Clean Food Group Acquires Algal Omega 3 Ltd to Expand Sustainable Oil Production

What's Happening?

Clean Food Group (CFG), a UK-based food technology company, has acquired the assets of Algal Omega 3 Ltd (AO3) to enhance its production capabilities for sustainable oils and fats. This acquisition allows CFG to produce microbial oils at a commercial scale, targeting markets such as pet food and other food industries. CFG, founded in 2022, utilizes scalable yeast strains and fermentation technology to create sustainable alternatives to traditional fats and oils. The acquisition includes a 12-acre site in Knowsley, Liverpool, which features extensive R&D facilities and a fermentation capacity of one million liters. This positions CFG as a leading manufacturer of yeast fermentation-derived sustainable oils and fats. The company has already validated commercial-scale production at the facility, producing approximately two tons of oil in a single fermentation run.

Why It's Important?

The acquisition by Clean Food Group is significant as it accelerates the company's entry into the sustainable oils market, which is valued at $20 billion. By leveraging the Knowsley facility, CFG can reduce capital expenditure and offer sustainable oils and fats at competitive prices. This development is crucial for industries seeking alternatives to conventional palm and coconut oils, particularly in the pet food sector. The move also highlights the growing importance of sustainable practices in food production, aligning with global efforts to reduce environmental impact and reliance on traditional agricultural methods. CFG's expansion could influence other companies to adopt similar technologies, potentially reshaping the oils and fats market.

What's Next?

Clean Food Group plans to advance its Series A funding round, expected in the first half of 2026, to further support its growth and expansion. The company has appointed Bill Thurston as managing director of the Knowsley facility, who will oversee operations and integration. Thurston's extensive experience in oils and fats will be instrumental in establishing the site as a global leader in sustainable alternatives to tropical oils. As CFG continues to scale its production capabilities, it may attract interest from investors and partners looking to capitalize on the sustainable oils market. The success of this venture could lead to further innovations and expansions in the biotechnology sector.

Beyond the Headlines

The acquisition marks a pivotal moment in UK biotechnology, positioning the Liverpool city region as a central hub for bio-industrial innovation. This development could stimulate local economic growth and job creation, while also fostering advancements in sustainable food production. The integration of fermentation technology in oil production represents a shift towards more environmentally friendly practices, potentially influencing regulatory policies and consumer preferences. As the demand for sustainable products increases, CFG's approach may set a precedent for other companies in the industry, encouraging broader adoption of similar technologies.