Algiecel Launches Industrial Microalgae Facility for Fish Oil Alternatives

Algiecel has inaugurated a new microalgae production facility at Novonesis’ enzyme manufacturing site in Kalundborg, Denmark. The Danish microalgae ingredients company has increased its production capacity almost fivefold, aiming to supply pet food and cosmetics customers with an alternative to fish oil. The facility marks a shift from pilot-scale testing to industrial-scale supply, with the company expecting to produce 12 tonnes of microalgae biomass annually from 2027.

The move addresses growing demand for marine ingredients not reliant on volatile, ocean-dependent supply chains. Algiecel states the facility demonstrates its process works under real industrial conditions after several years of testing.

Technology and scalability of the photobioreactor system

The new facility cultivates the microalgae Nannochloropsis oceanica in compact, modular photobioreactors using artificial light, water, and captured carbon dioxide. The photobioreactor is directly connected to the CO2 supply of an operational biogas plant on the same site.

This turns captured CO2 into high-value nutrients, proving the process works with real industrial inputs. The system's total volume is 5,500 liters, with 3,240 liters used for active growth, a significant increase from the 700 liters in its pilot system.

The design scales by adding identical modular units. This allows for expansion without major re-engineering. "The Kalundborg facility is a scale model. It will be used to scale our first large-scale commercial facility, using this validated footprint," said Daura Garcia, the company's chief commercial officer. Further capacity can follow customer demand more precisely.

Market pressures driving demand for alternatives

Global fish oil supply is under acute strain, heightening demand for alternatives. According to data from the International Fishmeal and Fish Oil Organization cited by Algiecel, cumulative fish oil supply across leading production regions was approximately 31% lower than 2025 levels in early June 2026.

Forecasters have identified a new El Niño event for the coming season. This natural climate pattern causes unusual warming in the Pacific Ocean and threatens biodiversity. "The [El Niño] phenomenon has historically pushed fish oil prices to record highs," Algiecel stated. The resulting supply chain volatility is increasing demand for a marine ingredient source independent of the ocean.

Fish oil is commonly used in cosmetics for its hydration and barrier-protecting properties. The supply pressure is also felt in pet food. In a related move, Scottish company MiAlgae began building a fish-free omega-3 facility in Grangemouth late last year to supply pet food manufacturers.

Strategic positioning and customer validation

Algiecel positions the new facility as a reliable, scalable alternative backed by proven technology and customer demand. Susanne Palsten Buchardt from Algiecel noted that customers are seeking a scalable, high-quality, and sustainable alternative to fish oil. The company has run its pilot reactor for more than 10,000 operational hours with the biology performing as designed.

At a moment when fish oil supply is under real pressure, this facility is where we prove we can deliver a reliable alternative, Buchardt said. The microalgae fractions offer skin barrier, antioxidant, hydration, and conditioning benefits for cosmetics.

The location within Novonesis’ site is strategic. Ghita Hansen, Vice President of Enzyme Production Denmark at Novonesis, stated, Kalundborg shows what happens when companies work together to get more value from shared infrastructure, side-streams and industrial expertise. This collaboration creates conditions for new technologies to scale faster than they could alone.

Algiecel expects to produce 12 tonnes of microalgae biomass annually from 2027 for the pet food and cosmetics sectors as it transitions to recurring commercial supply.