May 17, 2020

Calysta receives $30mn investment from BP Ventures to improve global food supply chain security

Calysta
BP Ventures
Sustainability
Climate Change
Harry Menear
2 min
Calysta will use the $30mn from BP Ventures to launch its natural gas-grown protein feed on a worldwide scale
The challenges facing the global food supply chain are increasing every year. According to the United Nations, the global population is expected to reac...

The challenges facing the global food supply chain are increasing every year. According to the United Nations, the global population is expected to reach 9.8bn by 2050, meaning that food production will need to grow by as much as 70% in order to meet demand. 

On top of that, increasing instability of global ecosystems caused by industrial pollution, unsustainable fishing and farming techniques, and unpredictable and extreme weather patterns resulting from skyrocketing carbon emissions only exacerbate the issue. With permafrost melting, a full-blown mass extinction underway, and no signs that the world’s biggest polluters will make the changes necessary to reverse the trend before the point of no return, securing a global food supply is more important than ever. 

This week, Menlo Park-based startup Calysta announced that it has received a $30mn investment from BP Ventures in support of a worldwide rollout of its alternative protein product, FeedKind. 

Developed as an alternative feed ingredient for fish, livestock and pet nutritional products, FeedKind is a single-cell protein produced through a proprietary, commercially-validated gas fermentation process using naturally occurring, non-GM microbes with the unique ability to use methane as their energy source. 

Calysta's FeedKind product is a far more efficient source of protein than traditional alternatives.

The ability to create animal feed from natural gas will, hopefully, allow for the continued and increased production of animal-based foodstuffs in a stable supply chain. 

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“Welcoming BP as a partner is a tremendous step forward for FeedKind protein and the best indicator yet that Calysta’s solution to food insecurity in a resource-constrained world can and will achieve global scale,” said Alan Shaw, Ph.D., Calysta President and CEO.

“The problems facing our food production supply chains have never been more clear, with increasing evidence that land and water scarcity are key challenges to meeting future demand for protein. FeedKind makes more from less, producing feed for livestock, fish and pets while making smarter use of our resources.

“We look forward to working closely with BP as we prepare to deliver this product to the world. Calysta will benefit from BP’s operational excellence and focus on safety when deploying multiple production plants.”


 

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Jun 16, 2021

EU and US agree end to Airbus-Boeing supply chain tariffs

supplychain
Boeing
Airbus
tariffs
3 min
Supply chains embroiled in Airbus-Boeing dispute will no longer be impacted by $11.5bn tariffs imposed on food and beverage, aircraft and tobacco

The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic. 

Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years. 

It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC. 

The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn. 

In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products. 

Boeing-Airbus dispute by the numbers  

  • The dispute began in 2004
  • Tariffs suspended for 5 years 
  • $11.5bn worth of goods affected by tariffs
  • $3.3bn in duties paid by businesses to date 
  • 15% levy on aircraft and 25% on non-aircraft goods suspended

Both sides welcome end to tariffs 

European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.

“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.

Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”. 

The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."

This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.

Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”

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