Entrepreneurship

Methanol poisoning is a widespread but underreported health risk, especially in regions where illicit alcohol is common. Fatality rates can reach up to 40%, yet detection remains inaccessible to most travellers. MethaNO addresses this gap (a total addressable market size of ~$690m AUD) by offering a portable, affordable biosensor for rapid methanol testing. Our surveys confirm strong consumer interest, particularly among young adults. Beyond travel, craft distillers also face challenges in methanol monitoring due to limited access to lab equipment. Many rely on informal methods that lack precision and safety. MethaNO provides a practical solution for both groups, bridging the divide between unreliable detection and industrial standards through our engineered biosensor technology.

MethaNO was founded with a clear mission: to provide travellers with a reliable, portable methanol detection solution in regions where methanol poisoning remains a serious public health threat. Travellers continue to be our primary customer segment.

Following consultations with academic and industry advisors, we explored additional markets and identified three potential customer groups:

• Craft distillers in Australia and internationally
• Bars and hostels operating in high-risk regions
• Customs officers inspecting imported counterfeit alcohol

After conducting market research and feasibility analysis, we narrowed our focus to travellers and craft distillers. The other segments—bars/hostels and customs officers—were excluded from our market size analysis due to limited data availability and jurisdictional relevance outside Australia.

Travellers

According to IBISWorld, recreational international travellers from New South Wales (NSW) are predominantly aged 18–40, with holiday travel accounting for 60% of all short-term international trips in 2024–2025. NSW leads the country in overseas travel, representing 32.3% of all short-term departures, with 3.96 million residents travelling abroad annually. Popular destinations such as Indonesia and Thailand have consistently ranked in the top six since 2018—both countries known for methanol poisoning risks.

To better understand this segment, we conducted surveys during a University Open Day (see Human Practices Survey). Over 80% of respondents were aged 18–45, aligning with our target demographic. The survey revealed:

• High awareness of methanol poisoning
• Strong acceptance of biotechnology and GMO-based products
• Willingness to purchase a methanol detection kit

Based on feedback, we estimate a viable price point of $20 AUD for a kit containing 10 disposable tests.

Craft Distillers

Craft distilleries are defined as licensed producers manufacturing fewer than 750,000 gallons annually, operating independently of large suppliers, and marketing themselves as ‘craft’ [1]. Despite niche positioning and scale limitations, the sector has grown rapidly. In Australia, the number of craft distilleries surged from 28 in 2014 to over 700 in 2024, with a market valuation of USD $0.6 billion [2].

Globally, craft spirits are segmented as follows [3]:

• North America: 40%
• Europe: 30%
• Asia-Pacific: 20% (including Australia)

This growth signals a promising opportunity for MethaNO, especially since small-scale distillers typically lack access to on-site gas chromatography (GC). To validate this, we interviewed Ester Spirits, a Sydney-based craft distillery (see Human Practices: Ester Spirits). They currently outsource methanol testing to external GC labs—a process that, while low-cost, involves administrative burdens like sample bottling and paperwork.

Ester Spirits expressed strong interest in a portable, rapid, and easy-to-use methanol test. They highlighted its utility during distillation to determine optimal cut points and suggested a fair price of $20 AUD for a pack of 50 litmus-style tests.

Bar and Hostels

Our market research, supported by insights from our conversation with Mad Monkey Hostel (see Human Practices page) , revealed that the strongest demand for MethaNO among bars and hostels lies outside Australia—particularly in developing countries where alcohol adulteration is more common. As we want to focus our market reach on Australian customers initially, we decided to exclude bars and hostels as our potential customers.

Customs Officers

An interview with Eric Wilkes from the Australian Wine Research Institute (ARWI) highlighted the potential to sell our biosensor to government, namely customs officers (link to Human Practise AWRI section).

