State government-backed venture and growth capital firm Breakthrough Victoria has invested $2.5 million in Viridian Renewable Technology, a Melbourne company that uses insects to convert food production waste to protein ingredients for pet and livestock feed.

Viridian is operating an initial commercial plant at Derrimut, on the western outskirts of Melbourne. The company plans to increase factory capacity by 1,300 tonnes annually over the next 12 months creating 15 new direct jobs.

Future plans include building two more plants in Gippsland that will be situated within food and agriculture hubs to support local businesses.

The company says its black soldier fly larvae-based protein has higher nutritional value than many conventional ingredients for pet and animal feed and is produced with significantly low environmental impact. Processing waste is used for fertiliser products.

It is estimated that total food wastage in Australia amounts to 7.6 million tonnes and this generates around 3% of greenhouse gas emissions. Viridian is targeting waste from industrial scale food production. The company has developed large-scale highly automated compact production units designed to be located adjacent to food production facilities.

Breakthrough Victoria chief executive Grant Dooley said: “This investment aligns with BV’s commitment to be a catalyst for ideas and investment, while supporting a team that is making a significant impact on industry and the planet.”

Viridian chief executive and founder Martin Pike said Breakthrough Victoria’s investment would enable the business to expand capacity and reduce food wastage problems.

“We are excited to contribute more to Victoria’s growing circular economy sector and create a tangible environmental and economic impact,” he said.    

Image: Black soldier fly larvae.