The Rise of Checkerspot: Revolutionizing the Algal Oil Industry

California-based Checkerspot has introduced a groundbreaking innovation in the world of oils and fats. They have developed a high-oleic algal oil that closely mimics the fatty acid profile and performance of high-oleic palm oil, but without the need for genetic engineering.

High-Oleic Algal Oil vs. Regular Palm Oil

Traditional palm oil has a high saturated fat content, while high-oleic palm oil is considered a more premium product with lower levels of saturated fat. Checkerspot’s algal oil, produced from the microalga Prototheca moriformis, boasts a whopping 55-57% oleic acid, surpassing the levels found in high-oleic palm oil. Furthermore, it maintains comparable levels of palmitic acid while having nearly identical saturated fat levels to high oleic palm oil.

Applications and Advantages

Checkerspot’s algal oil is targeted at a wide range of applications, from infant formula to cosmetics and nutraceuticals. The company’s non-GMO approach to producing the oil eases regulatory hurdles and expands the potential market for their product. Notably, Checkerspot has also created structuring fats, high-oleic frying oils, and functional lipids found in human breast milk from Prototheca moriformis.

Unit Economics and Business Model

CEO John Krzywicki of Checkerspot acknowledges that the unit economics of microbial fermentation may not yet compete with highly commoditized oils. However, the company focuses on select ingredients and applications where customers are willing to pay a premium for specific functionalities and ethical sourcing. Checkerspot follows a partnership and licensing-based business model, collaborating with partners for scale-up and commercialization.

Domestic Supply Chains and Future Prospects

Jim Kim of Builders VC, an investor in Checkerspot, highlights the challenges of relying on Latin American cultivation for high-oleic palm oil. Checkerspot’s microalgae-based platform offers a consistent and scalable alternative, addressing the growing demand for domestically produced and reliable alternatives to global supply chains.

Conclusion

Checkerspot’s innovative approach to algal oil production is reshaping the industry landscape. With a focus on high-value niches and sustainable practices, the company is poised to make a significant impact in various sectors. As they continue to refine their products and expand their market reach, Checkerspot represents a beacon of innovation and sustainability in the world of oils and fats.

Further Reading:

– Algenie emerges from stealth with next-gen bioreactor for algae’s potential in various industries

– Brevel partners with leading beverage company to develop microalgae-fueled products

– MiAlgae secures funding to scale production of omega-3s from microalgae

– Provectus Algae disrupts livestock methane reduction space with cost-effective tech