Novozymes Merges With Chr. Hansen To Boost Biotech & Decarbonization Industry

Novozymes Merges With Chr. Hansen To Boost Biotech & Decarbonization Industry - Carbon Herald
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The biggest-ever merger between Danish companies was agreed upon on Monday, Dec 12. Novozymes (CPH: NZYM-B) – a world leader in biosolutions and Chr. Hansen (CPH: CHR) – a bioscience company based in Denmark, announced their merger that will see the dissolution of Chr. Hansen and is expected to be completed in Q4 2023.

The two companies are complementary and aim to provide sustainable solutions to decarbonize the food industry and beyond. Both companies produce enzymes as a core of their businesses, however, Chr. Hansen focuses more on enzymes and microbials for the food sector, while Novozymes’ largest business areas include enzymes for household products, food, beverages and biofuels.

Relevant: Saipem And Novozymes Team Up To Capture CO2 With Enzymes

According to Novo Holdings – the largest shareholder in both Novozymes and Chr. Hansen, the two companies are a “perfect match” which is a leading factor of this merger. Novozymes CEO Ester Baiget also explains that the two companies’ combined scale, know-how, commercial strengths, and innovation excellence will drive higher value for shareholders, customers, and society.

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Upon completion of the merger, Novozymes free float shareholders will own in aggregate 44% of the total share capital of the combined group, Chr. Hansen free float shareholders will own 34% and Novo Holdings – 22%. The annual revenue of the merged company should come to 3.5 billion euros ($3.68 billion).

“Beyond 2025, ambition is to continue to deliver accelerated sustainable growth from the underlying business coupled with new, and de-risked, innovation and growth opportunities,” added the companies. 

Novozymes wants to utilize the power of bioscience to decarbonize the world. The company’s biotech is accelerating carbon capture technologies’ impact. According to Novozymes, it uses carbonic anhydrase that replaces chemicals in carbon capture and storage, captures millions of carbon dioxide molecules every second, and turns them into carbonate.

This enzymatic process can capture more than 90% of CO2 emissions from flue gas and is more affordable, sustainable and convenient for many factories than other conventional carbon capture processes. 

The company also produces protein produced by fermentation that replaces animal-based protein which could lead to CO2 equivalent savings of up to 90% compared to meat. It transforms bio-feedstocks like crops, waste and other organic material into fuel, power, heat, and feed – a biotech process that according to Novozymes plays a key role in the pursuit of a climate-neutral society.

Relevant: New Type Of Protein Made By Fermentation Saves 90% Of Meat Protein Emissions

It uses bacteria to provide solutions for the agriculture sector. JumpStart® inoculant is an example of a bacteria applied to seeds that makes crops more resistant to climate change and unfavorable conditions. Climate change increases stressors for plants like weed pressure, drier conditions so Novozyme’s biotech helps them withstand these. It also accelerates plants root growth which helps them store more carbon in the soil. 

As the world needs technologies that can mitigate climate change and help us live in a more balanced and sustainable world, innovations in the biotech sector are one of the areas of huge interest for investors betting on the net zero future.

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