St. Louis Inno is publishing profiles of its 2022 Startups to Watch this week. See the entire list of honorees below.
COVERCRESS
Headquarters: Creve Coeur
Founders: Dennis Plummer, Mike Roth, Vijay Chauhan, Jerry Steiner
What it does: CoverCress has developed a new rotational, oilseed cash crop to provide winter and early spring soil cover between corn harvest and soybean planting. The crop, based on the native plant pennycress, can generate revenue as animal feed and high-protein meal. The plant’s low carbon intensity oil is also expected to be used to produce fuels.
The latest: In 2021, CoverCress had a soft launch of its crop, planting it on several hundred acres as it prepares for a full commercial launch later this year. The grain harvested from the initial planting will be used as an ingredient in chicken feed. In preparation of its commercial launch, CoverCress in March 2021 closed an $8 million funding round that included participation from two major agriculture players: Bunge Ventures Ltd., the venture arm of St. Louis-based agribusiness and food company Bunge Ltd. (NYSE: BG), and REG Ventures LLC, a subsidiary of biodiesel and renewable diesel producer Renewable Energy Group Inc.
Why you should watch it: CoverCress is at a key inflection point, transitioning from an R&D startup to a commercial operation. It believes its making that shift at a key moment in time, given the increased momentum around using renewable feedstocks to create low-carbon diesel and produce fuels. Companies like CoverCress are expected to help fill demand for that market, with a 2021 Reuters report saying there’s expected to be a “13-billion pound feedstock deficit” for the renewable fuels production by 2024.
What’s next: With its commercial launch, CoverCress expects to grow its crop on 20,000 acres later this year. By 2025, the startup anticipates its crop will be grown on enough acres so that it can be used to produce oil for diesel.
More about CoverCress
Founded: 2013
Capital raised: $22 million
CEO: Mike DeCamp
Employees: 22
Investors: Bunge Ventures, Leaps by Bayer, REG Ventures, Fulcrum Global Capital, Prelude Ventures, St. Louis Arch Angels, Hermann Cos., BioGenerator, Prolog Ventures, Cultivation Capital, Missouri Technology Corp., Yield Lab and St. Louis Port Authority