TAM, SAM & SOM: Essential Domestic Market Size Parameters for MethaNO

By applying the TAM, SAM, and SOM frameworks, MethaNO can set obtainable market share goals for the methanol detection solution. The total market opportunity can be assessed across domestic markets, focusing on serviceable markets like recreational travellers and small—to medium-sized craft distilleries to maintain operational presence through segment-differentiated marketing campaigns.

TAM (Total Addressable Market) – Worldwide

TAM represents the total revenue opportunity available if MethaNO captures 100% of the market share. It further represents the maximum potential market size and is typically measured in dollars annually.

SAM (Serviceable Addressable Market) – Australia

SAM is the portion of the total market that MethaNO can realistically seize, given its business model and constraints. SAM provides a practical measure of achievable market share for MethaNO’s current business model.

SOM (Serviceable Obtainable Market) – NSW

SOM quantifies the market share of the actual amount of the market captured. SOM can be interpreted as the most conservative market opportunity metric, aligned with current revenue forecasts and business initiatives for MethaNO.

Note: Projected production volume for 1st year is 160,000 kits, scaling up to the 370,000 kits in 2nd year to reach the volume estimated per SOM analysis.

The Problem

Methanol poisoning remains a significant global health concern, yet its true prevalence is difficult to quantify due to underreporting, misdiagnosis, and the lack of centralised data systems. The Methanol Poisoning Initiative (MPi), established by the University of Oslo in collaboration with Médecins Sans Frontières, monitors methanol poisoning outbreaks (MPOs) worldwide [4]. An MPO is defined as a sudden increase in methanol poisoning cases beyond the expected baseline in a specific region or country [5].

According to MPi, thousands of individuals are affected by methanol poisoning annually, with fatality rates ranging from 20% to 40% [6]. However, these figures are believed to be underestimated due to limited surveillance. Data indicate that Asian countries, particularly Indonesia and India, experience the highest prevalence of MPOs [3]. Methanol’s lower cost than ethanol, combined with its visual and olfactory similarity, makes it a common adulterant in illicit alcohol production [4]. This issue is especially pronounced in developing nations or regions with alcohol prohibition, where methanol is used to cheaply supplement or replace ethanol in bootleg spirits [4].

The Opportunity

MethaNO was developed in response to the absence of an accessible methanol detection method for everyday travellers visiting high-risk regions. Backpackers and holidaymakers need a fast, affordable, and user-friendly tool to verify the safety of their drinks. Our market research revealed no existing product that meets this demand (see Competitor Analysis section). Survey data collected during our University Open Day outreach (see Human Practices page) confirmed this gap: over 80% of respondents aged 18–45 expressed awareness of methanol poisoning, acceptance of biotechnology, and a willingness to purchase a detection kit. Portability and ease of use were consistently cited as key product attributes.

While methanol poisoning is not a major concern in Australia’s consumer alcohol market, our research identified a secondary unmet need among craft distillers. These small-scale producers—defined as licensed facilities producing fewer than 750,000 gallons annually, operating independently of large suppliers, and self-identifying as “craft” [1]—often lack on-site access to gas chromatography (GC), the industry standard for methanol testing.

Despite GC’s affordability, the process involves external lab submission, sample bottling, and administrative overhead, and is not legally mandated. Many distillers rely on informal methods colloquially referred to as the “pub test”, which are non-specific, unreliable, and potentially hazardous.

(see Human Practices: Ester Spirits), revealed a strong interest in a rapid, reliable, and regulation-aligned methanol test. MethaNO offers a practical intermediary between rudimentary detection and industrial standards, enabling distillers to monitor methanol levels throughout the distillation process and optimise cut points with confidence.

Technology

Our approach involves engineering a methanol-detection system derived from methylotrophic microorganisms into the chassis organism Escherichia coli. We developed two biosensor designs to explore this concept.

