DAST — Department of Agriculture SBIR Phase I: This Small Business Innovation Research Phase I project will develop a microbial process t

Description

This Small Business Innovation Research Phase I project will develop a microbial process to economically upgrade distillers & #39; dried grains with solubles (DDGS) into an omega-3 enhanced DDGS (Omega-3 DDGS) to replace essential fatty acids found in fish oil commonly used in aquaculture diets. This Omega-3 DDGS will also provide highly digestible microbial and plant proteins. The aquaculture industry has grown at a 9% rate for the past decade due to increased demand for fish protein and reduced capture of wild fish. Both fish oil and fish meal are key ingredients in aquaculture feeds, but unfortunately their production from wild-caught fishes cannot meet worldwide feedstuff demand. The limited availability and high prices of fish oil and meal have increased aquaculture feed costs, reduced profitability, and thus limited expansion of the U.S. aquaculture industry. There is a significant market opportunity for more sustainable replacements for fish oil and meal. Through prior NSF SBIR funding, Prairie AquaTech has developed a micro-fungal process to convert soybean meal (SBM) into a high protein product (marketed as PisciZyme) that is successfully replacing fish meal in pilot and commercial scale trials. A USDA SBIR grant to convert DDGS into a fish meal replacement is underway.To replace fish oil Prairie AquaTech proposes to convert 1) sugars and glycerol in distillers & #39; grains to docosahexaenoic acid (DHA) and protein using Schizochytrium limacinum, and 2) sugars, organic acids, and glycerol in condensed corn solubles to eicosapentaenoic acid (EPA) and protein using Pythium irregulare. Phase I objectives will include generating sufficient quantities of Omega-3 DDGS for digestibility and feeding trials with yellow perch (Perca flavescens) to assess technical and economic feasibility. The first generation Omega-3 DDGS is anticipated to have & gt;1.5% of both DHA and EPA, and & gt;45% protein, while providing desirable fish growth rates and conversion efficiencies at & gt;30% fish oil replacement levels. Phase II will further optimize the Omega-3 DDGS production process, targeting & gt;3% of both DHA and EPA, and & gt;50% protein. Pending Phase I results we will also test the Omega-3 DDGS product in other commercially important food fishes, validate process costs and energy requirements, and complete initial steps for scale-up and commercialization (including AAFCO approvals).The Prairie AquaTech value proposition is that our microbial technologies will generate low cost, highly digestible aquaculture feeds from sustainable plant-based coproducts. Preliminary work has documented that DDGS fractions can be efficiently converted into DHA and EPA. This Phase I proposal will demonstrate commercial feasibility. Omega-3 DDGS production costs are estimated at $400-450/ton, compared to fish oil at $1,760-2,440/ton. Existing technologies cannot offer a DHA, EPA, and protein enhanced feedstuff at this price. Fish oil alternatives, such as flax oil (lacks DHA and EPA) and photosynthetic algal oil (high production and recovery costs), have proven impractical. Our primary target audience will be aquaculture producers (eg. Bell Aquaculture and Clear Springs), feed manufacturers (eg. Purina, Zeigler, Skretting), and corn processors. Each will benefit from the conversion of low-value corn ethanol coproducts into high value aquaculture feedstuffs. Prairie AquaTech & #39;s economical and sustainable source of DHA, EPA, and protein will encourage growth of domestic aquaculture operations to help meet USDA & #39;s strategic goals related to agricultural development and food security.