The future of food is being shaped by unexpected players, and among them is the US Department of Energy (DOE). Traditionally focused on infrastructure, fuel sources, and energy grids, the DOE’s investment in alternative protein technology highlights a critical financial and environmental shift: food innovation is now a national energy priority.
The recent episode of The Plantbased Business Hour hosted by VegTech Invest’s CEO, Elysabeth Alfano, featured Mike Messersmith, CEO of Tender Food, a company pioneering an innovative approach to plant-based meat production. Their breakthrough technology—spinning fava bean protein, rice protein, and oat fiber into fibrous, meat-like textures—represents a new frontier in food technology. But what makes this so relevant to the Department of Energy?
Food innovation as an energy solution
The DOE’s involvement in food production, investing $5 million in Tender Food as one of three food innovation companies/scaling facilities, stems from the massive energy inefficiencies in traditional animal agriculture. The livestock industry consumes enormous resources—water, land, and, critically, energy. Feeding, raising, and processing animals for protein is significantly more energy-intensive than producing plant-based or fermentation-derived alternatives.
Companies like Tender Food offer solutions with a much smaller environmental footprint. Their technology, which mimics industrial cotton candy machines, produces protein in a compact, efficient system. Unlike traditional food processing plants that require massive infrastructure, Tender Food’s production model is low-energy, high-efficiency, and scalable—qualities that align with the DOE’s broader mission of reducing energy consumption and emissions.
The financial case for alternative protein infrastructure
From an investment standpoint, the DOE’s interest in food technology signals a significant shift in capital allocation toward sustainable, energy-efficient food systems. This presents compelling financial opportunities for investors:
- Government-backed growth
With federal backing, companies developing next-generation protein solutions gain access to grants, incentives, and funding, de-risking early-stage investment. - Infrastructure investment
Tender Food’s small-footprint, scalable model suggests a future where alternative protein manufacturing hubs could be placed in urban centers, reducing transportation costs and supply chain volatility. - Market demand & profitability
As consumers demand more sustainable, healthier protein options, scalable food technologies will capture market share from traditional meat industries. Companies developing efficient, cost-effective production methods will be at the forefront of this transition.
A call for investors to pay attention
The DOE’s investment in food technology is a strong signal to the financial world. Just as clean energy and electric vehicles have become dominant investment themes, sustainable food production is emerging as a key sector within climate-tech and impact investing.
VegTech™ Invest invests in public companies focused on food system transformation through its publicly traded Food Innovation ETF. While Tender Food isn’t a public company, we recognize that companies like Tender Food are redefining food infrastructure—not just from an innovation standpoint, but also as a financial opportunity. With increasing institutional and governmental support, alternative proteins are no longer a niche play—they’re a macroeconomic shift.
For investors looking at the next decade, the intersection of food, energy, and technology is where capital should be moving now for potential large-scale gains.
Listen to the full audio podcast here. Watch the full video interview here.
Elysabeth Alfano is the CEO of VegTech™ Invest, Advisor to a food innovation ETF. She is a consultant to multi-national companies focused on sustainability and an advisor to C-Suite interested in understanding the growth of whitespaces in the food industry. She is also the host of the podcast, The Plantbased Business Hour on iTunes and vegconomist.
