In the complex and often tumultuous world of algae-based ventures, Australian startup Algenie is making waves with its innovative approach to algae cultivation. While companies like DSM have successfully capitalized on high-value algae ingredients such as omega-3s, many startups have floundered when attempting to commercialize algae biofuels and bulk proteins. Algenie, however, believes it has the key to unlocking the potential of algae on a grand scale.
Emerging from stealth mode, Algenie is banking on its novel thin layer photobioreactors to revolutionize algae production. These bioreactors promise significant improvements in efficiency and scalability, according to cofounder and CEO Nick Hazell. A former R&D executive at PepsiCo and Mars, Hazell also founded the Sydney-based alternative meat business v2food in 2019. His experience with v2food highlighted the economic challenges of growing algae, which led him to delve deeper into the physics of algae cultivation.
Hazell has secured AUD1.1 million ($0.7 million) in funding from the University of Technology Sydney, Better Bite Ventures, and other investors. “At v2, we were excited about using algal protein pigments in plant-based meat but quickly realized that the economics of growing algae were terrible,” Hazell told AgFunderNews. “So it was a case of what do we do? Do we back away or get into the fundamentals of growing algae so we can make something that would cost a few cents per kilo of [alt] meat? And we succeeded.”
The oil companies’ abandonment of algae biofuels due to unfavorable economics has left the current algae market focused on high-value ingredients. However, Hazell argues that no one has truly tackled the fundamental drivers of productivity. Algenie aims to change this by growing microalgae in photobioreactors, where they can control every variable and utilize genetic tools to maximize productivity, all while leveraging cheap renewable energy.
Hazell envisions a future where Algenie’s technology can be licensed for various applications, from biofuels to bioplastics, textiles, and proteins for aquaculture. “If you can get to a price close to crude oil, you can essentially replace petrochemicals,” he said. Simon Newstead, founding partner of Better Bite Ventures, expressed excitement about Algenie’s potential to reinvent algae production and sequester carbon at gigaton scales.
The startup’s approach contrasts with traditional methods of growing algae, which can be either phototrophic (using light) or heterotrophic (using sugars). The latter is a mature industry but has cost limitations and is susceptible to contamination from bacteria, yeast, and mold. Phototrophic processes, on the other hand, can avoid these issues and enable continuous production. “The only way to get high productivity and low cost is to get the algae to their peak performance, keep them there, and harvest continuously,” Hazell explained.
Algenie’s core innovation lies in its patented photobioreactor, which features a continuous helix-shaped channel where algae flows. Advanced LEDs provide optimal lighting, driving rapid growth and reducing production costs by a factor of ten. “Our aim is to get to $1 per kilo,” Hazell said. The design allows for multiple thin layers of algae, maximizing productivity by ensuring each layer receives adequate light.
Under ideal conditions, some algae species can double in quantity every 2-3 hours, potentially producing 100 tons per year in a space the size of a shipping container. Algenie is collaborating with Prof. Mathieu Pernice at the University of Technology Sydney to develop and optimize algae strains. The startup is also using an AI-driven process to conduct parallel experiments and quickly tune the performance of these strains.
Currently, Algenie has a prototype thin layer photobioreactor running in the basement of UTS. The company plans to license its technology, enabling other businesses to utilize it without needing specialized knowledge in algae cultivation. “We want to be an enabler for multiple industries and companies,” Hazell said. Despite skepticism from some investors, Hazell is confident that Algenie can prove its economic viability and transformative potential.