The first is a whole-cell biosensor based on a two-component regulatory system comprising a histidine kinase (HK) and a response regulator (RR). E. coli naturally uses the CusRS system to regulate copper ion levels (Fu et al., 2024), where the HK is encoded by CusS and the RR by CusR. We modified this system by replacing CusS with the methanol-binding HK domain MxaY from Paracoccus denitrificans, which detects methanol at concentrations as low as 0.01% [7]. To generate a visible output, we replaced the downstream gene expression regulated by CusR with a promoter driving the expression of the blue chromoprotein amilCP. This enables a colourimetric response upon methanol detection.

The second design is an in vitro enzyme-based biosensor. We selected the PQQ-dependent methanol dehydrogenase (MDH) from Methylorubrum extorquens due to its higher specificity for methanol compared to NAD⁺-dependent MDH variants [8][9]. The MDH is expressed in E. coli, purified, and used to catalyse the conversion of methanol to formaldehyde. Formaldehyde production is then detected using Supelco formaldehyde test strips or the BTB formaldehyde assay (see Engineering page).

Exit Strategy

MethaNO’s preferred exit strategy is acquisition by a larger company operating in the consumer safety and testing equipment sector. This pathway aligns with MethaNO’s mission to protect public health through innovative biosensing technologies, while enabling rapid scale-up and global deployment in regions where methanol poisoning remains a critical concern.

The decision to pursue acquisition reflects both pragmatic and strategic considerations. MethaNO’s current market position and resource constraints limit its ability to independently achieve industrial-scale manufacturing and international distribution. Partnering with an established global firm offers immediate access to:

• Brand credibility and regulatory infrastructure
• Manufacturing facilities in high-demand regions (e.g., Southeast Asia)
• Expanded distribution channels and customer base

While the decision to exit via acquisition was not taken lightly, it reflects MethaNO’s commitment to maximizing public health impact and ensuring the biosensor reaches the populations most at risk. The rising incidence of methanol poisoning in countries outside Australia underscores the urgency of scaling access, particularly for international travelers and communities exposed to unregulated alcohol sources.

The MethaNO biosensor products are driven by fundamental principles that promise sustainability whilst promoting innovation.

Most methanol test kits require scientific knowledge, specialised equipment, or are costly and slow (as outlined in the Competition Analysis – Direct Competitors section). MethaNO offers a fast, affordable, and user-friendly alternative. As research into synthetic methylotrophs and one-carbon alcohols grows—especially for biofuel—our future R&D can leverage this expanding data to enhance biosensor development.

Our research team has demonstrated that the synthetic biology design for MethaNO is not just empirically supported but also reflects the societal priorities for public health and wellbeing, as the number of reported incidences globally of poisoning in recreational drinks has risen.

By utilizing SWOT (strategic planning framework), MethaNO has been able to identify internal factors (Strengths and Weaknesses), and external factors (Opportunities and Threats), that will help to extend MethaNO’s strategic initiatives of market leadership in methanol screening solutions.

SWOT Analysis

Competition Analysis

This section outlines the competitive landscape surrounding MethaNO, including direct, indirect, and emerging players in the methanol detection and consumer safety space. By analysing existing solutions, adjacent technologies, and future innovations, we identify gaps that MethaNO is uniquely positioned to fill. This assessment informs our strategic differentiation and highlights opportunities for market entry and long-term growth.

Direct Competitors

These are businesses that target the same markets with comparable product or service offerings.

• Alivion Spark: A handheld, portable methanol detector using advanced electrochemical sensing. It is designed for rapid, on-site screening of methanol in beverages, cosmetics, and industrial products. However, the cost is prohibitive for general consumers at approximately AUD 5000 a piece.
• Brewlab Methanol Testing: A laboratory-based service using gas chromatography (GC) to quantify methanol in spirits. It offers high accuracy and regulatory-grade data but requires sample submission and professional analysis.
• Mile Hi Distilling Methanol Test Kit: A basic chemical test kit for home distillers to estimate methanol content in spirits, involving sending samples to GC laboratories and taking 2–3 weeks for results to be returned.
• Sigma-Aldrich Methanol Quantification Assay Kit: A biochemical assay kit for detecting methanol in biological or industrial samples using enzymatic reactions and spectrophotometry for quantification. It is not user-friendly to non-scientific customers.

