Knip is expanding its production capacity for postbiotics while avoiding competition in commodity protein, paving the way for more sustainable aquaculture practices.
Knip, a startup based in Boston, is making significant strides in producing functional ingredients for both food and animal feed through the innovative process of biomass fermentation. The company has ramped up its manufacturing capacity by transitioning its postbiotic ingredient, JUV, to larger bioreactors with a capacity of 165,000 liters at a contract manufacturing facility, which boasts a total capacity of 10,000 tons.
Since its commercial launch 18 months ago, Knip has been working with two commercial clients, transitioning from a previous partner that only offered a 250-ton capacity at the 60,000-liter scale. This expansion positions Knip favorably as it continues to establish itself in the industry.
Market Differentiation: Positioning Beyond Commodity Proteins
Unlike companies that focus on single-cell protein, such as Calysta—which targets commodity protein production through gas fermentation—Knip is intentionally avoiding that market segment. As CEO Caitlin Wege elaborated, "We're not in the business of creating a commodity protein that has to compete with the prevailing costs of fishmeal and soy, which makes profitability challenging."
By utilizing conventional fermentation equipment, Knip ensures that capital expenditures remain low while maintaining positive margins through the use of a contract manufacturing organization (CMO). This strategic choice allows the company to focus on a niche that aligns with emerging sustainability trends without getting embroiled in the price competition characteristic of commodity protein.
Introducing JUV: A Functional Ingredient for Aquaculture
Knip is strategically positioning its patented ingredient, JUV, not as a direct substitute for soy or fishmeal but as a potent functional ingredient aimed at enhancing stress resilience in aquatic species, particularly fish and shrimp. This ingredient is designed for low inclusion rates between 2-5%, challenging the status quo of feed composition in aquaculture.
Wege further confirmed the ingredient’s status, stating, "JUV boasts FDA GRAS status, allowing its use in up to 10% of finfish feed and up to 6% in crustacean diets." Instead of being included continuously, JUV can be "pulse fed" during critical periods, such as transfers or vaccinations. This approach aims to enhance survival rates; for instance, in a demo with a large trout producer, survival rates increased significantly from 70% to 85% with JUV's application.
Production Process: Whole-Cell Biomass Approach
Founded in 2013 by Larry Feinberg and Chris Marx, Knip utilizes a genetically engineered strain of a leaf bacterium to produce JUV. The process avoids isolating individual compounds by fermenting the entire microbial biomass. Wege explained, "This is what enhances the efficacy of JUV as a postbiotic. We utilize the whole biomass without extraction, going through pasteurization and spray drying." This comprehensive method retains various beneficial components, such as rare carotenoids that may serve as antioxidants comparable to astaxanthin.
One key advantage of JUV is its ability to confer antioxidant benefits without affecting the hue of fish, which can be particularly advantageous for aquaculture formulators. The ingredient’s stability is promoted even during extreme processing conditions like extrusion, making it easier to incorporate into existing feed systems without compromising the integrity of the pellets.
Transitioning to Sustainable Feedstocks
Currently, Knip utilizes methanol from multiple sources as the carbon feedstock for its fermentation processes but plans to shift to greener alternatives—specifically, green methanol derived from captured carbon dioxide and renewable hydrogen or from biomass like forestry residues and agricultural waste. Wegen noted that, although this transition might come with higher operational costs, it would only lead to a minor increase in cost of goods sold (COGS), particularly as the availability of green methanol expands.
Future Directions: Expanding into Pet Food and Human Nutrition
Knip is intensifying its focus in Latin America, especially within Ecuador’s shrimp industry. By partnering with local distributors, the company is developing a strong market presence and garnering interest from producers eager to trial its products. The company is also engaging with the North American salmon sector to explore further applications.
Beyond aquaculture, Knip is investigating opportunities in the pet food sector, working under non-disclosure agreements with a major ingredient manufacturer to assess the feasibility of integrating JUV into dog and cat food. Anecdotal evidence suggests potential improvements in animal health conditions, ranging from digestion to skin health.
While human nutrition is on the horizon, Wege emphasized that it remains exploratory. The firm recently completed a bridge funding round exceeding expectations, indicating healthy investor interest and signaling potential for future growth as they prepare for subsequent funding rounds.
The definition of “postbiotic,” as provided by the International Scientific Association for Probiotics and Prebiotics (ISAPP), underscores its health benefits, adding critical credence to Knip's mission and innovative approaches within the aquaculture sector.
As Knip continues to carve out its niche in the fermentation space, focusing on sustainability and functional benefits, it presents an intriguing model for future innovation in both aquaculture and beyond.
