Converting Food Waste Into Protein: How Kynda's New Facility is Transform Germany's Sidestreams
- Gauri Khanna
- 18 hours ago
- 3 min read
Too long to read? Go for the highlights below.
Kynda's new 720-square-metre facility in Germany converts food industry waste into fungal protein using fermentation technology
The company's decentralised model could process up to 25,000 tonnes of mycelium annually across European food manufacturers
Over 90 million tonnes of nutrient-rich food processing sidestreams go unused in the EU each year
Kynda's newly inaugurated facility in Jelmstorf, Lower Saxony, represents a departure from the typical playbook for alternative protein start-ups. Rather than constructing vast centralised factories to sell products directly to consumers, the German biotechnology company has built a 720-square-metre research and production site designed to help existing food manufacturers convert their own waste into valuable protein.
A Different Approach to Scaling Fungal Protein
The facility combines 360 square metres of laboratory space for process optimisation with production areas housing 40,000 litres of fermentation capacity. This infrastructure supports the development of starter cultures: essentially the biological "recipes" that other companies can use to grow fungal mycelium at their own sites. According to Kynda, this approach could enable decentralised production of up to 25,000 tonnes of fungal mycelium annually across customer facilities throughout Europe.
The underlying premise is straightforward: the EU food industry generates more than 90 million tonnes of nutrient-rich sidestreams each year that remain unused. These materials (byproducts from plant protein processing, soy and oat beverage production, dairy operations, and sugar and starch manufacturing) contain sugars, proteins, and other nutrients that fungi can convert into edible biomass through fermentation.
Decentralisation as Strategy
Kynda's business model centres on technology transfer rather than vertical integration. The company develops modular fermentation systems designed to slot into existing food production infrastructure, allowing manufacturers to transform what would otherwise be waste into protein ingredients without building entirely new facilities.
This decentralised strategy addresses several challenges simultaneously. Food processors gain a revenue stream from materials they previously discarded or sold cheaply for animal feed. The fungal protein industry gains access to low-cost feedstocks without competing for agricultural land or crops. And the approach reduces transport emissions by processing sidestreams where they arise rather than shipping them to distant facilities.
Franziskus Schnabel, Kynda's COO and co-founder, describes the company's approach as deliberately open. The goal, he notes, is to help companies increase efficiency and create value within their existing facilities rather than targeting niche markets alone. This philosophy positions Kynda as infrastructure provider rather than ingredient supplier: a role that could prove more scalable if food manufacturers embrace on-site fermentation.
From Laboratory to Industry
The Jelmstorf facility employs 12 people and focuses on adapting fermentation processes to different types of sidestreams. Each food processing operation generates distinct byproduct compositions, requiring tailored approaches to optimise fungal growth and protein yield. The research capabilities at the new site enable Kynda to develop these customised solutions for potential partners.
The opening attracted representatives from German and European food manufacturers exploring on-site applications. Miriam Staudte, Lower Saxony's Minister for Food, Agriculture and Consumer Protection, emphasised fermentation's potential to sustainably meet nutritional needs whilst bolstering regional innovation which is a recognition that alternative protein production need not centre on a handful of massive facilities but could distribute across existing industrial infrastructure.
Whether this decentralised model gains traction remains to be seen. It requires food manufacturers to invest in fermentation capabilities and commit to learning new processes. Yet with millions of tonnes of sidestreams available and growing pressure to improve resource efficiency, Kynda's approach offers a pathway to scale fungal protein production by working with, rather than around, the existing food system.
