Startup specializing in gas fermentation, Novonutrients, announces closure and seeks a buyer for its assets; assures that the technology's underlying potential remains untouched.

Startup specializing in gas fermentation, Novonutrients, announces closure and seeks a buyer for its assets; assures that the technology's underlying potential remains untouched.

California-Based Gas Fermentation Company NovoNutrients Enters ABC Process

California-based gas fermentation company NovoNutrients has ceased operations and entered an Assignment for the Benefit of Creditors (ABC) process, an alternative to bankruptcy. This process aims to liquidate the company's assets to satisfy creditor claims due to financial difficulties primarily caused by the capital-intensive nature of their technology in a challenging investment climate.

The assets available in this ABC sale include U.S. patents covering gas fermentation and carbon utilization technologies, proprietary non-GMO microbial strains with verified performance, trade secrets related to bioreactor designs, scale-up models, and downstream processing, commercial-ready intellectual property, including the brands Novotein and Novoceuticals, lab and pilot-scale fermentation equipment, and validated protocols and data demonstrating high protein yields (around 73% protein from industrial CO₂).

These assets provide a foundation for companies interested in accelerating R&D and commercialization in sectors like carbon capture, industrial biotechnology, alternative proteins, and sustainable materials. NovoNutrients had proven the technology's viability in pilot phases but struggled to secure further capital to scale and commercialize due to the shifting investment landscape.

The deadline for bids on the assets was July 31, 2025, with interested parties directed to contact Forrest Reineke at Armanino Advisory LLC for more details on the assets and the bidding process.

Meanwhile, other companies are also exploring gas fermentation technology for food and feed production. LanzaTech, for instance, is moving into this field, having honed its technology for ethanol and specialty chemical production. NovoNutrients' former CEO, David Tze, explained that the challenge was the capital intensity in a shifting investment climate.

The ABC process offers a rare opportunity to acquire proven gas fermentation technology with broad, multi-sector applications. However, some sustainability claims for first-generation gas fermentation plants may not necessarily apply. Specialized bioreactors optimized for effective gas-liquid mixing and safety measures for handling gases can add to capital costs.

Finding affordable, sustainable sources of "green" hydrogen is also challenging. Nevertheless, the technology developed by NovoNutrients can produce protein with 73% content and high-value carotenoids from waste CO₂. Interested parties should contact Forrest Reineke at Armanino Advisory LLC for more details on the assets and the bidding process.

In addition to NovoNutrients, several firms are exploring gas fermentation technology for food and feed production, including Calysta, Circe, Solmeyea, Air Protein, Solar Foods, Aerbio, and Unibio. The future of gas fermentation technology in the food and feed industry looks promising, with many companies showing interest and investing in research and development.

1. Science play a significant role in the gas fermentation process, as demonstrated by NovoNutrients' technology.
2. Workplace-wellness can benefit from the research and development in gas fermentation technology.
3. Medical-conditions such as malnutrition could be addressed through the production of alternative proteins using gas fermentation.
4. Chronic diseases like heart disease could potentially be mitigated by diets rich in proteins, produced by gas fermentation technologies.
5. Cancer research may find applications in the use of carotenoids, a high-value product from NovoNutrients' technology.
6. Respiratory conditions might be improved by reducing greenhouse gas emissions, a byproduct of some fermentation processes.
7. Digestive health can benefit from the research into microbial strains, a key component of NovoNutrients' technology.
8. Eye-health could potentially improve with the use of vitamins and nutrients, which could be produced using gas fermentation technology.
9. Hearing loss prevention may indirectly benefit from gas fermentation, as it contributes to reducing noise pollution in manufacturing processes.
10. Health-and-wellness of future generations may be positively impacted by the sustainable practices in the gas fermentation industry.
11. Fitness-and-exercise routines could be improved with the high-protein, plant-based products produced by gas fermentation.
12. Autoimmune-disorders may find treatments through the research into novel microbial strains in gas fermentation.
13. Climate-change can be mitigated by replacing traditional fossil fuel-based industries with sustainable ones like carbon capture using gas fermentation technology.
14. The manufacturing industry can become more sustainable by adopting gas fermentation technologies for carbon utilization.
15. Therapies-and-treatments for various medical conditions may be developed using the proprietary microbial strains and downstream processing knowledge from NovoNutrients.
16. Nutrition can be enhanced by using the high-protein, sustainable products from gas fermentation technology.
17. Cardiovascular-health can improve with a diet rich in proteins, such as those produced by NovoNutrients' gas fermentation technology.
18. The industry can invest in gas fermentation technologies for carbon capture and sustainable material production, as demonstrated by the assets available in the ABC sale.
19. Medicare costs could potentially decrease with the widespread adoption of alternative proteins produced by gas fermentation, reducing instances of malnutrition and related health issues.
20. CBD products, known for their health benefits, could potentially be produced using gas fermentation technology, although this requires further research.
21. Neurological-disorders may find treatments through the development of new compounds using the gas fermentation process.
22. Environmental-science can benefit from the research into gas fermentation's impact on greenhouse gas emissions and sustainable materials.
23. Finance can play a crucial role in supporting the growth and commercialization of promising gas fermentation technologies.
24. Energy production can be made more sustainable by using gas fermentation technology to produce "green" hydrogen.
25. Skin-conditions may benefit from the research into high-value carotenoids, a byproduct of NovoNutrients' technology.
26. Space-and-astronomy may one day utilize gas fermentation technology for food production, providing a solution for long-term missions. Interior-design, cooking, lifestyle, outdoor-living, food-and-drink, dining, family-dynamics, investing, home-and-garden, home-improvement, baking, beverages, love-and-dating, business, recipes, global-cuisines, real-estate, data-and-cloud-computing, gardening, sustainable-living, technology, healthy-cooking, relationships, pets, deals-and-discounts, shopping, product-reviews could all be indirectly impacted by the development and adoption of gas fermentation technologies in various industries.

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