Techno-Economic Analysis (TEA) for Biotech & Food-Tech: Beyond Basic Feasibility
- Gustavo Valente
- Sep 29
- 4 min read
Updated: Sep 30
When scaling up a biotech or food-tech process, the big question isn’t just “is it feasible?”. It’s “will this process make sense economically at commercial scale?”
Traditional project feasibility studies cover technical, legal, and operational aspects. But in capital-intensive industries like precision fermentation, cultivated meat, and bio-based materials, feasibility alone is not enough. What really matters is whether your process will work technically and economically once scaled. That’s where Techno-Economic Analysis (TEA) comes in.
What Is Project Feasibility Analysis in Biotech?
Project feasibility analysis is a structured way to evaluate whether a new process is viable. In biotech and food-tech, it often covers:
Technical feasibility – Can fermentation, bioreactor, or downstream steps be executed with existing technology?
Economic feasibility – Will the project deliver profitable unit economics (COGS, CAPEX, OPEX)?
Operational feasibility – Are the facilities, utilities, and talent available to support scale-up?
Regulatory feasibility – Does the process meet food safety, GMP, or environmental compliance?
Example: A startup developing a fungui protein may confirm that production works in a 5 L fermenter, and that regulators classify it as a novel food. But without economic modelling, they won’t know if the cost per kg at 50,000 L is competitive with soy protein isolate.
Why Feasibility Alone Isn’t Enough
In biotech scale-up, the gap between lab feasibility and commercial viability is huge. Common challenges include:
Yield risk – A 5% drop in productivity can double your COGS.
Feedstock volatility – Sugar or media ingredient costs fluctuate, impacting profitability.
Utility costs – Steam, cooling, and water often dominate OPEX at scale.
Capital intensity – Even “viable” processes may require hundreds of millions in CAPEX before breaking even.
This is why leading startups and investors rely on Techno-Economic Analysis.
What TEA Adds to the Picture
Techno-Economic Analysis goes further. It integrates process engineering data with financial modelling to map not just whether a project is viable, but how it behaves under real-world conditions and future scenarios.
Key TEA tools include:
Cost of Goods (COGS) modelling – Breaking down CAPEX and OPEX drivers from feedstock to DSP.
NPV & IRR – Translating cash flows into metrics investors trust.
Sensitivity analysis – Showing which variables (yield, titer, productivity, energy prices) actually move the needle.
Scaling factors & scenarios – Comparing pilot, demo, and full-scale economics.
Life Cycle Costing (LCC) – Capturing true ownership costs, from utilities to waste treatment.
For example, an alt-protein precision fermentation startup might assume that media cost is the biggest driver of production cost. A TEA could reveal that bioreactor utilization (downtime, cleaning, batch failure) matters more than media price, completely reshaping R&D priorities.
Key Techno-Economic Tools for Biotech & Food-Tech
TEA combines process engineering models with economic analysis to test how robust a process really is. Some core tools include:
Cost of Goods (COGS) Analysis – Breaks down CAPEX/OPEX across fermentation and downstream processing.
Net Present Value (NPV) & Internal Rate of Return (IRR) – Show long-term profitability in terms that investors understand.
Sensitivity Analysis – Tests how economics shift if yields, feedstock prices, or energy costs change.
Life Cycle Costing (LCC) – Captures true long-term costs (maintenance, utilities, waste treatment).
Process Simulation Models – Explore “what if” scenarios before committing to scale-up.
What Is Techno-Economic Analysis (TEA)?
A Techno-Economic Analysis goes beyond yes/no feasibility. It measures the economic reality of scaling up a technology by combining:
Technical performance – Yields, titers, energy balances, scalability.
Economic modeling – CAPEX, OPEX, cost per kg, and investor metrics.
Market context – Demand, pricing, competitive benchmarks.
Risk assessment – Which variables (media, utilities, productivity) actually drive success or failure.
Example: A cultivated meat company may think media is its biggest cost. A TEA could show that bioreactor downtime and cleaning cycles are actually more damaging to COGS, changing their entire R&D focus.
Steps to Conduct a Biotech TEA
Define scope & scenarios – Compare pilot vs demo vs commercial scale, or CMO vs in-house.
Gather technical & cost data – Yields, productivity, equipment sizing, vendor quotes.
Select analysis tools – NPV, IRR, sensitivity models, COGS breakdown.
Run process & cost model – Build mass/energy balances and calculate CAPEX/OPEX.
Perform risk & sensitivity analysis – See how robust the economics are to key assumptions.
Prepare a TEA report – Summarize results, risks, and investment logic.
Support decision-making – Use TEA insights for fundraising, R&D prioritization, or partner strategy.
Why TEA Matters for Startups and Investors
Founders: Avoid wasting months optimizing the wrong parameters.
Investors: Get clarity on whether unit economics hold up at commercial scale.
Corporates: Decide whether to build, license, or acquire with confidence.
Integrating TEA into feasibility analysis provides:
Data-driven decision-making
Better resource allocation
Risk mitigation
Stronger investor due diligence
Alignment between R&D and business goals
Conclusion: Moving Beyond Feasibility
In biotech and food-tech, basic feasibility studies only scratch the surface. To truly de-risk scale-up and attract investment, you need Techno-Economic Analysis (TEA).
Before committing millions to pilot plants, demo facilities, or fundraising rounds, ask not just “is it feasible?” but “what do the economics look like at scale?”
At Sustech Innovation, we specialise in TEA for biotech, food-tech, and sustainable materials. Our models combine engineering rigour with investor-ready insights to help startups and investors make better decisions.
👉 Start with our free [TEA Readiness Checklist] or book a consultation today.
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