Adisseo declines to renew Calysseo shareholder loan as FeedKind plant remains suspended

Adisseo has announced that it will not renew a shareholder loan to Calysseo, its 50/50 single-cell protein joint venture with US technology company Calysta, citing ongoing technical and commercial challenges at the venture's production facility in Chongqing, China.

• Adisseo has decided not to renew a US$16.25 million shareholder loan to Calysseo following its maturity on June 30.
• The Chongqing FeedKind production facility remains suspended while technical upgrades are undertaken and additional financing is sought.
• Adisseo and Calysta said they continue to work together to identify solutions for the joint venture.

In an announcement to the Shanghai Stock Exchange, the company said the facility remains suspended while technical upgrades are completed to enable it to achieve its intended design capacity. It added that Calysseo requires substantial and sustained financial support to complete the work but is currently facing a severe shortage of working capital.

Adisseo said the situation reflects "the inherent complexity and uncertainty of biotechnology R&D", together with "greater-than-anticipated difficulties in production scale-up", unsuccessful attempts to secure external financing, and what it described as significant challenges within the feed substitute protein market.

Calysseo was established by Adisseo and Calysta to manufacture FeedKind, Calysta's methane fermentation-derived single-cell protein for aquaculture, pet food, and other animal nutrition applications.

The joint venture achieved several significant milestones during 2024. In February, China's Ministry of Agriculture and Rural Affairs (MARA) approved FeedKind for use in aquaculture feeds, enabling commercial sales in one of the world's largest aquaculture markets. Three months later, German manufacturer Dr Clauder's launched what was described as the world's first dog treats containing FeedKind Pet protein. In August, Calysta announced the first major international shipments of FeedKind Pet from the Chongqing facility to Europe, marking the start of commercial exports.

The latest announcement indicates that the project has since shifted its focus from initial commercialization to resolving the technical and financial challenges associated with sustained industrial production.

Adisseo had previously agreed to provide financial assistance to Calysseo through a shareholder loan of up to US$16.25 million, subject to proportionate support from Calysta. According to the company, the loan matured on June 30, 2026, with an outstanding principal balance of approximately US$11.9 million.

The company said the conditions required to continue providing financial assistance had not been met and that, "acting on the principle of prudence," it had decided not to renew the loan. It also warned that recovery of the outstanding balance remains subject to risk.

The announcement follows disclosures in Adisseo's 2025 Annual Report, which stated that the Chongqing facility had been shut down to allow technical upgrades aimed at achieving its intended operating capacity. The report also noted that Adisseo and Calysta were exploring potential solutions while seeking additional financing and engaging with local stakeholders.

Financial information released by Adisseo shows Calysseo generated revenue of approximately US$710,000 during 2025 while recording a net loss of approximately US$15.5 million. At year-end, the joint venture reported total assets of approximately US$78.7 million and net assets of approximately US$14.8 million.

Adisseo has recognized a bad debt provision relating to the shareholder loan but said the potential financial impact had already been reflected in its 2025 financial statements and represented only around 0.41% of the company's net assets attributable to shareholders.

Despite its decision not to renew the loan, Adisseo said it continues to work with Calysta to identify solutions that could address Calysseo's going-concern position.

The announcement highlights the challenges that can accompany the scale-up of first-of-a-kind industrial biotechnology facilities, even after regulatory approvals and initial commercial milestones have been achieved. FeedKind has secured regulatory approvals, reached commercial markets through pet food launches, and begun international shipments, but Adisseo's latest disclosures indicate that further technical optimisation and additional financing are required before the Chongqing facility can resume production at its intended operating capacity.

Neither Adisseo nor Calysta indicated that development of the FeedKind technology itself had ceased. Both companies said they continue to seek solutions for the joint venture.