Residua Biocircular – Tecnnova

Investing in Impact

P4G awarded the partnership with US $367,000 in grant funding. 

Residua Biocircular uses Black Soldier Fly Larvae (BSFL) to convert organic waste into high-protein animal feed and biofertilizer. This solution helps address dual challenges associated with waste management and the growing demand for animal feed in Colombia. Additionally, in a country where more than 77% and 95% of protein for animal feed and fertilizer respectively are imported, this partnership boosts domestic production and valorization of waste. 

BSFL animal feed is high-quality protein that is used by the pet food and animal feed industries (poultry, swine and fish production), and by pharmaceutical companies. The byproducts are also used as high value biofertilizer. 

Insect farming requires much less land use to yield 1 kilogram of protein when compared to traditional animal feed sources such as soy. In addition to alleviating the pressure on land use, it also uses about 63% less water when compared to soy. The process is highly productive and scalable with protein production at least 1-2 times per month when compared to 1 – 2 growing cycles per year for soy. Insect farming is also potentially a less carbon intensive process for food waste management when compared to composting which releases higher levels of carbon into the atmosphere. 

On the supply side, Residua Biocircular is negotiating collaborations with agrifood companies including breweries, cereal processors and coffee and cocoa companies to offtake their waste and ensure a steady stream of high-quality waste to scale up production. On the buyer side, Residua Biocircular is exploring relationships with clients in the poultry and pet food industry to secure long-term contracts. 

Tecnnova will support Residua Biocircular in the research and development needed to stay at the cutting edge of this technology and share learnings on the benefits of insect-based protein. It will also help Residua Biocircular engage with government stakeholders on potential interventions that would improve the enabling environment for the insect farming industry in Colombia. 

The partnership hopes to work with the Colombian government on amendments to regulations regarding the legal requirements for waste processing and valorization through insect farming. 

Between April to June 2024, Residua Biocircular developed the final design for a mid-size plant as part of its expansion plans. The startup has since begun processing waste at Lebrija 2 (the second facility), which has allowed it to increase processing capacity. The second phase of construction is underway, which will increase the startup’s capacity to process waste from 45 tons a month to 200. 

To ensure a consistent supply of high-quality waste, Residua Biocircular is piloting supply agreements with four waste generators such as non-alcoholic beverage producers, breweries, dairies and flour mills. 

Early pilots have been successful with the startup processing more than 13 tons of waste in June 2024. Building on successes in Mexico with Grupo Modelo, Residua Biocircular expects to receive brewery waste from Bavaria, Colombia’s largest beverage company. The waste from this supply chain will allow the startup to meet the maximum processing capacity of its Lebrija 2 facility which is 150 tons a month. 

Residua Biocircular is also testing new sources of waste including mango pulp, egg byproducts and yeast. The partnership is working with universities on the testing and analyses of new waste sources and product lines. Residua Biocircular is currently in trials with pet food companies interested in purchasing insect protein and will work with the companies on product lines and testing. The startup is prioritizing developing product lines for different sectors including poultry, swine and cattle. Some lessons learned as part of these discussions include: 

• Longer negotiation timelines to account for multiple internal approvals and validation trials
• Challenges competing with traditional and cost-effective commodities such as soy and fish meal
• Lack of market incentives to replace unsustainable commodities 

Residua Biocircular has implemented clear mitigation strategies and adjustments to address all the lessons and challenges and is already seeing positive results with higher-than-expected sales. 

A critical component for investment readiness is intellectual property rights and protection and Residua Biocircular has been identifying its IP portfolio and working on registering patents in Colombia and other Latin American countries. 

As part of its ongoing commitment to delivering community level impact, Residua Biocircular has been working with farmers to use BSFL technology to improve crop productivity and for animal protein production. The startup is planning more such pilots, with a second one scheduled to support women cacao producers in Santander, Colombia. 

During the partnership period, Residua Biocircular aims to raise more than US $1.5 million in investment and create 25 new jobs. It hopes to avoid more than 150,000 metric tons of carbon emissions by 2030. It is currently processing more than 45 tons of organic waste and aims to increase that to 200 metric tons per month. The partnership will also work on building the capacity of smallholder farmers to process their waste into high quality animal protein and fertilizer and will integrate new sources of waste into its process from three new industries that generate large volumes of waste. 

To date (December 2024), the startup has raised $275,000 and created 13 new jobs. 

The partnership comprises the following partners: Residua Biocircular (lead business partner); Tecnnova (lead administrative partner).