the JV.