Milking a global opportunity
Precision fermentation is bubbling up as the next big trend as biotech startup attracts $7m in funding.
Brisbane-based startup Eclipse Ingredients has officially stepped out of stealth mode, setting its sights on the emerging human lactoferrin market.
Spun out of CSIRO, the biotech startup has launched with $7 million in funding for its mission to develop ingredients using yeast instead of traditional animal sources.
The company’s platform leverages precision fermentation – a process that enables microorganisms like yeast to produce complex, bioidentical milk proteins typically found in animals or humans.
Funding the startup’s ambitions is the Commonwealth Government’s Food and Beverage Accelerator, which contributed $2.9 million, among other backers that included agri-foodtech investor AgFunder.
Eclipse says its initial focus is the production of human lactoferrin, an important protein found in breast milk. According to CSIRO, this powerful compound has anti-inflammatory, antimicrobial, immune-boosting, and iron-binding properties, and its first commercial products are expected by 2027.
“We’re harnessing advances in the age-old fermentation process to create ingredients that simply weren't previously accessible,” said CEO and co-founder Siobhan Coster.
“Precision fermentation works by engineering microorganisms, such as yeast, to produce proteins and other compounds that mirror those found in humans or animals with similar nutritional and functional profile."
“We’re harnessing advances in the age-old fermentation process to create ingredients that simply weren't previously accessible.”
The world needs to produce more protein, from more sources, into the future, the CSIRO said. However, future production methods will also need to be scalable, ethical, and environmentally sound.
Although Eclipse is initially focusing on cosmetic applications, the longer-term potential is far broader, according to Coster – high-value health ingredients and even infant nutrition could be next on the roadmap.
“While our initial focus is cosmetics, there are health benefits that human lactoferrin can deliver across other areas, including food and supplements, opening up a range of opportunities to support health and wellbeing.”
Fermenting the future
That said, scaling up precision fermentation for mass-market use still presents challenges, from high production costs to navigating regulatory frameworks and consumer education.
Despite these hurdles, investor enthusiasm for the tech continues to grow, with Eclipse joining a wave of homegrown startups seeking to reshape the future of food and health through fermentation.
In 2022, All G Foods raised $25 million to expand its precision fermentation platform for bovine lactoferrin and a suite of human milk proteins – including lactoferrin – targeting the infant formula market.
The company has since filed a patent for the latter and, earlier this year, became the first globally to gain regulatory approval for precision-fermented bovine lactoferrin in both the US and China.
Similarly, Eden Brew – another CSIRO-affiliated venture – raised $25 million in 2023 to develop “cow-free” dairy products like ice cream using precision fermentation. Developed in partnership with Norco, the products are expected to taste and function just like traditional dairy.
Protein plans
These efforts are part of CSIRO’s broader ‘future proteins’ initiative, which aims to generate $10 billion in new protein products and ingredients by 2027.
Eclipse Ingredients was incubated within CSIRO in collaboration with Coster – an entrepreneur and former dietitian – and now operates out of the Queensland University of Technology.
“We’re delivering trusted science, as well as helping to demonstrate new potential technology-led industries for Australia,” Research Lead, CSIRO’s Dr Crispin Howitt said.
“Australia is a leading producer in trusted, sustainable and high-quality ingredients and can build on this reputation to open new high-value market opportunities using advances in precision fermentation.”
Eclipse Ingredients is using precision fermentation to produce bioidentical milk proteins without relying on animal sources. Its platform uses engineered yeast strains to create complex proteins, with an initial focus on human lactoferrin – a powerful compound found in breast milk known for its anti-inflammatory, antimicrobial, immune-boosting, and iron-binding properties. While the startup is first targeting the cosmetics industry, future applications could include food, supplements, and infant nutrition. The goal is to offer scalable, ethical, and sustainable alternatives to traditional animal-derived ingredients, with the first commercial products expected to launch by 2027.
