News

4 October 2024

NEW INVESTMENT SUPPORTS SUSTAINABLE INSECT-BASED PROTEIN

IFU is providing loan financing of USD 2 million to ProNuvo in Costa Rica to increase the sustainable production of insect-based protein. The investment seeks to further the circular economy and reduce the GHG footprint of animal feed. This deal also marks the launch of IFU Impact Ventures.

ProNuvo has built a sustainable insect protein business in Costa Rica: it harvests larvae of black soldier fly, a native insect species in many tropical countries. The larvae eat organic waste material from local fruit plantations and the residue they leave is transformed into organic fertilizer rich in microorganisms. Once the larvae grow, they are dried and sold to animal feed companies to use as an ingredient in their formulations. The production of insect protein generates less GHG emissions because it requires a fraction of the land and water needed to produce other more traditional sources of protein—which, in addition, also pose risks related to deforestation and overexploitation.

“At ProNuvo we transform waste into high-quality products to generate a positive environmental and social impact. We are proud to count on collaborators like IFU that are aligned with our mission to create a more sustainable food value chain for future generations.”

Miguel Carmona, co-founder and chairman of the board of ProNuvo.

“We are very pleased to support ProNuvo. Finding alternative ways to produce protein that are more environmentally sound and emit less CO2 matches our ambition to support the green transition in developing countries,” said Jesper Kaspersen, Senior Investment Manager in IFU.

Launch of IFU’s new Impact Ventures programme

IFU’s loan financing marks the launch of IFU Impact Ventures, which was set up to support early-stage companies in emerging markets that are or can become highly impactful from a climate and/or inclusion perspective. The proceeds will assist ProNuvo in scaling up production in their recently completed industrial-sized insect feed plant in Costa Rica.

“Insect-based protein is a nascent industry that needs risk capital to grow. With our new programme, IFU Impact Ventures, we are in a better position to support early-stage companies that have a high impact potential but are underserved by private capital” said Maria Paulina (Ina) Mogollon, Head of IFU Impact Ventures.