Clean Food Group (CFG), a UK-based bio-tech company, has announced a £2.5 million funding round led by Clean Growth Fund, a venture capital firm focused on climate-conscious businesses. This latest investment brings CFG’s total funding to £13 million and will be used to accelerate the commercialization of their sustainable oils and fats technology.
Earlier this year, we reported about the Spanish foodtech Heura Foods which secured €40M that marked plant-based meat startup funding milestone.
What are the sustainability challenges in food production
The global food system faces significant sustainability challenges. According to the press release, food production accounts for 25% of global greenhouse gas emissions, with monoculture farming practices contributing to deforestation and land exhaustion. Food waste is another major concern, representing 30% of global food production.
Clean Food Group tackles these issues by utilising food waste as a source to produce sustainable alternatives to traditional oils and fats through fermentation technology. Their initial product focuses on replacing high oleic palm oil, a major driver of deforestation, responsible for 20% of global deforestation.
A technology with environmental benefits
CFG’s technology platform leverages yeast strains to create fats that can be used in various applications, including baked goods, confectionery, and cosmetics. The company claims their product offers a 90% reduction in greenhouse gases compared to traditional palm oil and has been validated through a life-cycle assessment (LCA). Alex Neves, CEO and Co-founder of CFG, highlights the company’s goals: “We are delighted to be working with the Clean Growth Fund team… to create a healthier, more sustainable, global food system.”
Experienced team backed by industry leaders
CFG benefits from a team with expertise in biotechnology, food science, and retail. Their advisory board includes prominent figures in the food industry like Agronomics, Alianza Team, Doehler Group, and SEED Innovations Ltd. Beverley Gower-Jones, Founder and Managing Partner of Clean Growth Fund, sees promise in CFG’s approach: “Clean Food Group has an impressive team with a broad set of skills… They are well placed to commercialise the manufacture of palm oil substitutes and reduce the reliance the food industry has on palm oil.”
What we think about CFG
With this recent funding, CFG plans to accelerate the scale-up of their technology and navigate the regulatory hurdles for commercialization. Their goal is to have a fully funded commercialization plan in place by 2025. The success of CFG’s technology has the potential to significantly reduce the environmental impact of the food industry, particularly regarding deforestation and greenhouse gas emissions.
