San José, Costa Rica, June 19, 2024.- In a move to spur the circular economy in Latin America and the Caribbean, the International Finance Corporation (IFC) announced an initial investment of US$2 million in ProNuvo, a Costa Rica-based company specialized in the sustainable production of insect-based animal feed.
The IFC financing, part of the institution's Upstream activities, will allow ProNuvo to complete the construction of a 4,000 MT/year industrial insect feed plant in the district of Guápiles. Additionally, IFC will provide support to accelerate the global expansion of the nascent insect protein industry, a rapidly emerging field driven by a market opportunity of US$11 billion for aquaculture feed and the pet food market.
Formed in 2018, ProNuvo harvests black soldier fly larvae, a species native to Costa Rica and other tropical countries. The company uses organic waste material to feed the larvae, which are converted into high-quality fats and proteins. Furthermore, the feed residue from this process, known as frass, is transformed into organic fertilizer rich in microorganisms.
"At ProNuvo we transform waste into high-quality products to generate a positive environmental and social impact," said Miguel Carmona, co-founder and chairman of the board of ProNuvo. "We are proud to operate in a country that is committed to the environment and to have the support of collaborators like IFC that are perfectly aligned with our mission of creating a more sustainable food chain for future generations."
"IFC is delighted to support ProNuvo's growth and commitment to innovation, sustainability and competitiveness," said Sanaa Abouzaid, IFC regional manager for Central America. "As global industry catalysts, we seek to foster circularity and demonstrate the industrial-scale commercial viability of the project."
This Upstream investment is aligned with IFC's global strategy in the insect protein sector, which aims to promote its development based on quality and sustainability standards and, at the same time, catalyze innovation processes in coordination with other key actors of the value chain.
In addition to boosting the circular economy by using vegetables and fruits that would otherwise go to waste, ProNuvo's operations offer other important climate benefits. Compared to other animal feed sources, insect protein production has a lower GHG footprint and requires fewer resources. ProNuvo's process, for example, needs 10% of the soil, 8% of the time and 6% of the water versus other typical protein sources that pose risks related to deforestation and overexploitation.
About IFC
IFC—a member of the World Bank—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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