Clean Food Group Expands Production with Strategic Acquisition of Fermentation Capacity

UK-based Clean Food Group, a pioneering startup in the production of customized oils using oleaginous yeast, has recently expanded its operations by acquiring one million liters of fermentation capacity in Liverpool. This acquisition comes from Algal Omega 3 Ltd, which entered administration earlier this year.

The strategic move is set to accelerate Clean Food Group’s commercialization efforts and enable the mass production of microbial oils without substantial capital expenditure involved in building new facilities. CEO Alex Neves shared insights during the Future Food-Tech summit in London, emphasizing the benefits of this acquisition.

Validated Production Capabilities

According to Neves, “We’ve already validated commercial-scale production in 100,000-L reactors at the site, effectively manufacturing two tons of oil in a recent fermentation run. This significantly de-risks the acquisition.”

To lead operations at the new facility, Bill Thurston, a seasoned food industry expert known for his leadership in Unilever’s edible oils and fats business, has been appointed Managing Director. This facility has a history of producing various fermentation-based products, including xanthan gum and algal oil.

Neves remarked, “The site possesses essential infrastructure, enabling us to streamline our entire production process. Earlier this year, some scale-up activities were conducted in conjunction with our work with investor Döhler, which provides access to lab, pilot, demo, and commercial-scale resources.”

Advanced Extraction Processes

The Liverpool site is equipped with downstream processing capabilities, allowing Clean Food Group to efficiently extract oil from yeast cells through a solvent-free wet extraction process, a notable advancement in their production methods.

Regulatory Approvals and Future Plans

Clean Food Group has successfully secured regulatory approval for its CleanOIL25 product within the cosmetics market across the EU, the UK, and the US. The company is now preparing the necessary documentation to gain regulatory approvals for food applications, although Neves acknowledged the potential delays in the EU’s novel foods process. Fortunately, the absence of genetic modification in their yeast strains simplifies the approval process.

Customized Fatty Acid Profiles for Market Demand

The technology that powers Clean Food Group was developed at the University of Bath by Professor Chris Chuck, who now serves as the company’s technical lead. Neves explained that the proprietary yeast strain undergoes directed evolution to enhance oil production while also allowing for the customization of oil profiles, ranging from liquid oils to semi-solid fats and harder saturated fats.

Despite the challenges in unit economics for microbial fermentation relative to traditional oils, Neves believes this approach can succeed for specific ingredients that command a premium price due to their unique functional benefits and ethical profiles, which are often absent in conventional oils.

“We’re not trying to replace commodity oils. Our first product, developed in partnership with [beauty products manufacturer] THG LABS and [specialty chemicals company] Croda, offers specific functionality tailored for the cosmetics industry,” he remarked.

So far, Clean Food Group has raised approximately £8 million ($10.7 million) from a diverse pool of investors, including Agronomics and Döhler, alongside non-dilutive funding. Neves is now preparing to launch a Series A funding round to support their continued growth.

Related Developments

As the industry evolves, interest in fermentative fats continues to grow, highlighting innovative projects such as:

• NoPalm Ingredients and NIZO’s collaboration on a demo-scale yeast oil factory in the Netherlands
• Nourish Ingredients establishing a global commercial hub in Leiden
• Checkerspot unveiling a high-oleic palm alternative without genetic modification