Algiecel secures €6.5m to help scale microalgae technology
The funds will be used to scale the company’s microalgae-based CO2 utilization technology, which is designed to transform carbon emissions into high-value, sustainable ingredients.
Algiecel’s photobioreactors, designed in modular containers, use microalgae to capture CO2 and convert it into commodities like omega-3 oils and proteins. The startup is promoting a revenue-sharing model by deploying these bioreactors near industrial CO2 emission points, such as biogas plants, repurposing emissions and turning them into a revenue stream.
Addressing UN SDGs
With trials for its algae-based products - including biomass and bio-oil - already underway, Algiecel is attracting strong commercial interest, particularly from companies in sectors like pet food, food and feed, and cosmetics, the startup's founder and CEO, Henrik Busch-Larsen, told us.
Many of these companies are actively pursuing Science Based Targets initiative (SBTi) goals to reduce their environmental impact. "Our ingredients not only help companies lower their climate footprint, but they also deliver on performance and quality," said the chief executive, who previously headed up another Danish feed focused innovator, Unibio.
Algiecel’s microalgae ingredients have minimal carbon, land, and water impact, he continued. This allows customers to replace less eco-friendly ingredients and achieve Scope 3 emissions reductions, a critical factor for sustainability-conscious businesses, said Busch-Larsen.
"Through our technology, we’re addressing several key UN Sustainable Development Goals (SDGs), including Life on Land, Life Below Water, and Climate Action," he added.
Strategic alliances
With the new capital injection, Algiecel, which was established in 2021, is entering an exciting phase of growth, according to the founder.
The company plans to build strategic partnerships with CO2-emitting industries and secure additional agreements for the distribution of its algae-based products.
Overcoming scaling challenges
Algiecel’s pilot plant launched in 2022. Those operations are based at the Danish Technological Institute (DTI) in Taastrup, Denmark. It is now poised to expand to a full-scale demonstration plant as part of the CAPCO2 project, supported by Denmark’s Energy Technology Development and Demonstration Program (EUDP) and Novonesis.
“One key challenge as we scale is integrating with our CO2 suppliers’ infrastructure—water, power, and CO2 sources need to be seamlessly connected,” explained Busch-Larsen. "We also need to prove we can sustain high productivity levels and maintain continuous operation over extended periods."
Regulatory pathway
A portion of the new funding will also go toward regulatory approvals for Algiecel’s food products, as the company has already cleared the regulatory landscape for feed, pet food, and cosmetics.
"We are focused on engaging potential clients and are currently conducting application trials," noted the founder. "We expect these efforts to result in off-take agreements soon, which will enable us to scale further."
