Slàinte! Omega-3-from-whisky-waste pioneer raises £14m for expansion
MiAlgae plans 3,000-tonnes-per-year facility after validating its process in demonstrator plant
Scotland biotech company MiAlgae, which produces omega-3 from microalgae fed with nutrient-rich wastewater from the whisky-making process, has raised £14 million to accelerate its operations and scale up after it successfully achieved commercial-level production at its demonstrator site at Balfron, Stirlingshire.
The company now plans to develop an industrial scale production facility at an as-yet-unspecified location in Scotland's Central Belt, strategically close to MiAlgae's feedstock supply, customer base, and headquarters. The new plant, which will be serviced by local distilleries, will enable full commercialisation of MiAlage's product NaturAlgae, which it says will meet rising demand across the aquaculture, pet food, and human health sectors for sustainable omega-3s.
The
first phase of the facility - around one-third of the total site - will be
completed by 2025, with full production expected by 2027. Once
fully operational, the facility will have the capacity to produce 3,000 tonnes
of marine omega-3 annually.
New venture capital investors SWEN Blue Ocean, Clay Capital, and Rabo Ventures joined existing backers Equity Gap, Old College Capital, Social Investment Scotland (SIS) Ventures, Ananke Ventures, Ascension Ventures, and Scottish Enterprise, in the oversubscribed funding round.
A significant milestone
“This investment marks a significant milestone for MiAlgae,” the company’s chief executive and founder, Douglas Martin, said in a press release.
“The success of our demonstrator site has validated our technology at scale, attracting serious international support. With this backing, we’re focused on building the infrastructure needed to meet the growing global demand for sustainable omega-3s whilst continuing to advance innovation in biotechnology.”
Most of the omega-3 used today is derived from fish oil from forage fish which are already being fished at their sustainable limit, although omega-3 is increasingly being derived from offcuts of fish caught for human consumption. Algae-based omega-3 is also available and is produced in North and South America from plant-based feedstocks by companies such as Veramaris and Corbion.
MiAlgae offers a local, eco-friendly alternative that that company hopes will reduce what it calls fish farming’s “dangerous dependence on dwindling wild fish stocks”.
Sustainable alternative
Christian Lim, managing director of SWEN Capital Partners, said: “The Blue Ocean Fund targets start-ups tackling threats to our oceans such as overfishing, pollution, and climate change. MiAlgae’s innovative microalgae fermentation addresses the omega-3 supply gap with a scalable, sustainable alternative to fish oil. The market is ready, and we’re excited about their potential impact.”
Ali Morrow, partner at Clay Capital, said: “MiAlgae stands out by combining technology and market demand to address the growing need for fish oil alternatives. As fish stocks decline and prices rise, MiAlgae’s approach is poised for global impact, and we’re excited to see it unfold.”
Shishir Sinha, director at Rabo Ventures, a division of Dutch bank and experienced aquaculture investor Rabobank, said: “The animal feed industry has long sought scalable solutions to reduce the industry’s reliance on wild fish. Douglas and the MiAlgae team have cracked it, with their drop-in omega-3 product. We’re excited to leverage Rabobank’s expertise and network to accelerate their impact globally.”
