Breakthrough technology accomplishments combined with strategic product focus enables 75% gross margin

BlueNalu, a global leader in the development of cell-cultured seafood, announced today that it has unlocked the path to significant profitability in its first large-scale facility due, in part, to a series of breakthrough technologies. These technologies are expected to drastically reduce both operating and capital costs for large-scale production, and when combined with the company’s premium product and market focus, will enable a projected 75% gross margin. The company’s first product will be bluefin tuna toro, a highly prized and specialty portion that commands premium pricing across global markets.

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External rendering of BlueNalu's first large-scale facility with capability to produce up to six million pounds of premium seafood products annually. (Graphic: Business Wire)

In order to achieve commercial viability, the cell-cultured protein industry must overcome considerable technology challenges as determined by industry experts. These commonly known challenges include scalable cell growth technologies; the development of food-grade raw materials; production methods that enable regulatory approval and consumer adoption; and processes that support continuous volume production. In view of these challenges, species selection, product format and market fit are critical factors in the profitability equation.

“We believe that BlueNalu is the only company in the cell-cultured seafood industry to overcome each of these technology and market challenges, which will result in a scalable and highly profitable solution with demonstrable consumer benefits,” said Lou Cooperhouse, co-founder, president and CEO at BlueNalu. “We are pleased to announce today that we have ‘cracked the code’ for creating significant profitability with our cell-cultured bluefin tuna toro and a series of other higher-value products that will follow.”

BlueNalu has developed breakthrough technologies that pave the way to scalability and significant cost reduction, advancing the company towards its goal to produce nutritional, functional, and high-value seafood products. These include a non-GMO, single-cell suspension line with high growth rates that are expected to accelerate the company’s scale-up to large bioreactors. This also includes a revolutionary lipid-loading technique, that is projected to result in a significant reduction in capital expenditures and enable the company to make products with higher fat profiles and sensory attributes, such as the toro portion of bluefin tuna. Importantly, the company has also designed downstream processes to allow for continuous production and eliminate the need for plant-based scaffolds, which can affect product cookability, scalability and flavor.

“Over the past four years, our team has achieved remarkable scientific milestones which enable us to overcome the fundamental technology barriers required for success,” said Lauran Madden, Ph.D., CTO at BlueNalu. “In tandem with the plans for commercialization of our bluefin tuna, our team has continued to explore additional species using our platform technology. So far, we have developed hundreds of cell lines for eight different finfish species, and we have initiated projects to expand into other premium seafood categories.”

To validate its commercialization pathway, BlueNalu commissioned a techno-economic analysis (TEA) that was performed in collaboration with a leading global Engineering, Procurement, and Construction (EPC) firm and experts in bioprocess modeling. The work was conducted in order to model the technological performance and economic considerations of BlueNalu’s cell-cultured seafood production, incorporating the company’s technical milestones. The TEA required an in-depth evaluation of every piece of equipment, all associated costs, and the technologies and assumptions that will result in the Capex, OpEx, and production capacity of BlueNalu’s first large-scale facility. The analysis validated that the incorporation of single-cell suspension and lipid-loading could result in more than 5x cost reduction compared to production methods that do not utilize these technologies.

BlueNalu’s first large-scale facility is designed to enable multi-species capability to produce up to six million pounds of premium seafood products annually, utilizing eight 100,000L terminal bioreactors. The ~140,000 sq. ft facility will follow Good Manufacturing Practices (GMP) and BlueNalu anticipates that this factory will be able to commence production in 2027.

“We believe these landmark technologies, when combined with high-value, high-demand seafood products, are the winning equation to long term financial success,” said Amir Feder, CFO at BlueNalu. “Our projected 75% gross margin within the first year of production of our large-scale facility is unheard of in the food industry. This sets a very strong growth trajectory for the company, as we introduce additional products and establish new facilities around the globe.”

This announcement is the latest in a series of developments towards commercial introduction and large-scale product viability. Earlier this year, BlueNalu expanded into its 38,000 sq. ft pilot production facility located in San Diego, Calif. which is initially focused on pilot-production of its premium bluefin tuna toro and completing the processes that will be required for regulatory review. This is BlueNalu’s newest location and will also serve as the company’s innovation center, introducing additional species and product forms for market testing over the next few years.

BlueNalu’s value proposition has attracted a number of globally leading strategic partners, which include leading multinational companies located in Asia (Food & Life Companies, Mitsubishi Corporation, Pulmuone Corporation, Sumitomo Corporation, and Thai Union); in Europe (Nomad Foods and Nutreco); and in the U.S. (Griffith Foods and Rich Products).

To learn more about BlueNalu, please visit www.bluenalu.com.

About BlueNalu

BlueNalu’s mission is to develop great-tasting, healthy, safe and trusted cell-cultured seafood products that support the sustainability and diversity of our ocean. The company has developed a robust pipeline of seafood products from a wide array of species and plans to launch its first commercial product, premium bluefin tuna toro, following regulatory approval. BlueNalu is a member of the United Nations Global Compact and aligned with the UN Sustainable Development Goals, a blueprint to achieve a better and more resilient future for our planet. BlueNalu began its operations in 2018 and is based in San Diego, California.

Forward looking statement

This press release contains forward-looking statements including, but not limited to, statements related to the profitability and scalability of BlueNalu’s products, the development and commercialization of BlueNalu’s products, the production capacity of BlueNalu’s large scale facility and its ability to overcome each of the fundamental technology barriers required for long term financial success. These forward-looking statements are based on BlueNalu’s current expectations and inherently involve significant risks and uncertainties. BlueNalu undertakes no duty or obligation to update any forward-looking statements contained in this press release as a result of new information.

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