Algiecel Launches Microalgae Facility Amid Fish Oil Supply Challenges

The new facility significantly boosts Algiecel's marine ingredient production capacity by fivefold. The company specializes in converting industrial CO2 emissions into microalgae for cosmetic applications, marking its transition from pilot-scale operations to industrial-scale supply that relies less on fish-dependent sources.

Current global fish oil supplies are under severe strain, with the International Fishmeal and Fish Oil Organization reporting a 31% decline in cumulative fish oil supply across leading production regions by early June 2026 compared to the previous year. Algiecel highlights the El Niño phenomenon as a significant threat, historically linked to spikes in fish oil prices.

Fish oil is widely used in cosmetics for its hydrating and barrier-protecting qualities. Algiecel foresees an increased demand for sustainable marine ingredients as supply chain volatility rises due to El Niño. Ricardo Daura Garcia, chief commercial officer at Algiecel, expressed concerns that fish-dependent supply chains pose risks to marine ecosystems and local communities.

Daura Garcia noted that growing marine ingredients in controlled conditions eliminates dependence on the ocean, making sourcing decisions increasingly environmentally conscious. He emphasized that the climate's impact on supply chains directly affects the beauty industry, with overfishing leading to further ecological degradation and supply issues.

The Kalundborg facility cultivates the microalgae species Nannochloropsis oceanica in compact, modular photobioreactors, using artificial light, water, and captured CO2. The system's design allows for scalable production, with a total photobioreactor volume of 5,500 liters, greatly enhancing output from pilot operations.

The facility is expected to yield 12 tons of biomass annually starting in 2027, targeting the pet food and cosmetics markets. Algiecel predicts that the global omega-3 market, valued at approximately $3.3 billion in 2026, will grow to $5.4 billion by 2033.

The transition away from fish-dependent marine ingredients aims to alleviate pressure on ecosystems while addressing supply chain concerns in the cosmetics sector. Daura Garcia stressed the urgency of preserving biodiversity, mentioning that global fishmeal and fish oil production has plateaued for over two decades due to catch quotas and sustainability limits. With ongoing pressures from El Niño, he warned of potential catastrophic impacts on marine systems.

In an average year, Peru supplies about 20% of the world’s fishmeal and fish oil. This year, it set its lowest anchovy quota in a decade, resulting in record high fishmeal prices after an early halt to its main fishing season.

Daura Garcia noted that the tightening supply creates challenges for smaller buyers in personal care, who have less leverage than larger industries. He maintains that Algiecel’s facility demonstrates that marine ingredients can be produced industrially using captured CO2, ensuring a consistent supply regardless of environmental fluctuations.

Microalgae products are particularly valued for their versatility in cosmetic formulas. Algiecel’s biomass is divided into two functional fractions: the oil-soluble portion offers antioxidant protection and supports skin barriers, while the water-soluble fraction contains proteins and minerals beneficial for hydration.

While brands show interest in algae-derived actives, Daura Garcia acknowledged that the unreliability of large-scale supply has slowed wider adoption in the industry.