Indirect Competitors

These are businesses that, while offering different products or services, compete for the same target market by addressing similar customer needs.

• Traditional laboratory testing services: SGS SA, Eurofins, and Intertek provide comprehensive beverage analysis (including methanol testing) in their laboratories. These services are not rapid and do not provide immediate results.
• Authenticating alcohol services: Companies such as Authentix address similar problems by providing brand protection and authentication solutions to combat adulteration and counterfeiting.
• Supply chain authentication and quality assurance programmes: Blockchain-based authenticity platforms and digital solutions like FoodLogiQ and TraceGains offer verification tools for alcohol suppliers. These solutions prevent unsafe methanol levels from entering the supply chain but do not offer direct detection tests.

Future Competitors

These are imminent competitors that could challenge MethaNO’s market competitiveness.

It is evident that MethaNO will face increasing competition from established players in diagnostics and breathalyser manufacturing, particularly as awareness of methanol poisoning grows globally. The rising number of casualties each year is likely to drive investment into consumer-grade testing technologies for alcohol-related toxins and deliberate adulterants.

Advances in sensor technology may lead to multi-analyte kits with longer shelf lives and broader detection capabilities, intensifying market pressure. For instance, researchers at the University of Adelaide have recently developed a portable breathalyser prototype that distinguishes methanol from ethanol using chemical sensing—highlighting growing interest in this space.

To remain competitive, MethaNO must continue to differentiate through affordability, simplicity, and rapid results, while investing in R&D to expand its detection range and integrate with emerging platforms. Strategic partnerships, user-centered design, and agile response to regulatory and market shifts will be key to sustaining its edge in the evolving consumer safety landscape.

Product Designs

Thinking long term, we explored several product designs that align with MethaNO’s core concept of being easy to use and highly portable. Through conversations at outreach events and expert interviews, we identified three designs that resonated most with users: a pour tube design, a dropper design, and a folded test strip design. These concepts are illustrated as mock-up products in Figure 3, reflecting both user feedback and practical usability.

This section outlines MethaNO’s product development plan, built on a thoughtful and structured approach to turning concept into reality. The team has mapped out clear, achievable milestones, identified essential resources, and proactively assessed potential risks to ensure smooth progression from proof of concept to market-ready biosensor.

Business Model Canvas

The MethaNO business model canvas outlines our strategy for delivering a portable, user-friendly methanol detection kit to artisanal producers and safety-conscious consumers. It captures our value proposition, key partnerships, customer segments, and revenue streams to guide sustainable growth and market entry.

Company Milestones

MethaNO’s journey began during the 2025 iGEM competition, where a team of postgraduate students launched a synthetic biology initiative to address methanol contamination. From early fundraising and stakeholder engagement to prototype development and regulatory planning, each milestone reflects MethaNO’s commitment to building a scalable, problem-driven biosensor solution. The timeline below outlines key phases in MethaNO’s evolution from concept to commercialisation.

iGEM Phase — 2025

During the 2025 iGEM competition, a team of postgraduate students founded MethaNO, a problem-focused initiative leveraging synthetic biology to tackle methanol contamination. Over this eight-month journey, the team initiated the proof-of-concept phase, began fundraising efforts, and engaged with key stakeholders. In November, the team will present their progress and findings to a global audience at the iGEM Grand Jamboree.

Access Funding — 2025–Exit

Funding has been critical in supporting both the iGEM team and MethaNO’s early development. To secure resources for laboratory work and outreach, the team successfully pitched to university departments, start-up CEOs, industry partners, and government research organisations. To date, MethaNO has raised over $60,000 to advance proof-of-concept activities and public engagement initiatives.

Outreach to Ensure Market Needs — 2025–Exit

Throughout iGEM, MethaNO has actively engaged with industry stakeholders and potential end-users (see Human Practices). These discussions were designed to ensure the project remains problem-driven and aligned with real market needs. Maintaining a strong connection with customer perspectives will remain essential to ensure relevance and long-term impact.

