Algiecel Launches Microalgae Production Facility Amidst Fish Oil Supply Challenges

The facility allows Algiecel to boost marine ingredient production capacity fivefold. The company specializes in converting industrial CO2 emissions into microalgae for cosmetics, marking a transition from pilot-scale testing to large-scale industrial supply that does not rely on fish-dependent supply chains.

In early June 2026, the International Fishmeal and Fish Oil Organization noted that cumulative fish oil supply was about 31% lower than expected for the year 2025. Algiecel highlights the severe biodiversity risks tied to the looming El Niño event, which has historically caused fish oil prices to soar.

Fish oil is commonly used in cosmetics for its hydrating and barrier-protective properties, and Algiecel's expansion aims to mitigate the supply chain volatility exacerbated by climate factors. Ricardo Daura Garcia, the company's chief commercial officer, indicates that fish-dependent supply chains threaten marine ecosystems and local communities, and the new facility aims to lessen reliance on dwindling natural resources.

Garcia emphasized the importance of producing marine ingredients under controlled conditions, noting that this approach ensures sustainability and stability for personal care brands. Algiecel's new facility cultivates the microalgae Nannochloropsis oceanica using modular photobioreactors that leverage artificial light, water, and captured CO2. The updated system contains a total volume of 5,500 liters, with 3,240 liters designated for growing the microalgae, significantly improving production capacity compared to its previous pilot system.

This facility is designed for scalability, enabling the addition of modular units to expand operations without substantial re-engineering costs. Algiecel aims to produce 12 tons of biomass annually by 2027 for both the pet food and cosmetics markets.

The global omega-3 market, valued at approximately US$3.3 billion in 2026, is expected to grow to US$5.4 billion by 2033, according to Algiecel. This trend reflects the industry's increasing interest in marine ingredients that are insulated from the volatility of wild catch.

Garcia conveyed that the facility's ability to convert captured CO2 into marine ingredients not only aids in alleviating supply chain pressures but also supports the preservation of marine ecosystems. He stated that global fishmeal and fish oil production has stagnated for two decades due to catch quotas and sustainability limits, while prices have risen sharply.

Fishing has reportedly caused more harm to marine biodiversity than any other human activity over the past 50 years, according to the UN's biodiversity assessment. Garcia warned that the strengthening El Niño event poses additional threats to already strained ocean systems.

With Peru contributing around 20% of the world's fishmeal and fish oil, the country recently set its lowest anchovy quota in ten years, leading to a significant decrease in fish catches and record-high fishmeal prices. He pointed out that smaller buyers in the personal care sector face challenges as supply tightens, impacting their purchasing power.

Algae-derived ingredients are gaining traction in cosmetics for their multifunctional applications. Garcia noted that Algiecel's offerings include both oil-soluble and water-soluble fractions derived from Nannochloropsis oceanica, addressing various skin care needs.

As brands become increasingly interested in incorporating algae-derived actives, the primary barrier to wider adoption is the inconsistency of supply at scale, despite confidence in their efficacy.