The startup claimed to have the capacity to produce over 10,000 tonnes of insect meal per year © Enorm BioFactory
According to the company, the decision has been made in light of challenges in securing sufficient market demand for their products under current market conditions, as well as an extended ramp-up period which has required more funding than initially anticipated.
Enorm uses industrial byproducts as the basis for black soldier fly larvae--based protein production, building the largest and one of the most advanced insect factories in the Nordics. However, technical and operational challenges during construction and commissioning of the facility have caused delays.
“We have built a groundbreaking facility, and we still believe that production can be re-established and brought to full operation within a foreseeable timeframe. However, the market’s reluctance has made it difficult to secure adequate sales and financing,” said CEO, Carsten Lind Pedersen, in a press release.
The board of directors and shareholders have therefore – in collaboration with the company’s stakeholders – decided to initiate a reconstruction process. The aim is to establish a new foundation for the continuation of the project, possibly in a new structure or with new partners.
“It is with great regret that we have found it necessary to initiate a reconstruction. We have believed in this project and its potential from the very beginning – and we still do. We hope that the reconstruction can lay the groundwork for continuing the project and realising its sustainable vision,” added Pedersen.
In the coming period, Enorm Biofactory says it will work closely with the appointed reconstruction administrator and other stakeholders to identify and realise the options that best support a future-proof use of its facility. This will likely include insect production, but the facility may also serve as a platform for a broader bio-industrial setup, creating synergies across food, feed, and energy sectors.
