Click here for more information about Algenuity
Click here for more information about LiqofluxPhenometrics Buy 3 Get 1 Free
Visit cricatalyst.com!Evodos Separation Technology

Money

British investors take a close look at Firglas

August 26, 2018
AlgaeIndustryMagazine.com

Fredrik Adams, Founder and CEO of Swedish startup Firglas, is a cleantech entrepreneur with ten years of experience in technology venture capital. He has raised and deployed more than £120m into renewable energy and algae projects since 2010. He formed Firglas as a management company in 2013 to deliver renewable energy projects after raising an EIS fund with Sustainable Technology Investors.

Chris Tosic writes in the Financial Times that the Enterprise Investment Scheme (EIS) offers high-risk investors generous tax breaks in return for investing in early-stage start-ups. Wealthier investors hit with cuts to pension tax relief have also embraced it as a way of cutting their tax bills. EIS investors receive income tax relief of 30 per cent on up to £1m per year (rising to £2m for so-called knowledge-intensive companies), tax-free growth, and the potential to offset certain losses against income tax — as well as the chance of stumbling upon the next big company of tomorrow.

As demand has grown, the type of investments that qualify for EIS status has been restricted. However, the spectrum is still broad enough to include everything from space technology to algae farms.

“EIS encourages investment into some of the most exciting and innovative companies, creating jobs and wealth for the economy whilst giving investors a real chance of backing the next big thing,” says Alex Davies, founder of broker Wealth Club.

L’Oréal is the number one patent holder of algae products in the world. Health supplements containing chlorella and spirulina are popular with consumers due to high concentrations of omega-3, and already line the shelves of health food shops. Mr. Adams says these are “enormously high margin,” attracting price tags of between £10 and £20. More than 70 companies already produce chlorella, and the market for omega-3 is said to be worth $1.3bn. But there are hundreds of thousands more strains of algae not yet commercially developed and the supplement market remains young and fast growing – hence the opportunity for EIS investors.

In Rotterdam, Netherlands, Swedish-born entrepreneur Fredrik Adams is overseeing his Firglas algae farm, destined for £20 jars of food supplements, high-protein fish feed and meat-free burgers.

The fish food market is by far the largest, due to huge consumer demand for commercially farmed fish, and this is where most of the algae grown in Firglas’s Rotterdam farm will end up. Firglas’s feed will be higher value than the cheapest on the market, containing more protein, but is higher cost and higher margin too, says Mr. Adams.

Firglas is currently raising £3m to expand its pilot, which consists of a large plastic tube of liquid green algae, winding intestine-like around the floor. Next year, a one hectare greenhouse next door — currently teeming with tomato plants — should be full of tubes of watery algae, producing up to 100 tons of dry algae a year.

The company claims it has created a way of producing algae in water which will enable it to produce greater volumes at a higher quality and lower cost than its competitors.

But, so far, Firglas has not proved its ability to produce algae at significant scale and does not yet have a commercial plant up and running. Once it does, it will have to secure contracts from major companies to turn its slime into algae burgers or vitamin pills, and will need to prove it can compete in the global fish food market.

Read More

More Like This…

Copyright ©2010-2019 AlgaeIndustryMagazine.com. All rights reserved. Permission required to reprint this article in its entirety. Must include copyright statement and live hyperlinks. Contact editorial@algaeindustrymagazine.com. A.I.M. accepts unsolicited manuscripts for consideration, and takes no responsibility for the validity of claims made in submitted editorial.

twittertopbarlinks_eventstopbarlinks_requesttopbarlinks_archives

From The A.I.M. Archives

— Refresh Page for More Choices
Trade Arabia reports that the Oman Centre for Marine Biotechnology (OCMB) recently signed a memorandum of understanding with Swedish Algae Factory to support the domestic...
“The Israeli food-tech industry has been growing in leaps and bounds in recent years and is taking a leading role worldwide with a broad range of innovative companies and...
JapanNews.com reports that Euglena Co., a Tokyo-based maker of nutritional supplements, is spending ¥5.8 billion ($5.3 million USD) on building a test refinery that conve...
Israeli-based Algatechnologies, Ltd. (Algatech), is teaming up with the Italian R&D company, Sphera Encapsulation S.r.l (Sphera), to develop innovative functional ingredi...
Foodbev.com reports that French marine ingredients company Algaia will install a new specialty seaweed extract unit at its facility in Brittany, France, after securing €4...
San Diego, CA and Kailua-Kona, HI-based Cellana, Inc. has signed an Asset Purchase Agreement with Cyanotech Corporation for the sale of Cellana’s six-acre production and ...
Environmental Technology magazine notes that the difficulty in predicting how algae blooms will develop lies in their variform nature. With a multitude of different bloom...
Julianna Photopoulos writes in Horizon EU Research and Innovation magazine that UK start-up Skipping Rocks Lab aims to use natural materials extracted from plants and sea...
AlgaEnergy, a Spanish biotechnology company specializing in the production and commercial applications of microalgae, and Yokogawa Electric Corporation, a leading provide...
Jason Huffman writes in UndercurrentNews.com that the Kampachi Company, a mariculture business focused on expanding the environmentally sound production of sashimi-grade ...
Steve Fountain writes in fortstocktonpioneer.com that, amid the 800-page law that last month set the country’s farm policy through 2023, is the expansion of federal suppo...
Jessica D'Lima writes in AdvancedScienceNews.com that medicine is moving towards minimally invasive procedures, which have important patient-oriented benefits such as sho...