Josh Silverman, the founder of Windfall Bio, faced significant challenges when he first introduced his methane-eating microbe startup. Eight years ago, the market was not receptive to the idea of methane reduction. Companies were more focused on lowering their carbon emissions. However, the tide has started to turn in recent years.
Windfall Bio, based in Menlo Park, has successfully raised a $28 million Series A round to expand its commercialization efforts. The funding round was led by Prelude Ventures, with participation from Amazon’s Climate Pledge Fund, Incite Ventures, Positive Ventures, and existing investors like Mayfield.
Windfall Bio’s primary focus is on industries that produce high levels of methane, such as agriculture, oil and gas, and landfills. The startup provides methane-eating microbes that absorb methane emissions and convert them into fertilizer. Companies can either use the fertilizer themselves if they are in the agriculture sector or sell it as a revenue stream.
Silverman believes there is a significant opportunity to leverage this natural ecosystem as a low-cost solution compared to other carbon capture technologies that require substantial capital investments. Since Windfall Bio raised its seed round last year and emerged from stealth in March 2023, demand for its solution has been high.
Silverman emphasizes that carbon capture has been the primary focus for a long time because carbon remains in the atmosphere indefinitely, unlike methane, which has a lifespan of 10 to 12 years. In the past, people sought long-term solutions when thinking about climate change. However, with the increasing clarity and severity of climate change impacts, there is now a growing recognition of the need for both short-term and long-term solutions.
Despite this need, Silverman points out that every single G20 country has missed their emission-reduction targets set by the Paris Agreement. He stresses the importance of managing short-term climate factors alongside long-term goals to ensure a sustainable future.
The lack of attention given to methane is surprising considering that it can offer better return on investment (ROI) for companies compared to carbon reduction efforts. While carbon is treated as waste and companies capture it to dispose of it, methane can be repurposed as energy more easily. Working with a company like Windfall Bio, focusing on methane reduction can actually generate profits for companies.
This deal with Windfall Bio is significant because it falls within a growing category of startups dedicated to addressing climate issues in the present rather than just the future. While long-term solutions are crucial, immediate action is needed to tackle the impact of climate change today.
The market for methane-reduction technology is still in its early stages, but progress is being made. Silverman acknowledges that there are not many competitors in this field, making Windfall Bio one of the best options available. He is pleased to see funding going to a climate company that goes beyond carbon credit startups.
Silverman reflects on the challenging journey he faced, with years of zero traction before finally gaining momentum. With few players in the market, Windfall Bio stands out as the leader. In his words, “in my land of the blind, the one-eyed man is king.”
This narrative highlights the increasing interest in methane reduction technology and its potential benefits for both companies and the environment. It emphasizes the need for immediate action to address climate change and the importance of considering short-term and long-term solutions. Windfall Bio’s innovative approach to methane reduction presents a profitable opportunity for companies while also reducing their carbon footprint.
