Sydney biotech Algenie raises $1.1m for algae growth platform to create clean plastics

Founded by scientist and serial entrepreneur Nick Hazell, and building on foundation research by the University of Technology Sydney’s Climate Change Cluster, Algenie plans to apply the funds to launch a production facility that it hopes will ultimately sows the seeds to potentially replace fossil fuels in the production of plastics and fuels.

Investors in the capital raise include University of Technology Sydney (UTS) and Better Bite Ventures which has several investments that are focused on sustainable food production and decarbonisation technologies.

At commercial scale, Algenie says it could harvest 100 tonnes of algae per year in a space the size of a shipping container, which is enough to produce 2.5 million carbon-positive plastic bottles sustainably.

Algae is known as a super-powered micro plant that can grow rapidly by absorbing CO2, but Algenie’s proprietary growth technology centres around a novel, helix-shaped photobioreactor that overcomes longstanding limits to algae productivity and unlocks its potential for planet-scale production.

This innovative design dramatically improves efficiency and scalability, with the potential to reduce production costs by a factor of 10, bringing them down to $1 per kilogram of algae. 

Algenie says harnessing the biology of algae as renewable energy-powered reactors would enable humanity to replace fossil fuels as the raw material for plastics and fuels, while significantly reducing the greenhouse gases in the atmosphere.

While the biological science of algae production is known, it has historically been too expensive to produce and difficult to scale with conventional technology.

“Algae offers immense potential to address climate change and transform multiple industries, but until now scalable and economical production has remained elusive,” says Algenie CEO Nick Hazell, who previously founded plant-based food maker v2food.

“Our helix design and technology is a true breakthrough, paving the way for algae-based solutions to become economically competitive with and ultimately replace traditional fossil fuel-based products.”

Algenie is collaborating with the UTS as its research partner, leveraging the university’s researchers to rapidly develop and optimise algae strains.

The startup says its photobioreactor system features a continuous process where algae flows down a channel shaped into a continuous helix while advanced LEDs provide optimal lighting conditions, driving rapid growth. 

This innovative patented design enables some algae species to double in quantity every two to three hours under ideal conditions, which Algenie says is enough to produce 10,000 tonnes per year in a hectare-sized field, or 3,000 times more efficiently than conventional soy or corn crops.

The continuous harvesting process at the bottom of the helix ensures constant production, making Algenie’s system significantly more productive and cost-effective than traditional methods. The helix winds, roughly 70cm in width, can produce one tonne of algae annually per unit, with Algenie’s photobioreactor representing a major leap forward in scalable, sustainable algae cultivation technology.

“We’re thrilled to be the first investors in Algenie, a company with the potential to re-invent algae production, in the process of sequestering carbon at gigaton scales,” says Simon Newstead, the founding partner at Better Bite Ventures.

“We got to know Nick through the APAC food tech ecosystem and believe his visionary leadership and deep technical expertise are perfect for this grand challenge – one that can unlock a range of climate-friendly applications from food to fuels and plastics.”

Algenie’s innovative approach to algae cultivation is founded on research by UTS Professor Peter Ralph and Professor Long Nghiem that was aimed at developing an optimised system for carbon absorption and low-energy harvesting of algae.

“By combining our biotech know-how with Algenie’s production technology, together we’re accelerating the development of an algae tech platform that could play a crucial role in mitigating climate change and creating sustainable products for a sustainable future,” says UTS Acting Deputy Vice-Chancellor of Research Professor Chris Turney.

Algenie sees the applications for its technology ranging from biofuels to sustainable plastics, textiles and fish aquaculture, providing a range of opportunities globally for the startup should it achieve commercialisation.

The company ultimately plans to license its technology and collaborate with partners to co-invest in large-scale production infrastructure.