Throwing away food is a big problem. U.S., where an estimated 30% to 40% of the food supply is tossed out. However, a team of researchers and chefs is actively working to turn food that was once considered garbage into gourmet delicacies with the help of a particular fungus.

A new research paper in the Nature journal Microbiology breaks it down. In the study, a group of scientists led by Vayu Hill-Maini, Ph.D., a chef, scientist, and postdoctoral fellow at the University of California, Berkeley, details how they use the fungus Neurospora intermedia to ferment foods that were once considered waste.

The researchers discovered that the fungus could grow on a range of byproducts, including fruit and vegetable pulp and plant-based milk waste. They also found that Neurospora intermedia didn’t give off mycotoxins (toxic substances produced by fungi) and created foods that taste good.

“These results showcase the traditional significance and future potential of fungal fermentation for creating delicious and nutritious foods from readily available byproducts,” the researchers concluded.

Neurospora intermedia is already being used at award-winning kitchens, such as Blue Hill at Stone Barns in New York State and Alchemist in Copenhagen. Here’s how it all works.

What is Neurospora intermedia?

Neurospora intermedia is a fungus traditionally used in Indonesia to make a food called oncom from soy pulp. During fermentation, the fungus uses pectin (a naturally occurring thickener) and cellulose (the main component of plant cell walls).

“It has the unique ability to break down cellulose into edible food,” says Andrew Luzmore, chef and director of special projects at Blue Hill At Stone Barns, who uses Neurospora intermedia. “It’s a new tool in our toolkit to provide value and economic value to food waste.

It has the potential to take something and make it valuable.”

What can Neurospora intermedia do to food?

But Neurospora intermedia doesn’t just turn food waste into something edible. “It’s another way to process and make the nutrients more bioavailable,” Luzmore told Food & Wine. The group at Blue Hill At Stone Barns used to send food products to Hill-Maini to be transformed with Neurospora intermedia.

Still, it recently invested in an incubator and tissue culture hood to do it themselves.

Neurospora intermedia can transform food. “With Neurospora intermedia, we have a new tool in the chef’s toolbox—one that brings new colors, textures, and flavors,” Hill-Maini says. “This will open doors to new creativity and innovation to push boundaries in gastronomy.”

But Hill-Maini says sustainability is a significant factor in using this fungus. “It was domesticated in Indonesia to convert waste into food, which stands out among fungi widely used in kitchens today,” he says. “It grows rapidly and robustly on many different waste streams from the food industry, including those frequently produced in restaurants.

Therefore, it’ll open doors to improving sustainability by converting otherwise wasted ingredients into foods—without sacrificing flavor.”

Luzmore has used Neurospora intermedia in sausage, which has a high component of non-meat products like grains and vegetables, to get a smooth texture and create a binding agent.

“When working with the Neurospora, it does bring the texture together and make it more workable,” Luzmore says. He’s also used the fungus to transform stale rice bread into a savory product.

What does Neurospora intermedia taste like?

It depends. “It’s a bit of a chameleon,” Luzmore says, noting that Neurospora intermedia has a “distinct flavor” that can change depending on what you use it on and how you cook it. “When it’s fresh coming out of the incubator, it has a button mushroom, vaguely fruity flavor,” Luzmore says. “It sounds weird, but those flavors are quite pleasant together.”

When cooked, Luzmore says that Neurospora intermedia takes on a “cheesy aroma and flavor,” adding, “It tastes like cheddar cheese.”

Hill-Maini says Neurospora intermedia has “incredible potential” for addressing food sustainability issues. He plans to explore more about using the fungus for upcycling waste and making meat and dairy alternatives.

“We also plan to host workshops for people to learn more about this fungus and share our findings with the world,” he says.

While Luzmore points out that Neurospora intermedia has been used for thousands of years in Indonesia, he is hopeful that it can help transform issues with food waste in other parts of the world.

“It’s still quite early for us in our exploration, but the hope is that this will create a tool to improve our food system,” he says.

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