MiAlgae secures £2.5 million to turn whisky waste into commercial-scale Omega-3 production

Scottish biotechnology company MiAlgae has secured a £2.5 million (approximately US$3.3 million) investment from the Scottish National Investment Bank to support its new commercial-scale Omega-3 production facility in Grangemouth, Scotland, as it prepares to expand manufacturing capacity and more than double its workforce.

• Scottish National Investment Bank invests £2.5 million (US$3.3 million) in MiAlgae's Grangemouth facility.
• The company converts whisky distilling by-products into algae-derived Omega-3 ingredients for aquaculture and pet nutrition.
• MiAlgae expects its workforce to grow from 60 to approximately 156 employees by the end of 2028.

The investment marks another step in MiAlgae's transition from biotechnology development to commercial manufacturing, providing additional financial support for a production facility designed to supply Omega-3 ingredients without relying on wild-caught fish.

Founded in 2016 by Douglas Martin while he was studying synthetic biology and biotechnology at the University of Edinburgh, MiAlgae has developed a process that uses by-products from Scotland's whisky distilling industry to produce an algae-derived Omega-3 powder.

The technology brings together two established Scottish industries, whisky production and biotechnology, using material from one as a resource for the other. Rather than allowing distillery by-products to go to waste, MiAlgae uses them in its production process to generate ingredients for animal nutrition.

Its initial commercial focus is on aquaculture feed and pet nutrition, two markets in which Omega-3 fatty acids are valued for their nutritional properties. In pet food, Omega-3 is associated with healthy skin and coats, cognitive function and joint health.

Fish oil has traditionally been a major source of Omega-3 for these applications. MiAlgae's alternative offers feed manufacturers an algae-derived ingredient that the company describes as fully traceable, while reducing dependence on marine resources.

The approach has already attracted international attention. In 2024, MiAlgae was shortlisted for The Earthshot Prize in the Revive our Oceans category, recognizing the potential of its technology to reduce pressure on marine ecosystems.

The latest investment is intended to help translate that potential into larger-scale production.

MiAlgae expects its workforce to increase from its current 60 employees to approximately 156 by the end of 2028, representing the creation of around 96 additional jobs. The expansion would also strengthen the company's presence in Grangemouth, an established Scottish industrial center where efforts are underway to develop new economic activity.

For Martin, the investment is an important part of the company's plans to increase production while maintaining its original environmental objectives.

“This investment brings us closer to achieving our mission of protecting our oceans while meeting growing global demand for sustainable nutrition. By transforming whisky industry by-products into high-value Omega-3 ingredients, we are reducing pressure on marine ecosystems, preventing waste and creating a truly circular solution,” said Martin, Founder and CEO of MiAlgae.

“The new facility represents a major milestone for MiAlgae and will enable us to scale our impact significantly in the years ahead, while playing a part in the regeneration of Grangemouth as a sustainable industrial hub. We’re excited to have the Scottish National Investment Bank on Team MiAlgae.”

The University of Edinburgh, where Martin originally developed the foundations of the business, has remained a supporter of MiAlgae's technological development.

The Scottish National Investment Bank's involvement reflects its mandate to provide long-term investment in businesses contributing to economic development, innovation and environmental objectives.
Its investment in MiAlgae addresses all three of the Bank's stated impact missions: supporting innovation, accelerating the transition to net zero and strengthening communities through economic development.

Jane Reoch, Executive Director of Innovation at the Scottish National Investment Bank, highlighted both the technology and its potential contribution to the local economy.
“MiAlgae is one of Scotland’s most promising biotech companies. It has stellar innovation credentials and true scale-up potential, all while reducing any negative impact on our oceans and contributing to our circular economy,” said Reoch.

“This investment ticks all three of our impact missions: innovation, net zero, and our place mission which aims to support thriving communities. MiAlgae’s growing presence and creation of high-quality jobs at Grangemouth contributes to the area’s industrial economy.”

The Grangemouth development is particularly significant given the site's industrial heritage. The area has long been associated with petrochemicals and heavy manufacturing, and MiAlgae's planned expansion would introduce additional biotechnology employment as part of its evolving industrial base.

For MiAlgae, the immediate priority is establishing the production capacity needed to serve commercial customers in aquaculture and pet nutrition. Its use of whisky industry by-products also provides a distinctly Scottish supply chain for an ingredient traditionally associated with marine harvesting.

The company has not disclosed the facility's planned annual production capacity or a timetable for reaching full commercial output. Its workforce forecast, however, indicates the scale of expansion anticipated over the next two years.

(Main image shows representatives of the Scottish National Investment Bank and MiAlgae, including Founder and CEO Douglas Martin, mark the £2.5 million investment in the company's Grangemouth production facility)

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