Smart yeast makes food industry more sustainable
- Sustainable banking newsletter
The ABN AMRO Sustainable Impact Fund is investing in Revyve, a company that has developed an alternative to eggs in prepared foods. Revyve’s yeast proteins produce 27 times fewer emissions than animal protein. It’s an innovative solution for the food industry, which has long been searching for more sustainable alternatives to this very common ingredient.
“Een ei hoort erbij” (Any time’s egg time) was a familiar Dutch marketing slogan in the 1970s. But today we know more about the environmental impact of egg production. That impact includes high levels of greenhouse gas emissions and the need for large amounts of water. So it’s no surprise that the food industry is looking for alternatives to eggs in processed food. One option that is rapidly gaining traction is a yeast product from the Dutch food-tech start-up . The ABN AMRO recently invested in the company.
Scalable impact
“Revyve makes yeast proteins that can replace eggs in food production,” says Rachelle Ruwiel, an investment associate with the ABN AMRO Sustainable Impact Fund. “We look for companies that can deliver scalable climate impact. Revyve is a good fit for us for two reasons. It has great growth potential. And its operations reduce greenhouse gases like carbon dioxide and methane emitted by the agri-food sector.”
Hanna Zwietering, Senior Investment Manager with the ABN AMRO Sustainable Impact Fund, adds, “Thirty percent of the greenhouse gases driving climate change are emitted by agriculture and food production.”
Maximising impact
The egg-replacing yeast has the potential to make a major difference. That’s because it can thicken, bind and stabilise food preparations. As a result, food producers around the world can use it in all sorts of products like meat alternatives, cakes, snacks and sauces. Hanna says the reduction in carbon and other greenhouse gas emissions could be significant. “In the production of Revyve’s yeast proteins, 27 times less carbon dioxide is emitted than in the production of animal protein. Plus there are no animal welfare concerns because you don’t need to keep animals to make these proteins.”
Revyve yeast’s small carbon footprint is due in part to the raw materials used in one of its products. “Brewer’s yeast, a by-product of beer making, is the key ingredient,” explains Rachelle. This means Revyve turns waste that would normally end up in animal feed into ingredients for human consumption. Revyve’s ingredients are both natural and cost-competitive.
Boosting growth
Thanks to the recent investment by the ABN AMRO Sustainable Impact Fund and others, Revyve is scaling up. With a larger production facility and a growing team, Revyve can now produce more than 1,600 tons of yeast protein a year. “That’s how we’re helping the company grow and increase its sustainable impact,” Hanna says. She points out that other investors have joined the bank in this venture, too. and other stakeholders in the food industry are also backing Revyve. “It’s great to see the sector stepping up and taking the lead,” says Rachelle. “There are several reasons for that. People are beginning to understand that change is essential. Stricter regulations are coming. And consumers are increasingly seeking sustainable alternatives.”
Revyve is now part of the ABN AMRO Sustainable Impact Fund portfolio. The fund invests a total of € 500 million in growing companies that can support the transition to a sustainable society (see also the ). The fund has previously invested in other companies such as the circular concrete producer and the technology company .