Sustainable Omega-3 producer AlgaeCytes (comprising of UK based AlgaeCytes Ltd and its wholly owned subsidiary AlgaeCytes Germany GmbH) has today announced a €5m funding round with German private equity provider, IBG Risikokapitalfonds III GmbH & Co. KG (IBG), alongside an €11m commitment from the German Federal Ministry for Economic Affairs and Energy’s GRW investment programme.
IBG’s funding reflects their single largest investment in a growth project within the German province of Saxony-Anhalt.
The agreed funding will be used by AlgaeCytes Germany to build, in Dessau, Saxony-Anhalt, one of Europe’s largest bioreactors facility; producing vegan, non GMO, and plant based Omega 3 Eicosapentaenoic Acid (EPA) oils for the food and biopharmaceutical markets.
This €60m project has secured the rights to a 100,000 square meter property, currently owned and managed by the city of Dessau, which is expected to be operational in early 2023.
Zybra Capital is providing project management support to AlgaeCytes Germany.
AlgaeCytes Limited has to date been funded by venture capital specialists, Deepbridge Capital, via the UK’s Enterprise Investment Scheme, and Kent County Council.
Andrew J Cosentino, Managing Director, AlgaeCytes Germany GmbH; “Our commitment to this project and to the region has been steadfast. The support the city of Dessau, and the region of Saxony-Anhalt, has provided AlgaeCytes has been reinforced by the signing of this term sheet with IBG. We are confident this will be the first of many projects in the region and Germany.”
Adrian Neilan, Executive Chairman, AlgaeCytes Limited; “AlgaeCytes has seen significant customer traction in recent years. This further funding is a validation of the underlying business plan, our technology, and our commitment to commercialisation. The signing of the term sheet with IBG is the confirmation of our long term plans for the region and to serve both global customers through Germany.”
Mukul Mohanty, Venture Partner, Zybra Capital; “AlgaeCytes, led by their international management team, has committed itself to this exciting project with significant investment in people and resources. Securing and developing the site near Dessau is a major milestone for this sustainable tech pioneer. We believe this is a strong success story for AlgaeCytes, as it expands its commercial production capabilities, and for the region of Saxony-Anhalt as it attracts cutting edge technology.”