FGen AG, a Ginkgo Bioworks Subsidiary, Awarded Funding Through European Innovation Council's Pathfinder Programme For Sustainable Milk Protein Production Project

Rhea-AI Summary

FGen AG (NYSE: DNA) awarded funding for sustainable milk protein production using CO2 and electricity

Positive

• FGen AG, a subsidiary of Ginkgo Bioworks, has been awarded funding through the European Innovation Council's (EIC) Pathfinder Challenge program for a four-year, €5.5M project.
• The project aims to develop a new, sustainable approach to milk protein production using only carbon dioxide and electricity, with the potential to revolutionize the food industry.
• The consortium, led by Solar Foods and including leading researchers from the University of Groningen and RWTH Aachen University, was selected from over 440 proposing teams for their innovative project named HYDROCOW.
• FGen's powerful screening technology will be leveraged to rapidly search through up to 1 million hydrogen oxidizing bacteria (HOB) variants in a single run, identifying strains capable of producing valuable whey proteins from CO2.
• The success of the HYDROCOW project could enable novel nutrition-focused bioproduction methods that are not reliant on photosynthesis and conventional agriculture, while saving time, energy, and land associated with current practices.

Negative

• None.

Biotech Analyst

The HYDROCOW project, with its focus on sustainable bioproduction of milk proteins, represents a significant innovation in the biotech and food technology sectors. The project's success could disrupt the traditional dairy industry and offer a new avenue for protein production that is less resource-intensive. This aligns with increasing consumer demand for sustainable and ethical food sources, potentially opening up new markets and investment opportunities.

From a biotech perspective, the use of genetically engineered hydrogen oxidizing bacteria (HOB) to convert CO2 into beta-lactoglobulin is a groundbreaking approach. If FGen's screening technology can identify high-performing HOB strains, it could set a precedent for other microbial-based protein production, influencing sectors beyond dairy, including pharmaceuticals and biofuels. Investors should monitor the scalability and regulatory acceptance of such technologies, as these factors will heavily influence market potential and risk.

Sustainability Expert

Initiatives like HYDROCOW are at the forefront of the sustainability movement, addressing key issues like climate change, land use and energy consumption. The project's ability to produce food ingredients from atmospheric CO2 could significantly reduce the carbon footprint of the food industry, which is a major contributor to global emissions. This alternative protein source could also alleviate pressure on land resources, potentially reducing deforestation and biodiversity loss associated with traditional agriculture.

For stakeholders, including investors, environmental groups and policymakers, the implications are far-reaching. A successful outcome could accelerate the transition to a circular economy and enhance the European Union's position as a leader in green technology. However, the project's high-risk/high-reward nature suggests a cautious investment approach, with attention to ongoing research results and pilot-scale validations.

Agricultural Economist

The HYDROCOW project's potential to revolutionize the dairy industry through microbial systems has significant economic implications. By bypassing the need for livestock, such technology could reduce costs associated with animal husbandry, feed, land and water usage. This could lead to lower prices for consumers and create a more resilient food supply chain less susceptible to disruptions like climate change or pandemics.

However, the transition to microbial-based production could have a disruptive impact on traditional dairy farming, with potential job losses and societal shifts. Economies heavily reliant on agriculture might face challenges adapting to this new paradigm. Investors should consider the long-term economic impacts, including the potential need for policy interventions to support affected communities and the importance of strategic partnerships to foster market acceptance of these novel food products.

• The EIC has tapped FGen and partners to work on developing a sustainable, alternative approach to milk production using only CO₂ and electricity
• FGen will focus on ultra-high throughput screening of bacteria engineered to convert CO₂ into a major whey protein
• Utilizing microbial systems — instead of livestock — to produce valuable food ingredients will be critical for sustainable bioproduction of foods, medicines, and chemicals

BASEL, Switzerland, Dec. 19, 2023 /PRNewswire/ -- FGen AG, a subsidiary of Ginkgo Bioworks (NYSE: DNA), based in Switzerland, has been awarded funding through the European Innovation Council's (EIC) Pathfinder Challenge program. This is part of an international research consortium that aims to develop a new, sustainable approach to milk protein production using only carbon dioxide and electricity. The consortium, led by Finnish food tech innovator, Solar Foods, and also including leading researchers from the University of Groningen and RWTH Aachen University, was selected from more than 440 proposing teams for their four-year, €5.5M "high-risk/high reward" project playfully named HYDROCOW.

Converting CO₂ directly into valuable proteins

The HYDROCOW team will work to genetically engineer hydrogen oxidizing bacteria (HOB) to convert carbon from CO₂ gas and nitrogen from N2 into beta-lactoglobulin, a major whey protein found in cow's milk. Beta-lactoglobulin is used in food applications such as infant formula, protein supplements, and baked goods. Microbial systems that can produce valuable food ingredients and other products directly from CO₂ will be critical for sustainable bioproduction of foods, medicines, and chemicals.

