MiAlgae, a pioneering startup specializing in the cultivation of microalgae, has successfully raised £14 million ($18.5 million) in a Series A funding round to advance its mission of producing sustainable omega-3 fatty acids. The funds will primarily be allocated towards establishing a new commercial-scale facility in Scotland, strategically located between Edinburgh and Glasgow. This new facility is expected to significantly scale up production capabilities, allowing MiAlgae to produce thousands of tons of omega-3s annually, starting as early as next year.
The funding round has attracted a diverse group of investors, including SWEN Blue Ocean, Clay Capital, Rabo Ventures, and Scottish Enterprise, among others. With this latest investment, MiAlgae’s total equity funding has now reached £20 million ($26.6 million), underscoring strong investor confidence in the startup’s innovative approach to addressing the growing demand for omega-3 fatty acids amidst declining fish stocks.
Douglas Martin, the founder and CEO of MiAlgae, expressed optimism about the company’s potential impact, noting, “As fish stocks decline and prices rise, MiAlgae’s approach is poised for global impact.” The startup currently operates a demo-scale facility in Balfron, Scotland, capable of producing a few tons of omega-3s per week. The upcoming industrial-scale facility will mark a significant leap in production capacity, aligning with the rising demand for sustainable aquaculture solutions.
MiAlgae’s unique production process sets it apart from established players in the market, such as dsm-firmenich and Corbion, who primarily grow heterotrophic microalgae using sugar as a feed source. Instead, MiAlgae leverages byproducts from Scottish whisky distilleries as a base feedstock. This innovative use of distillery byproducts not only reduces waste but also contributes to a circular economy model, appealing to environmentally conscious investors and customers. Martin elaborated on the process, explaining that the company utilizes the liquid residue left after distillation, which contains carbohydrates, nitrogen, and trace elements, as the foundation for their microalgae cultivation. The fermentation process is carefully managed to ensure sterility and optimal growth conditions.
The market for long-chain omega-3 fatty acids, particularly eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA), is segmented into three main areas: human foods, pet food, and aquaculture. MiAlgae is currently focusing on the aquaculture sector, specifically targeting farmed salmon, to provide a sustainable alternative to traditional fish oil. The aquaculture industry has witnessed significant growth over the past three decades, yet the supply of fish oil remains stagnant, heavily reliant on the unsustainable practice of wild fish harvesting. This has led to a dramatic decline in omega-3 levels in farmed fish, prompting the urgent need for alternative sources.
The introduction of MiAlgae’s NaturAlgae omega-3s aims to bridge this supply gap while promoting sustainability. The biomass produced from their fermentation process can be sold as a liquid concentrate or powder, suitable for use in aquafeed and pet food. Although MiAlgae is not currently targeting human food applications, the potential for future expansion remains, contingent upon further technological advancements in lipid extraction and purification.
The implications of MiAlgae’s advancements extend beyond just the aquaculture industry. By utilizing byproducts that would otherwise go to waste, the company is contributing to a more sustainable and circular economy, appealing to a growing segment of consumers and investors focused on environmental stewardship. The Blue Ocean Fund, which aims to support startups addressing threats to marine ecosystems, recognizes MiAlgae’s potential to mitigate overfishing and pollution through its innovative microalgae fermentation technology.
As MiAlgae prepares to launch its new commercial-scale facility, the stakes are high for both the company and the aquaculture industry. With production set to ramp up in the coming year, MiAlgae is not just poised to meet the rising demand for omega-3s but also to redefine how these essential nutrients are sourced in a world increasingly challenged by environmental degradation and resource scarcity.