Scottish biotech company MiAlgae, which grows environmentally-friendly omega-3 via recycling waste by-product, has received £14 million in fresh funding.

New investors SWEN Blue Ocean, Clay Capital, and Rabo Ventures backed the Scots firm alongside existing backers such as Scottish Enterprise, Social Investment Scotland (SIS) Ventures, and the University of Edinburgh’s Old College Capital.

The company, which is based at Heriot-Watt University, utilises by-products from whisky distillation to grow microalgae. The microalgae is a source of omega-3, a key ingredient for aquafeed, and can reduce reliance on wild fish as a source of this ingredient.

The fresh investment comes shortly after the launch of MiAlgae’s demonstrator site in 2023. Now, the biotech is gearing up for the development of an industrial-scale production facility in Scotland.

The new site is set to enable the full commercialisation of its NaturAlgae product to meet demand from sectors such as aquaculture, pet food, and human health. Further, the funding round will also help with green jobs.

Speaking on the new funding, CEO of MiAlgae, Douglas Martin, said: “This investment marks a significant milestone for MiAlgae. The success of our demonstrator site has validated our technology at scale, attracting serious international support.

“With this backing, we’re focused on building the infrastructure needed to meet the growing global demand for sustainable Omega-3s whilst continuing to advance innovation in biotechnology.”

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Ali Morrow, who serves as partner at Clay Capital, further added: “MiAlgae stands out by combining technology and market demand to address the growing need for fish oil alternatives. As fish stocks decline and prices rise, MiAlgae’s approach is poised for global impact, and we’re excited to see it unfold.”

Director at Rabo Ventures, Shishir Sinha, also remarked: “The animal feed industry has long sought scalable solutions to reduce the industry’s reliance on wild fish. Douglas and the MiAlgae team have cracked it, with their drop-in omega-3 product.”