When scaling production capacity to meet the demand for plant-based meat, retrofitting stands out as a strategic choice. By adapting well-suited facilities, we can significantly reduce the need for costly investments and shorten lead times for swifter results.
Nevertheless, not every manufacturing plant is suitable for retrofitting. Building upon our previous blog post, which discussed the factors that must be considered when deciding between retrofitting a facility or developing a greenfield site, this week’s blog takes a more in-depth look at the former. In particular, we examine the specific standards and conditions that dictate a facility’s suitability for the purpose of retrofitting.
Retrofitting to build capacity
In terms of capital expenditure (CapEx), retrofitting, with its focus on repurposing existing facilities, exhibits clear financial advantages. The cost, typically ranging between $0.1 and $0.6 million per thousand metric tons (M/TMT) of capacity, demonstrates a significant contrast to the higher CapEx associated with the greenfield approach. Moreover, retrofitting often requires only weeks to months for facility adjustments, holding a significant time-to-market advantage over the lengthier 18 months to three years often needed for greenfield facilities.
The plant-based meat production process involves extrusion and post-processing steps, which can be organized either within a single facility or across separate facilities. Worldwide, there is considerable production capacity that is technically suitable for retrofitting for both of these steps. For extrusion, existing facilities in pet food, pasta, breakfast cereals, and dry snacks industries are well-suited for retrofitting to produce plant-based products, with approximately 44 million metric tons (MMT) of global capacity in 2021. An estimated 80% of this capacity is considered suitable for retrofitting. In post-processing, animal meat post-processing facilities that make products such as burgers, meatballs, and hot dogs can be retrofitted for plant-based meat production. The total global capacity was 65 MMT in 2021, with at least 90% being technically suitable for retrofitting.
Key factors for assessing retrofitting suitability
When retrofitting existing facilities for plant-based meat manufacturing, whether for extrusion or post-processing, it’s important to assess five key criteria:
1. Square footage
Since the focus is to scale up, the primary consideration is the available space. Based on our bottom-up research that gathered data on individual facilities, existing plant-based post-processing plants vary considerably in size: from 11,000 to 230,000 square feet (ft²), averaging around 50,000 ft².
Insights from industry experts suggest that economies of scale apply to both extrusion and post-processing facilities; larger facilities tend to have cost advantages compared to smaller ones.
While a standard production line necessitates a minimum of 5,000 ft², for optimal economies of scale, suitable facilities should ideally exceed 50,000 ft².
2. Facility and equipment
Ensuring compliance with regulations is essential. Therefore, the selected facility must meet food-grade or near food-grade standards and already have operational extruders. These criteria would apply to most facilities that manufacture pet food, pasta, breakfast cereals, and dry snacks.
- Extrusion
Ensuring compliance with regulations is essential. Therefore, the selected facility must meet food-grade or near food-grade standards and already have operational extruders. These criteria would apply to most facilities that manufacture pet food, pasta, breakfast cereals, and dry snacks.
- Post-processing
Facilities suitable for retrofitting into plant-based processing plants include meat processing facilities equipped with machinery capable of producing a range of products, including nuggets, schnitzels, burgers, mince, meatballs, strips, chunks, cold cuts, or sausages.
3. Output
Achieving commercial viability necessitates careful consideration of output capacities. Plant-based post-processing facilities currently have output capacities between 1 and 74 thousand metric tons (TMT) per year with an average of 13 TMT per year, according to our bottom-up research. Based on this research, our recommendation stands at a minimum of 3 TMT per year, with the ideal target exceeding 20 TMT per year for an effective commercial-scale plant.
4. Utilities and sustainability
The chosen facility should possess all the necessary utilities to effectively operate extrusion or post-processing activities. Opting for a plant that has already been designed to run sustainably not only ensures operational efficiency but also contributes to reducing the overall environmental footprint of the plant-based meat production process.
Ideally, the facility should align with sustainable practices, utilizing energy sources like solar panels or heat pumps. Moreover, the inclusion of an efficient wastewater treatment system is essential for environmental responsibility. To further minimize impact, high-quality insulation and cooling systems should be in place in refrigerated or freezer areas.
5. Product portfolio
Choosing a facility that has experience in producing similar styles of products, albeit animal-based, ensures a smoother transition and adaptation of equipment. The alignment of product portfolios minimizes costs and lead times, and also allows for the integration of familiar workflows, ensuring operational efficiency from the start.
For example, if your objective is to produce plant-based chicken nuggets, retrofitting a facility designed to manufacture conventional chicken nuggets can be advantageous. On the other hand, a facility specializing in burgers might require additional equipment for tasks like adding breaded coatings and pre-frying, leading to additional capital expenditure.
Anticipated adjustments
While aligning with existing product portfolios is advantageous, facilities will likely still require various changes and additions to equipment and infrastructure. Potential adjustments range from minor equipment modifications to a comprehensive review of food safety protocols to improve hygiene and meet human food-grade conditions, particularly for pet food and animal meat facilities. However, retrofitting an extrusion or post-processing facility for plant-based production is generally less complex than constructing a greenfield facility.
Final thoughts
Retrofitting offers a promising avenue for expanding plant-based meat production capacity. Nevertheless, the suitability of a facility depends on various factors, from available space and potential output to alignment with product portfolios and equipment adaptability. In addition, anticipating and planning for modifications is important to ensure that the retrofitting process is efficient and aligns with industry regulations and food safety standards.
Bright Green Partners recently partnered with Good Food Institute to address the challenge of expanding plant-based meat capacity. Our comprehensive study quantifies the current global manufacturing capacity and also provides practical solutions for governments and businesses to meet the rising demand effectively.
Furthermore, the study explores the suitability of facilities for retrofitting in further detail, offering valuable insights and scenarios that illustrate the pros and cons of this approach. For those keen to explore further, the complete study is accessible here.
If you are keen on discovering more about our support for organizations in the plant-based industry, covering areas like business strategy, conceptual design and engineering, and techno-economic assessment, feel free to get in touch with us.
