Biotechnology company AlgaeCytes Limited is 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 on this project is expected to exceed EUR50 million, of which more than EUR11 million is secured through Gemeinschaftsaufgabe, GRW. GRW is a major program issued by the Federal Ministry for Economic Affairs and Energy provided as cash incentives to investments in Germany.
Adrian Neilan, Executive Chairman, AlgaeCytes, says: “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 five years across Europe, US and the UK and Middle East. After several years of development and initial production, this facility represents and exciting milestone for AlgaeCytes as we seek to serve the high-demand for our products. We are excited by our large addressable market and how our EPA and natural beta-carotene allows our customers to exceed in bringing new innovations to the market.”
AlgaeCytes has from early inception received funding and guidance from Deepbridge Capital, a UK based venture capital investment fund manager.
Andrew J Cosentino, Managing Director, AlgaeCytes Germany, adds: “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 Saxon-Anhalt regional government and stakeholders have been extremely supportive and we look forward to developing local partnership.”
The Dessau plant has been designed based on the existing AlgaeCytes Kent, UK, Facility and consistent with the Bauhaus architecture Dessau is globally renounced 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, says: “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, says: “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 continues to be located at Discovery Park in Kent where operations and production continue to grow.