Proof of Concept Phase — 2025–2026

Building on the foundation established during iGEM, the proof-of-concept phase will extend through 2026. This phase aims to validate the biosensor’s function and reliability through additional DBTL cycles (see Engineering). Continued fundraising and academic mentorship will support these efforts. If the original team cannot continue post-competition, the project may be carried forward by subsequent Macquarie University synthetic biology teams.

Prototypes Developed — MVP (2025–2027)

Conceptualisation of MethaNO’s testing prototype began in mid-2025. Development of a minimum viable product (MVP) will progress in parallel with the proof-of-concept phase, with the goal of producing a working prototype that demonstrates functionality and scalability.

Register MethaNO – IP (2026)

Upon achieving a validated and optimised methanol detection system, MethaNO will pursue intellectual property protection. Securing IP rights will safeguard the enzyme-based biosensor and strengthen MethaNO’s position in the emerging biosensing market. The team will collaborate with legal advisors and regulatory experts to develop a robust IP and commercialisation strategy.

Gain Regulatory Approval — 2027

Regulatory approval will be required for both the production process of the enzyme-based biosensor and its final product application. All genetic engineering work will continue to be conducted within a PC2-certified facility, with GMO activities risk-assessed and registered in compliance with OGTR regulations. The final biosensor, comprising purified enzyme components, is expected to be registered as a food safety detection product, enabling safe and compliant use in consumer or industrial contexts.

Access Fermentation Scale-Up — 2027–Exit

Once regulatory approval is secured, MethaNO will initiate small-scale fermentation runs to validate enzyme production at scale. Partnerships with QUT Bioinnovation Facility and Cauldron Ferm will allow for practical scalability with low capital expenditure that will launch MethaNO into real-world application.

Market Launch — 2028

MethaNO aims to enter the market in 2028, introducing its enzyme-based biosensor as a rapid, affordable, and portable methanol contamination detection solution. Marketing will be targeted to young travellers seeking a practical way to ensure their safety. We will also target craft distillers, offering a simple alternative to risky methods often called the ‘pub test’, thereby helping to uphold best practice and quality assurance.

Exit Strategy — 2030

By 2030, MethaNO anticipates either strategic acquisition by an established food safety or diagnostics company or a partnership model that enables expanded product distribution. This strategy will be strengthened by proven performance, strong sales, and a well-established team and IP.

Risk Assessment

Our risk assessment table identifies potential technical, regulatory, and operational challenges that could impact MethaNO’s development and deployment. Each risk is evaluated by likelihood and impact, with mitigation strategies proposed to ensure project resilience and informed decision-making.

Start-Up Funding Table

The start-up funding table outlines the financial resources required to launch and scale MethaNO, from prototype development to market entry, and eventually the exit strategy.

MethaNO’s competitive edge in the biotechnology sector is anchored in its technical expertise, industry partnerships, specialized research teams, and alumni support networks. These strengths have enabled us to tackle the underreported issue of negligent methanol practices with diligence and innovation. As synthetic biology continues to drive sector growth—reflected in Australia’s biotechnology industry reaching $12.3 billion in 2025 [10]—MethaNO’s biosensor positions us as an early entrant in a differentiated oligopoly market, with strong potential to lead consumer biosensor testing across the Asia-Pacific region.

Research Talent and Infrastructure

Our multidisciplinary team brings together expertise in biotechnology, bioinformatics, engineering, finance, and project management—forming a robust foundation for synthetic biology ventures. Core technical capabilities include genetic engineering, molecular biology, biochemistry, and cell culturing.

We benefit from access to Macquarie University’s Australian Genome Foundry, which provides advanced biotechnology infrastructure and essential lab resources for our proof-of-concept experiments. This accelerates development timelines and supports timely delivery of our minimum viable product (MVP).

