Microalgae Protein - The Promise and the Problem

Despite years of research, large-scale, affordable production of microalgae as a protein source remains elusive. The primary obstacle is the sky-high production and harvesting costs.

The main challenge lies in separating the 2-4 micron-sized algae cells from large volumes of water. Conventional methods like ultrafiltration are prohibitively expensive for everyday food products. Research is ongoing into using chemicals for algae flocking, but this approach is not suitable for products intended for human consumption due to potential health risks.

90% of the production of microalgae is produced in giant open raceway ponds (ORP) with a productivity of 20 grams per square meter per day. Cultivation in ORP is also challenging due to risks of flooding and contamination of bacteria and zooplankton. The remaining 10% are produced with photobioreactors and fermentation systems, high in CAPEX and OPEX. 

While microalgae holds great promise as a sustainable protein source, overcoming these technical and economic challenges is essential to make it a staple in our diets.

Because of these limitations, the majority of the microalgae industry focuses on high-value niche products in the food tech, food supplement, pharmaceutical, and beauty sectors instead of bulk food production. 
Producers invest in their own brands, marketing directly to consumers who are willing to pay a premium for vegan sustainability - “Think plant-based omega-3 supplements” This allows for decent margins but limits overall market size.


Our market approach
The OPEX of our produced protein and Omega 3 oil is just a fraction of the OPEX for photobioreactors and fermentation. This gives us a competitive edge where we can approach wholesalers and brand owners with existing customers. 

We target the protein and omega-3 sectors. 

Protein
Algae protein is hypoallergenic, being a complete protein without common allergens like soy, fish, or dairy. It's also naturally lactose and gluten-free, suitable for those with intolerances.

We produce a flour with 70% protein. Its natural in taste and smell and can be used to increase the protein content in bakery, pasta, cereals etc. as well as bulk protein supplements for muscle enlargement. 
Companies in our network are using microalgae protein with mushrooms getting a product texture and taste close to beef meat. Those are very interested in starting production when we can supply. The market for microalgae-based protein is giant. 

The global algae protein market was valued at USD 3b in 2021, and is expected to expand at a CAGR of 8.4% from 2022 to $6b in2030. The market for protein food supplement was valued at USD 26b in 2022, with expectations to grow from USD 27b in 2023 to USD 52b by 2030

Omega 3
The Omega-3 oil contains 30-40% EPA and DHA. It's a vegan and sustainable alternative to krill/fish oil as a food supplement. Besides omega-3 it contains other valuable fatty acids. 

The 2023 market stood at $7.5b and is projected to reach nearly $15b by 2032.