Leveraging FGen's powerful screening technology

Engineered microbes capable of producing beta-lactoglobulin will undergo ultra-high throughput testing at FGen, leveraging its cutting-edge platform that makes it possible to rapidly search through up to 1 million HOB variants in a single run. The highest performing HOB strains identified by FGen will then be validated by Solar Foods under autotrophic growth conditions in an industrially-relevant bioproduction environment. 

"We built our platform to help innovative companies like Solar Foods enable sustainable nutrition solutions, including alternative dairy. We're excited to leverage our powerful screening technology through FGen, and to play a critical role in this space for our commercial and government partners around the world," says Dr. Andreas Meyer, Senior Foundry Lead at Ginkgo Bioworks and co-founder of FGen. "This project is built around a world-class team of research and development partners, and we're proud to do our part to bring this promising technology forward."

"The EIC supports the HYDROCOW project in its pursuit to develop sustainable bioproduction methods directly from CO₂ and nitrogen compounds," said EIC Project Officer Olivier Dahon. "EIC is supporting scientific innovation through our portfolio approach for funding research projects under the Pathfinder Challenge: 'Carbon Dioxide and Nitrogen Management and Valorisation.' Bringing precision fermentation for sustainable food ingredients from the lab to the market is considered critical for the achievement of the EU Green Deal. Success in this area can provide the technological basis to contribute to a sustainable development of our society," said EIC Program Manager Francesco Matteucci.

If successful, the HYDROCOW project will enable novel nutrition-focused bioproduction methods that are not reliant on photosynthesis and conventional agriculture, instead converting atmospheric carbon directly into whey proteins, while saving time, energy, and land associated with current practices in the process.

About Ginkgo Bioworks
Ginkgo Bioworks is the leading horizontal platform for cell programming, providing flexible, end-to-end services that solve challenges for organizations across diverse markets, from food and agriculture to pharmaceuticals to industrial and specialty chemicals. Ginkgo's biosecurity and public health unit, Concentric by Ginkgo, is building global infrastructure for biosecurity to empower governments, communities, and public health leaders to prevent, detect and respond to a wide variety of biological threats. For more information, visit ginkgobioworks.com and concentricbyginkgo.com, read our blog, or follow us on social media channels such as X (formerly known as Twitter) (@Ginkgo and @ConcentricByGBW), Instagram (@GinkgoBioworks and @ConcentricByGinkgo), Threads (@GinkgoBioworks) or LinkedIn.

Funding for FGen AG is provided by the Swiss State Secretariat for Education, Research and Innovation (SBFI Nr. 23.00349).

Forward-Looking Statements of Ginkgo Bioworks
This press release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the capabilities and potential success of the partnership and Ginkgo's cell programming platform. These forward-looking statements generally are identified by the words "believe," "can," "project," "potential," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) volatility in the price of Ginkgo's securities due to a variety of factors, including changes in the competitive and highly regulated industries in which Ginkgo operates and plans to operate, variations in performance across competitors, and changes in laws and regulations affecting Ginkgo's business, (ii) the ability to implement business plans, forecasts, and other expectations, and to identify and realize additional business opportunities, (iii) the risk of downturns in demand for products using synthetic biology, (iv) the uncertainty regarding the demand for passive monitoring programs and biosecurity services, (v) changes to the biosecurity industry, including due to advancements in technology, emerging competition and evolution in industry demands, standards and regulations, (vi) our ability to realize the expected benefits of merger and acquisition transactions, (vii) the outcome of any legal proceedings against Ginkgo, including as a result of recent acquisitions, (viii) our ability to realize the expected benefits from and the success of our Foundry platform programs, (ix) our ability to successfully develop engineered cells, bioprocesses, data packages or other deliverables, and (x) the product development or commercialization success of our customers. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the "Risk Factors" section of Ginkgo's quarterly report on Form 10-Q filed with the U.S. Securities and Exchange Commission (the "SEC") on November 8, 2023 and other documents filed by Ginkgo from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Ginkgo assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Ginkgo does not give any assurance that it will achieve its expectations.

GINKGO BIOWORKS INVESTOR CONTACT:
investors@ginkgobioworks.com 

GINKGO BIOWORKS MEDIA CONTACT:
press@ginkgobioworks.com 

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SOURCE Ginkgo Bioworks

What is the name of the company awarded funding for sustainable milk protein production using CO2 and electricity?

FGen AG, a subsidiary of Ginkgo Bioworks, has been awarded funding for this project.

What is the ticker symbol of FGen AG?

The ticker symbol of FGen AG is DNA.

What is the name of the project awarded funding through the European Innovation Council's (EIC) Pathfinder Challenge program?

The project awarded funding is named HYDROCOW.

What is the goal of the HYDROCOW project?

The goal of the HYDROCOW project is to develop a new, sustainable approach to milk protein production using only carbon dioxide and electricity.

How many proposing teams were considered for the funding of the HYDROCOW project?

Over 440 proposing teams were considered for the funding of the HYDROCOW project.

What is FGen's role in the HYDROCOW project?

FGen's powerful screening technology will be leveraged to rapidly search through up to 1 million hydrogen oxidizing bacteria (HOB) variants in a single run, identifying strains capable of producing valuable whey proteins from CO2.