AlgaeCytes Announces First Commercial Plant
Biotechnology company AlgaeCytes Limited has today (24 May 2021) announced plans to build its first commercial plant in Dessau, Saxon-Anhalt, Germany. The plant will be owned and operated by the Company’s German subsidiary, AlgaeCytes Germany GmbH.
The production facility will be a state-of-the-art site housing AlgaCytes’s unique algae-based technology to produce natural, vegetarian, traceable, high-potency algal EPA, beta-carotene and agricultural crop biostimulant from sustainable sources to serve the nutraceutical, pharmaceutical and food verticals.
Total investment in the project is expected to exceed €50m, of which more than €11m is secured through Gemeinschaftsaufgabe “Verbesserung der regionalen Wirtschaftsstruktur”, the GRW. The GRW is a major investment program issued by the German Federal Ministry for Economic Affairs and Energy provided as cash incentives to investments in Germany.
Adrian Neilan, Executive Chairman, AlgaeCytes, commented:
“This is an exciting opportunity for us to build our first commercial facility. Our expectation is that this will be the first of many operations for us planned over the next 5 years across Europe, the US, the UK and the Middle East. After several years of development and initial production, this facility represents an exciting milestone for AlgaeCytes as we seek to meet the high-demand for our products. We are excited by our large addressable market and by how our EPA and natural beta-carotene allow our customers to succeed in bringing new innovations to the market.”
AlgaeCytes has from its inception received funding and guidance from Deepbridge Capital, a UK based venture capital investment fund manager.
Andrew J Cosentino, Managing Director, AlgaeCytes Germany GmbH added:
“We share a common goal with the state of Saxon-Anhalt to promote biotechnology and algae research and to provide a sustainable solution for the nutraceutical industry. The Saxony-Anhalt regional government and stakeholders have been extremely supportive and we look forward to developing this local partnership.”
The Dessau plant has been designed based on the existing AlgaeCytes Kent, UK, facility and will be consistent with the Bauhaus architecture Dessau is globally renowned for. It will also have rooftop solar installations to maximise sustainable energy. It is forecast that construction will commence in Q4 2021 and that the site will be operational by Q3 2022.
Ian Warwick, Managing Partner at Deepbridge Capital, said:
“AlgaeCytes is an exciting portfolio company within the Deepbridge Technology Growth EIS fund. It is great to see the Company reach this significant milestone, which we expect to be the launchpad for significant commercial growth as they develop a facility to serve the market demand for their high-quality products.”
Mukul Mohanty, Venture Partner Zybra Capital, acting as advisers to AlgaeCytes, concluded:
“AlgaeCytes’s focus on sustainability by providing vegan nutrients and removing a reliance on depleting fish stock resonates well with investors and the pharmaceutical industry. We expect that this will make them one of the most valuable biotechnology businesses in the coming years.”
AlgaeCytes Limited will remain headquartered at Discovery Park in Kent where operations and production continue to grow.