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DLG becomes co-owner of Enorm Biofactory

DLG invests heavily in Enorm Biofactory and next year, the company will open Denmark’s first production of insects on a commercial scale.

That is the result of a funding round, where the Enorm Biofactory has raised a three-digit million amount and where DLG becomes co-owner of the company. The new insect factory adds new alternative protein sources to the market. Enorm Biofactory has raised DKK 370 million through a funding round to be invested in the establishment of the largest commercial insect production in Scandinavia. The end product can be used as a protein source for animal feed.

The agricultural company DLG will become a new major shareholder of Enorm Biofactory, which is expected to deliver 11,000 tons of insect protein per year. In addition to DLG’s investment, the Danish Green Investment Fund and Nykredit Bank also contribute with significant funding.

Carsten Lind Pedersen, founder and co-owner of Enorm Biofactory, sees the agreement as a great achievement for the company. “We are very proud of what we have achieved so far. With this investment in Enorm, we are ready to take the next step, and we are thrilled to welcome new partners to be a part of our journey. Together we have created a dream team with strong synergies which will be very beneficial for all of us,” says Carsten Lind Pedersen.

Investment in alternative protein sources

During the past years DLG Group has invested heavily in alternative protein sources including a pea factory in Germany and a production of grass proteins in Western Jutland. The investment in Enorm Biofactory is yet another way to produce and increase the demand of alternative protein sources which is a growing market globally.

Group COO in DLG Jesper Pagh sees Enorm as a natural partner in the search for locally produced proteins. “Alternative protein sources in feed are one of the keys to a more sustainable agricultural production. With the investment in Enorm, we join an innovative local partner that produces high-quality proteins,” says Jesper Pagh.

Preliminary tests of insect proteins in the feed are looking promising. Especially in the fishing industry tests have shown good results. In addition to that, there is a high potential for insect proteins in poultry and piglet feed, which can have a positive impact on both productivity and animal health. “At the moment we see an explosive growing development and knowledge of insect proteins. Therefore, DLG is proud to take the lead as we are convinced that insect farming has a huge potential,” says Jesper Pagh.

Scaling up the pilot plant

Over the past three years, Enorm Biofactory has built a pilot plant in Jutland, demonstrating technologies and management to enable the breeding and growth of insect. The pilot plant has been developed in close cooperation with SKOV A/S, which provides ventilation solutions and Sealing System, which is one of the leading suppliers of complete packaging and palletizing solutions.

“Together with our partners, we have created a pilot plant that have been crucial for us to take the next step,” says Carsten Lind Pedersen, who also sends a thank you to the Danish Environmental Protection Agency, that has co-financed the pilot plant. The new factory is scheduled to be completed in the beginning of 2023.

Facts about the project

  • Enorm has closed a funding round of DKK 370 million.
  • DLG becomes a major shareholder in Enorm Biofactory.
  • The funding will include investment in the largest insect factory in Scandinavia.
  • The factory is expected to be completed in early 2023 and production of 100 tons of larvae in operation by the end of 2023. The building area is approximately 24,000m2, of which 18,000 m2 are newly constructed.
  • Enorm Biofactory is founded by Carsten Lind Pedersen, Jane Lind Sam, and Lasse Hinrichsen.
  • Today, there are 12 full-time employees and 4 part-time employees in Enorm. It is expected that there will be 55-60 employees by 2023.
  • In September 2017, it became legal to put insects in feed for fish and 2021 to pigs and poultry.

Source: DLG Group