Sydney-based biotech startup Algenie has emerged from stealth with an ambitious mission: to revolutionize the production of algae, transforming it into a scalable, cost-effective solution for sustainable plastics and biofuels. The company, founded by scientist and serial entrepreneur Nick Hazell, recently secured $1.1 million in early-stage funding to support the development of its proprietary algae growth platform. Investors include the University of Technology Sydney (UTS) and Better Bite Ventures, two entities focused on advancing decarbonization and sustainable production technologies.
While algae has long been recognized for its immense potential to mitigate climate change due to its ability to absorb CO2, production has historically been too expensive and difficult to scale. Traditional methods of growing algae have been held back by inefficient systems that limit light exposure and prevent the continuous harvesting necessary for large-scale production.
Algenie’s technology is designed to address these bottlenecks. The company's proprietary helix-shaped photobioreactor enables algae to grow in thin layers, ensuring maximum exposure to light and creating conditions for rapid growth. Algenie claims this design allows certain algae species to double in quantity every two to three hours, unlocking a level of productivity previously unseen in the industry. The company estimates that, at full scale, it could produce 100 tonnes of algae annually in a space the size of a shipping container, a significant leap forward for the field.
The algae produced by Algenie’s system can be used to manufacture a variety of sustainable products, including biofuels and carbon-positive plastics. For example, the company envisions replacing conventional plastic bottles with algae-based alternatives, stating that 2.5 million carbon-positive bottles could be produced per 100 tonnes of algae. This makes their technology not just an environmental boon, but an economically competitive alternative to fossil fuel-derived plastics.
One of the major breakthroughs of Algenie’s system is its ability to dramatically reduce production costs, which has been a significant barrier to algae’s commercial viability. The company claims it can lower the cost of algae production by a factor of ten, bringing the cost down to just $1 per kilogram. This is achieved through the use of advanced LEDs and an AI-enabled automation system that optimizes growth conditions and minimizes waste.
This reduction in costs is a game-changer for the industry. Historically, algae production has focused on high-value products such as omega-3 supplements due to the prohibitive cost of cultivation. However, Algenie’s ability to scale production and drive costs down opens the door to a much wider range of applications, including the production of biofuels and bioplastics that could replace traditional petrochemical products.
Algenie’s success is built on a strong partnership with UTS, where research by Professors Peter Ralph and Long Nghiem laid the foundation for the company’s algae production technology. The startup is leveraging UTS’s expertise to optimize algae strains and improve the efficiency of its photobioreactor system. This collaboration ensures that Algenie remains at the cutting edge of algae biotechnology, allowing the company to continuously refine its processes and scale its technology for global impact.
Algenie’s long-term goal is to license its technology to partners around the world, enabling industries to co-invest in large-scale algae production infrastructure. The company’s technology has applications far beyond just plastics and biofuels—it could also be used in sectors such as textiles and aquaculture, making it a versatile solution to a wide range of environmental challenges.
According to Nick Hazell, the vision is clear: “If you can get to a price close to crude oil, you can essentially replace petrochemicals.” With the cost of renewable energy continuing to fall, Algenie is well-positioned to achieve this ambitious goal. By combining cutting-edge technology with a scalable business model, the startup aims to lead a new wave of sustainable, algae-based products that will help mitigate climate change and reduce humanity’s reliance on fossil fuels.
With its breakthrough technology and strong backing from investors, Algenie is poised to make a significant impact on the global push for sustainability. As the market for bioplastics and biofuels continues to grow—projected to reach billions in value by the end of the decade—Algenie’s innovative approach to algae production could pave the way for a future where carbon-positive materials become the norm, not the exception.
Algenie’s $1.1 million funding is just the beginning. With plans to scale production and license its technology globally, the startup is well on its way to becoming a key player in the fight against climate change.
Comments