Algiecel takes microalgae platform to industrial production with fivefold capacity jump

Danish microalgae ingredients company Algiecel has opened a new production facility at Novonesis' Kalundborg site, increasing its production capacity almost fivefold and putting the company on course to supply 12 tons of biomass annually from 2027.

• Algiecel's new 5,500-liter reactor increases production capacity almost fivefold from its 700-liter pilot system
• The facility uses captured CO2 from an operational biogas plant at the Novonesis site in Kalundborg
• Production is expected to reach 12 tons of biomass annually from 2027, initially targeting pet food and cosmetics

The facility marks Algiecel's move from pilot-scale validation toward recurring commercial production of microalgae-derived marine ingredients, with pet food and cosmetics among its first target markets.

Located inside Novonesis' Kalundborg operation, one of the world's largest enzyme manufacturing sites, the new reactor has a total volume of 5,500 liters, of which 3,240 liters is used to cultivate microalgae. Algiecel's previous pilot system had a cultivation volume of 700 liters.

The move also provides a test of the technology under more representative industrial conditions. Rather than using commercially bottled carbon dioxide, the new system receives captured CO2 from an operational biogas plant at the site.

Algiecel said this allows it to demonstrate that its cultivation process can perform using industrial-grade inputs after more than 10,000 operating hours accumulated with its pilot reactor.

The company has developed a modular production system, meaning additional capacity can be installed by adding identical reactor units rather than redesigning and engineering progressively larger vessels.

"Our customers are looking for a scalable, high-quality and sustainable alternative to the fish oil they are sourcing today. Algiecel is on a path to deliver just that. We’ve run our pilot reactor for more than 10,000 operational hours, and the biology performs as we designed it to," said Susanne Palsten Buchardt, CEO of Algiecel.

"At a moment when fish oil supply is under real pressure, this facility is where we prove we can deliver a reliable alternative, produced under industrial conditions, at the volumes our customers need. It’s the starting platform we’ll use to scale further as demand grows."

The timing comes as conventional fish oil supply faces renewed pressure. According to figures cited by Algiecel from marine ingredients organization IFFO, cumulative fish oil supply across Peru, Chile, Iceland, the Faroe Islands, the UK, Denmark and Norway was around 31% below 2025 year-to-date levels by early June 2026.

Forecasts of an El Niño event developing during the 2026-2027 season have added to concerns over future availability and pricing. Previous El Niño events have disrupted anchovy catches in major producing regions, with knock-on effects for marine oil supplies.

Algiecel is targeting markets where fish oil and other marine-derived ingredients are already established, while offering production under controlled conditions that is independent of wild-catch volumes.

From 2027, the company expects the Kalundborg operation to produce 12 tons of biomass a year as it progresses from supplying samples to recurring customer orders. The global omega-3 market was valued at approximately US$3.3 billion in 2026 and is projected to reach US$5.4 billion by 2033, according to figures supplied by the company.

The new facility follows Algiecel's DKK60 million (approximately US$9.0 million) funding round in 2024, which supported development and scale-up of its technology.

The choice of Kalundborg also gives Algiecel access to an established industrial environment built around shared infrastructure and resource streams.

"Kalundborg shows what happens when companies work together to get more value from shared infrastructure, side-streams and industrial expertise," said Ghita Hansen, Vice President, Enzyme Production Denmark at Novonesis. "It creates the conditions for new technologies to scale faster than they could alone. Algiecel’s new facility is a strong example of that."

Jan Lysgaard Thomsen, Municipal Director at Kalundborg Municipality, added: "Algiecel’s investment in Kalundborg shows what happens when a small country backs big ideas. Denmark’s strength in biosolutions and our circular-economy approach are coming together here - good news for jobs and for Denmark’s place in the industries of the future."

The production expansion follows several additions to Algiecel's senior team. Earlier this year, former Ørsted and Siemens Wind Power executive Tove Feld was appointed chair of the board, while Mette Ingeman Pedersen joined as CFO after previously leading finance for Topsoe's Power-to-X business.

Algiecel's next step is to use the Kalundborg installation as the commercial starting point for its modular scale-up model, adding further production capacity in response to customer demand.

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