Calgary-based faba protein producer Phytokana Ingredients Inc. has signed definitive long-term offtake agreements with a group of domestic and international customers representing approximately $450 million in cumulative contracted revenues. Combined with existing memorandums of understanding, total potential sales exceed $500 million.
The agreements, spanning three to ten years, are tied to the planned commercialisation of Phytokana’s dry fractionation facility in Strathmore, Alberta. The plant is designed to process 30,000 metric tonnes per year, producing faba protein concentrates and high-protein flours for food and beverage manufacturers across global markets.
Contracted demand before commercial operations begin
The scale of pre-commercial contracting is notable for a privately held ingredient startup. Securing binding customer commitments before a facility is fully operational reduces financing risk and provides visibility on revenue from the point of launch.
CEO Chris Theal said end-use applications under the agreements span plant-based meats, alternative dairy, fortified baked goods, and snack foods. “Our customers span the globe, and the diversity of their food and beverage applications reflects the versatility of our plant-based ingredients. Securing long-term offtake agreements at this stage is a strong validation of both product performance and our commercial strategy,” he explained.
Chairman Vincent Chahley pointed to the broader operating environment: “In a complex geopolitical and capital environment, we have built credibility through innovation, strong customer collaboration, and a focused vision for Better-for-You ingredients. The level of contracted demand we have secured significantly de-risks the path to commercialisation.”
Faba bean as an alternative protein source
Faba beans have attracted growing interest from ingredient companies as an alternative to pea and soy protein. The crop performs well in Canadian growing conditions, fixes atmospheric nitrogen, and offers a competitive amino acid profile.
Dry fractionation, the processing method Phytokana uses, separates protein mechanically without solvents, which can support cleaner label positioning and reduce processing costs compared to wet extraction methods.
Customer identities, pricing terms, and a facility opening timeline have not been disclosed.
