MiAlgae raises U$18.5M to revolutionize omega-3 production with sustainable microalgae technology

By Agroempresario.com

In a significant step toward sustainable aquaculture and pet food solutions, Scotland-based startup MiAlgae has secured a $18.5 million Series A funding round. The investment will support the construction of a new industrial-scale facility designed to produce omega-3 fatty acids from microalgae, positioning the company as a key player in providing sustainable alternatives to fish oil in the global aquafeed market.

Scaling sustainable omega-3 production

MiAlgae’s recent funding round, backed by notable investors including SWEN Blue Ocean and Rabo Ventures, will enable the company to move from a demo-scale facility to a full-scale commercial plant capable of producing thousands of tons of omega-3s per year. The new facility, located between Edinburgh and Glasgow, will start production in early 2025.

Founder and CEO Douglas Martin emphasized the urgency of MiAlgae’s mission in light of declining fish stocks and rising prices. "The global demand for omega-3s is growing, and traditional sources like fish oil are no longer sustainable. Our microalgae-based solution offers a scalable, eco-friendly alternative," he said.

Harnessing circular economy principles

MiAlgae stands out by utilizing byproducts from Scottish whisky distilleries as the primary feedstock for its algae. Instead of relying on expensive inputs, the startup transforms distillery waste, rich in carbohydrates and nutrients, into valuable omega-3 fatty acids. This innovative approach supports the circular economy by reducing waste while creating high-value products.

"We’re tapping into an abundant, local resource that would otherwise go to waste," said Martin. "Our process not only produces omega-3s but also returns cleaner water to the environment, removing up to 95% of the nutrients from the distillery byproducts."

A growing market for omega-3 alternatives

The market for omega-3s, particularly in the aquafeed and pet food sectors, is expanding rapidly. The aquaculture industry, responsible for supplying much of the world's fish, relies heavily on fish oil for omega-3s, but this practice is becoming unsustainable. By offering a viable alternative to fish oil, MiAlgae aims to help the aquaculture industry reduce its environmental impact and maintain healthy omega-3 levels in farmed fish like salmon.

Currently, MiAlgae is focusing on serving the domestic aquaculture industry, providing a consistent, sustainable source of omega-3s. Looking forward, the company plans to expand its reach into other markets, including pet food and human supplements, though the latter will require further refinement of its extraction processes.

Innovation for a blue economy

MiAlgae’s successful funding round highlights the growing investor interest in technologies that contribute to the blue economy. Christian Lim, managing director of SWEN Capital Partners, praised MiAlgae's potential: "Their microalgae fermentation process addresses the omega-3 supply gap in a sustainable, scalable way, offering a real alternative to fish oil and helping to tackle overfishing."

As the aquaculture and pet food industries continue to search for sustainable ingredients, MiAlgae’s innovative approach has positioned the company as a leader in the next generation of omega-3 production. With its new facility set to launch in 2025, MiAlgae is poised to make a significant impact on the global market for omega-3 fatty acids.