Butazyme executes groundbreaking opening for omega-3 project in Asia
Joint venture with Phoenix Energy involves scaling and co-developing the Butazyme omega-3 technology to 20,000 litres in phase I
Butazyme, a company wholly owned by Verde Media Group and its Biotech Division (VMBD), has broken ground and commenced construction of an omega-3 project site in Asia. The joint venture with Phoenix Energy is fully financed and involves scaling and co-developing the Butazyme omega-3 technology to 20,000 litres in phase I.
Butazyme has developed a proprietary microbial technology to produce high value omega-3 oils rich in long chain DHA and EPA fatty acids. Butazyme will receive a payment of US$500,000 for technology transfer and 10% royalty as licensing fees per annum as part of its contractual agreement with Phoenix.
The two parties have previously signed a major agreement to develop and market microbial-made 'DHA-rich' oils using organic feedstock and geo-fermentation technology. The agreement gives a central Asia exclusive commercial licence to Phoenix for existing and future co-developed long chain omega-3 intellectual property.
DHA omega-3 fatty acids have well-documented roles in heart and brain health, child and infant development, treating inflammation and other health functions. The primary source of these long chain omega-3s is fish and demand continues to grow faster than can be sustainably supplied from available stocks.
Human demand will require an additional 70 million tons of aquaculture-based fish at the same time wild caught fish stocks are predicted to be in severe decline by 2050. Therefore alternative sources to produce omega-3 oils are growing at a rate of 10-12% per annum and expected to grow to a $35bn industry in 2020.
Butazyme's technology can produce the same quality long chain omega-3 oils as those found in fish oil, but at five times the amount present in fish oil , which makes the proprietary process commercially viable. The company claims to be among the very few that address one of the most pressing omega-3 food supply solutions of the 21st century; alternative microbial-based omega-3 oil production is sustainable and provides long-term preservation of the world's marine ecosystem, it says.
'We are very excited to rapidly transit from financial closure to construction of the project site that involves scaling our proprietary technology for omega-3 production,' said Dr Abidi, CEO of VMBD. 'We are on schedule to start commercial scale-up and operations are expected to generate $25m revenue per annum in phase II.'
