Enorm Biofactory, operator of Denmark’s largest insect protein facility, has initiated reconstruction proceedings as it reassesses its business model and seeks new investors to relaunch operations. The move comes after challenges in scaling production and securing consistent market demand for insect-based feed ingredients.
“We experienced strong interest and premium pricing potential until late 2024,” said Jane Lind Sam, chief operating officer at Enorm, told us. “But as we neared full-scale readiness, the market momentum waned significantly.”
Despite the Danish firm raising nearly €55m (US$63m) in funding, and the Danish agribusiness giant DLG becoming a co-owner, broader economic uncertainty, and the absence of real-world use cases for insect ingredients played a key role in last month’s filing of a petition with the bankruptcy court to initiate a reconstruction process, said the COO.
Enorm’s facility, completed in late 2023, is widely regarded as one of the most advanced in the Nordics. Spanning 22,000 m2, the factory is designed to produce more than 10,000 tons of Black Soldier Fly (BSF) protein annually, primarily for use in animal feed. However, construction delays, compounded by prolonged commissioning, placed financial strain on the business.
Those critical operational challenges have largely been resolved, according to the company. But the limited demand and lack of accessible financing pushed the board to initiate reconstruction.
The situation echoes broader struggles in the European insect protein sector, following high-profile setbacks from French producers Ynsect and Agronutris. Despite growing recognition of insect farming’s environmental benefits, many ventures are finding profitability elusive.
Enorm is now actively pursuing a new path forward. “Our primary objective is to identify one or more investors ready to take over and relaunch the project - potentially in partnership with existing lenders,” said Lind Sam.
Repurposing site to multi-stakeholder platform
A repositioning of the site as a broader bio-industrial platform with applications across food, feed, and even energy could be on the cards.
“We’re open to revisiting the business model, but what’s clear is that the facility itself offers enormous potential, either as a proprietary production site or as a multi-stakeholder platform within a circular economy framework,” added the COO.
Over the coming months, Enorm’s leadership will engage in intensive discussions with potential partners. According to Lind Sam, strategic alignment and operational capacity will be key criteria for any incoming investor.
Employee layoffs
During the reconstruction period, a small core team will remain active to safeguard operational readiness. While layoffs have occurred, the company remains optimistic about reactivating its experienced workforce once a solution is found.
“The facility itself is maintained in a state that enables rapid recommissioning once a decision is made,” stressed Lind Sam.
A spokesperson from DLG expressed disappointment: “Together with advisors, we explored several options to sustain operations, but unfortunately, none proved viable.”
