Breakthrough Victoria pours $2.5 million into food waste rival to Goterra and Bardee

Breakthrough Victoria, the $2 billion state government-backed venture fund, has invested $2.5 million into a Melbourne startup recycling food waste as animal feed and fertiliser.

Viridian Renewable Technology, founded in 2016, lays claim to being Australia’s first large scale insect protein manufacturing plant. It has a commercial plant in Derrimut, in Melbourne’s western suburbs and will use the funds to increase factory capacity over the next year, creating 15 jobs and producing 1,300 more tonnes of insect protein annually.

Viridian hopes to build two more plants in Gippsland in food and agricultural industry hubs to support local businesses.

The company converts food waste into insect-based protein, oil and organic fertiliser using black soldier fly larvae, with the protein used in pet and animal feed, while the processing byproduct, called frass (aka insect poo) is used as a fertiliser.

Viridian’s process and product is similar to those of Mike Cannon-Brookes-backed Goterra, also founded in 2016, and Blackbird-backed rival Bardee, which is back in business after its former parent company was handed to liquidators earlier this year.

Goterra founder Olympia Yarger has been busy raising additional funding following a  $10 million bridging round last year, but has shown considerable traction, with partnerships in three states, including Brisbane’s Howard Smith Wharves precinct and in NSW, with the City of Sydney and Hyatt Regency Sydney, and is also building a plant in Western Sydney to support recycling for Woolworths, while in Tasmania, the company’s supplying the local aquaculture industry.

Goterra was joint winner of the 2024 Startup Daily Best in Tech award for Most Innovative Startup and last year won Best Sustainability Startup. The company employs around 55 people.

Viridian had taken a different path, creating its own pet treats brand, One with Everything, which has since been discontinued. The insect meal is now offered

Victorian treasurer Tim Pallas, who cut funding for Breakthrough Victoria by $360 million in the state budget earlier this year, said the $2.5 million investment in Viridian “will support innovation in sustainable agriculture, create more jobs in regional Victoria and reduce our emissions”.

Outgoing Breakthrough Victoria CEO, Grant Dooley said Viridian is a leader in alternative protein production at scale in Victoria.

“This investment aligns with BV’s commitment to be a catalyst for ideas and investment, while supporting a team that is making a significant impact on the industry and the planet,” he said.

Viridian CEO Martin Pike the company is creating a tangible environmental and economic impact.

“Viridian is proud to receive the support of Breakthrough Victoria to expand our protein recovery capacity and provide a highly sought-after solution to more Victorian food businesses’ food wastage problems,” he said.