September 12, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Microalgae are single-celled organisms that can live in either fresh or saltwater converting sunlight water, and CO2 into biomass. Currently there are about 300,000 known strains of algae, however, there are potentially as many as 5 million. 

Animal agriculture has been associated with a range of environmental, ethical, and health challenges including greenhouse gas emissions, land and water usage, animal welfare concerns, and the overuse of antibiotics leading to bacterial resistance. And given our rate of population growth, finding sustainable and complementary protein sources is crucial. Here is where microalgae has the potential to be an answer. 

In their paper, Microalgae as Sources of High-Quality Protein for Human Food and Protein Supplements, published December 2021, Yanwen Wang, Sean M. Tibbetts, and  Patrick J. McGinn noted, “To fill this gap, researchers and product development specialists at all levels have been working closely to discover new sources of protein, such as plant-based ingredients.”

“In this regard, microalgae have been recognized as strategic crops, which, due to their vast biological diversity, have distinctive phenotypic traits and interactions with the environment in the production of biomass and protein, offering possibilities of production of large quantities of microalgal protein through manipulating growing systems and conditions and bioengineering technologies.”

The rapid emergence, growth, and consumer adoption of alternative proteins also has not been lost on investors looking to gain exposure to these global shifts in dietary relationships and consumer engagement.

This intention is reflected in the recent announcement that Corbion, Phase2.earth, Invest-NL, and Invest International have co-led an investment of more than EUR 9 million in the Netherlands-based microalgae producer Phycom for the disruption of the future of food through the large-scale production of microalgae. The round also drew renewed participation from all of the company’s existing shareholders. 

“Through this investment, Phase2 has taken a step to strengthen our portfolio in the food transition,” said Boudewijn Poelmann, founder, Phase2.earth. “Microalgae will be a key ingredient in the foods of the future and will contribute to a more sustainable world.”

Founded in 2008, Phycom services the B2B food and feed industries with microalgae products and cultivation optimization services. The company explained that its unique modular systems offer unrivaled efficiency and eco-conscious solutions that empower food companies with algal ingredients and enhance specialty production in the feed industry through the functional properties of algae. For the past four years, the Phycom team has been building two production facilities in Veenendaal, the Netherlands, proving the scalability of microalgae production. 

“Invest-NL aims to accelerate the transition to a sustainable food system by investing in innovative technologies for alternative proteins,” said Daan Meijer, investment associate, Investment-NL. 

“Microalgae’s role in this transition and Phycom’s unique technology and large-scale production make us exceptionally proud to add Phycom to our investment portfolio.”

This investment will secure constant industrial-scale production of top-tier quality microalgae, help to expand marketing activities, fund further technological advances, and support the strengthening of the Phycom team at all levels of the organization, including the appointments of new complementary board members in the near future. 

“Investing in Phycom fits perfectly with our AgriFood strategy, helping drive important change in the food system, thereby contributing to the SDGs,” said Eelco Benink, head of equity, Invest International.

“Stepping in this together with Invest-NL, the investment creates direct jobs in the Netherlands, enabling the company to develop an international expansion plan. An excellent example of Dutch Solutions for Global Challenges.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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