Scottish biotech MiAlgae secures £14m for new production facility
Founded in 2016 by Douglas Martin, the company utilizes by-products from whisky distillation to cultivate microalgae rich in marine omega-3s, offering an alternative to traditional fish oil.
Having achieved commercial-scale production of its sustainable omega-3 product, NaturAlgae, at a demonstrator site in Scotland last year, MiAlgae is now set to develop a larger industrial production facility. This new site will facilitate the full commercialization of NaturAlgae, addressing the increasing demand for sustainable omega-3s in aquaculture, pet food, and human health sectors. The expansion is expected to enhance production capacity, drive global growth, and create green jobs.
The recent funding round will support the facility's development, expedite commercialization efforts, and enable strategic team expansions.
Martin highlighted the investment as a pivotal moment for the company, noting that the success of the demonstrator site has garnered significant international support. "With this backing, we're committed to building the necessary infrastructure to meet the rising global demand for sustainable omega-3s while continuing our innovation in biotechnology.”
New venture capital investors SWEN Blue Ocean, Clay Capital, and Rabo Ventures joined existing supporters, including Equity Gap, Old College Capital, Social Investment Scotland Ventures, Ananke Ventures, Ascension Ventures, and Scottish Enterprise, in this oversubscribed funding round.
Christian Lim, MD of SWEN Capital Partners, commenting on MiAlgae's potential, said the company’s microalgae fermentation process presents a scalable, sustainable solution to the omega-3 supply gap, stressing that the market is primed for such innovation.
Overcoming scaling challenges
At Blue Food Innovation in London in May, Martin discussed MiAlgae's strategy for overcoming rising infrastructure costs and scaling challenges by ensuring technical and economic feasibility. He emphasized the importance of creating small, decentralized units that maintain sound unit economics as the company grows. By utilizing waste materials, MiAlgae aims to enhance sustainability and streamline the value chain.
Martin also stressed the significance of early-stage partnerships in scaling operations, particularly in securing commitments on feedstock and energy supply, which are vital for scalability. He noted that waiting for startups to reach large-scale production can overlook the time and investment required to achieve such growth. Early commitments on offtakes can be transformative, turning startups into established businesses, he added.
