The broader impact/commercial potential of this Small Business Innovative Research (SBIR) project is to develop an alternative to fishmeal for the fast growing aquaculture industry. Fishmeal is the main component of aquafeed, and there is an urgent need to find alternatives. Aquaculture, the fastest growing animal protein sector, is poised to double by 2030, and represents one of the most effective ways to feed the world's growing population. Two out of every three fish consumed will be raised on a farm. Captured fisheries and aquaculture supplied approximately 154 M tons of fish in 2011 with a total value of $217B. Farm raised fish outpaced beef production in 2013 for the first time ever. The overexploitation of >75% of our natural fisheries has created shrinking supplies of the critical feed ingredient, fishmeal. The continued growth of the industry is vitally tied to generating innovative protein alternatives. In addition, carotenoids like astaxanthin, lycopene, and beta-carotene, provide pigment to color important farm-raised species, but also have an essential nutritional role for immunity as a powerful anti-oxidant. While feed represents the single largest operating cost to the farmer, carotenoids can be the most expensive ingredient within aquafeeds.<br/><br/>This SBIR Phase I project proposes to develop engineered, methanol-utilizing bacteria that convert natural gas into a novel carotenoid-laden single cell protein capable of dramatically lowering the cost of carotinoids, and serving as a suitable replacement for fishmeal. The goal is to commercialize an economically viable source of carotenoids, amino acids, and alternative protein. The project uses advanced genetic tools that enable rapid iteration for strain development to meet the goals of increasing efficiency by 50%. The economical co-production of protein and carotenoids leads to a healthier, advantaged feed, while combining high-value functional ingredients with high-efficiency bioconversion.