Oberland Agriscience, the Halifax company that turns insect larvae into agricultural feed, has received a $1 million investment from HCi3 as part of a funding round with a target of $10 million.

HCi3, which is the investment subsidiary of Efficiency Nova Scotia, issued a press release this week saying the $1 million cheque represented the largest single investment it had ever made in a company.

The statement said the investment would support the biotech company’s move toward commercial-scale production.

Founded in 2017 by Dr. Greg Wanger, Oberland produces animal nutrition products and insect-derived fertilizer using black soldier fly larvae. Its products include protein ingredients for animal feed and frass, a fertilizer derived from insect production. Its animal nutrition customers include backyard poultry owners, aquaculture operators, livestock producers, and pet feed companies across North America.

The company has built and equipped a commercial-scale facility in Halifax and is ramping up production, with plans to reach full capacity this year. Frass produced at the facility is being introduced to garden centres under the 2nd Nature Plant Food brand.

Oberland’s production process uses organic waste as feedstock for the larvae. By controlling feed inputs and environmental conditions, the company manages nutrient content, growth rates, and fertilizer characteristics. The facility incorporates energy-efficiency measures, including heat capture and reuse from the larvae growth process, and diverts organic material that would otherwise go to landfill.

At full production, Oberland estimates its first plant will reduce greenhouse gas emissions by about 170,000 tonnes of CO2 equivalent per year compared with conventional protein and fertilizer products.

In June, the company announced the appointment of Jon Getzinger as chief executive officer. Getzinger has more than three decades of experience in food, nutrition, and bio-based industries, largely in the U.S. Wanger has transitioned to chief technology officer and is focused on scaling production and product development.

By providing grants and equity investment, HCi3 aims to reduce CO2 emissions within Halifax and by Halifax companies. In 2023, the Province of Nova Scotia committed $7.5 million to the fund, whose full name is the Halifax Climate Investment, Innovation and Impact Fund

The provincial funding built on $18 million from the Government of Canada, provided through the Federation of Canadian Municipalities’ Green Municipal Fund, which helped establish HCi3 as part of the Low Carbon Cities Canada network.

HCi3 began operations in 2021 and has completed two rounds of Accelerating to Zero grants, with 14 recipients named in the most recent round.