Insect protein producer lands big investment for expansion

Canadian company Entosystem, which produces insect proteins for animal and aqua feed and organic fertilisers for agriculture, has attracted a strategic investment of CAD 58 million (£32.7m).

The money will be used to accelerate growth by increasing its existing plant and constructing a second commercial plant.

Entosystem’s carbon-negative plant in Drummondville, Quebec, 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 fertiliser approved for organic farming.

The investors - Idealist Capital, Sanimax, and Fondaction – are all based in Quebec. Idealist Capital is an investment firm focused on accelerating the energy transition, and Fondaction is an investment fund focused on making Quebec’s economy fairer, more inclusive, greener and more efficient.

Sanimax is a family business specialising in rendering. It has 17 facilities in Canada, the United States, Colombia, and Brazil. The company recovers the remains of the food industry from 25,000 partners across the Americas and processes them at its factories to create ingredients for companies that use them to make everyday items.

“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,” said Cédric Provost, president and co-founder of Entosystem.

Martial Hamel, chief executive of Sanimax, said Entosystem’s sustainable approach aligned perfectly with his company’s strategic plan, values and mission of a greener environment.

Steeve Robitaille, co-managing partner at Idealist Capital, said: “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 fertilisers. We are excited to support the Entosystem team in the next phase of its scale-up in a booming industry.”