Research Collaborations and Biosensor Commercialisation

Exploratory engagement with QUT Bioinnovation Research Facilities and Cauldron has enabled access to high-end infrastructure at low capital expenditure. CSIRO’s advisory relationship with us provided regulatory guidance, facilitating safe and credible commercialisation of our biosensor product.

These partnerships have also granted access to specialised fermentation facilities and bolstered public trust in our new-to-market methanol testing solution. Early collaboration with NSW craft distilleries allowed us to test concepts in real-world settings while building relationships for future pilot programs.

Identified Capability Gaps & Enhancement Strategies

While our foundation is strong, we acknowledge areas for growth. According to OECD Biotechnology Statistics, the biotechnology sector faces persistent talent shortages, with a low unemployment rate of 2.8% and a skills gap among STEM graduates—particularly in hands-on laboratory competencies.

As identified in our risk assessment, MethaNO currently lacks expertise in protein optimisation, machine learning in biology, programming, marketing, and business development. To address this, we plan to expand our team through targeted recruitment, strategic partnerships with academic institutions, and engagement with biotechnology consulting firms.

Our proactive engagement with regulatory consultants and early discussions with the TGA reflect our commitment to resolving compliance challenges ahead of product release.

Stakeholder Matrix for MethaNO

The following key partners—also listed in our business model canvas—have been categorised based on their likely power and interest levels:

• Manage Closely (High Power, High Interest): CSIRO – Critical for our industry support and has significant impact on our development; TGA – Essential regulatory authority with high stakes in product approval.
• Maintain Engagement (High Power, Low Interest): OGTR – Essential regulatory authority for approving genetically modified products; IP Australia – Important for patents but standard procedural interest.
• Keep Informed (Low Power, High Interest): Australian Genome Foundry – Highly interested in proof of concept but limited power; QUT/Cauldron – Very interested in the scale-up success and current alliance partners; NSW Craft Distilleries – Direct customers with high interest but limited control.
• Monitor (Low Power, Low Interest): DFAT Smart Travellers – Useful platform to reach one or more of the addressable market segments; BioPlatform – Advisory role with moderate engagement.

To provide a comprehensive evaluation of MethaNO's broader implications, we examine the sustained direct and indirect effects of our biosensor technology, alongside our commitment to responsible innovation and public health advancement.

Direct Impacts

The direct effects of our project would primarily be the reduction of methanol poisoning incidents globally, particularly in high-risk regions across Southeast Asia where tourism-related fatalities have increased by 15% over the past five years. Our portable detection technology directly saves lives by enabling consumers to identify dangerous methanol concentrations before consumption, creating an immediate protective barrier against accidental poisoning. The technology empowers craft distilleries to maintain rigorous quality control standards, protecting both their brand reputation and consumer safety while reducing liability risks. Additionally, it directly offers a cost-effective way for distilleries to optimize their distillation cuts, improving yield and safety.

Indirect Impacts

The indirect impact extends to strengthening tourism safety infrastructure and potentially influencing regulatory frameworks in methanol-prone regions. By providing accessible testing solutions, MethaNO could encourage governments to implement stricter alcohol safety standards and monitoring protocols. The technology may also drive increased consumer awareness about alcohol safety, creating market demand for higher quality control across the beverage industry.

We also recognise the social nuances that come with improving alcohol safety. While our goal is to reduce methanol-related harm, we acknowledge that a safer drinking environment could unintentionally lead to increased consumption by instilling greater confidence among consumers. As such, we remain committed to promoting responsible drinking alongside safety innovation, ensuring our technology supports public health without encouraging misuse.

In the long term, our project aims to support UN Sustainable Development Goals (SDGs) 3: Good Health and Well-being, and 9: Industry, Innovation and Infrastructure. Through our testing products and commitment to accessible health technology, we aspire to create safer drinking environments worldwide and establish new standards for consumer safety in the alcohol beverage industry.

Macquarie 2025 iGEM Survey

Macquarie University Pitch Deck (ASBC)

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