Student startup MiAlgae, which uses co-products from the whisky industry to sustainably produce Omega-3 for fish feed, has secured £14 million in funding to build an industrial scale production facility in Scotland.
Founded by Douglas Martin while he was studying for an MSc in Synthetic Biology and Biotechnology in 2016, MiAlgae has now reached commercial-scale of its sustainable marine Omega-3 product, NaturAlgae, at its demonstrator site in Balfron, Stirlingshire.
New venture capital investors SWEN, Blue Ocean, Clay Capital and Rabo Ventures joined existing backers Equity Gap, Old College Capital (OCC) – the University of Edinburgh’s in-house venture investment fund, Social Investment Scotland (SIS) Ventures, Ananke Ventures, Ascension Ventures, and Scottish Enterprise in the oversubscribed funding round.
The global aquaculture industry has expanded more than fivefold in the last 30 years to help feed the growing world population. However, the supply of fish oil, which is the primary source of Omega-3s for farmed fish, has remained stagnant at around one million tons per year.
This fish oil is derived by harvesting 20 million tons of wild-caught fish annually, a practice that is both unsustainable and harmful to marine ecosystems.
The 2023 launch of MiAlgae's demonstrator site has proven the viability of its cutting-edge approach. By repurposing nutrient-rich by-products from whisky distillation, the company grows microalgae, providing an eco-friendly source of Omega-3s.
Building on this success, MiAlgae is now gearing up to take the next step with the development of an industrial scale production facility in Scotland. The new site will enable full commercialisation of NaturAlgae, meeting rising demand across the aquaculture, pet food, and human health sectors for sustainable Omega-3s. This expansion will boost MiAlgae’s production capacity, fuel its global growth, and create new ‘green’ jobs.
Douglas Martin, CEO of MiAlgae , said:
This investment marks a significant milestone for MiAlgae. 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. ”
Andrea Young, Head of Investment at OCC, said:
We have worked with Douglas from the early days and are delighted to continue this support by investing in this new round. It’s been great to welcome the new investors into the company and we look forward to working with them during this exciting phase for MiAlgae.”
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