Fermentalg’s Focus on DHA35 & Microalgae Innovation Pays Off
03 Mar 2017 --- Fermentalg, an industrial biotechnology company that specializes in the production of oils, proteins and pigments derived from microalgae, has reported an upbeat year in 2016, with growth in the DHA35 market showing particular success.
As well as positive growth in it’s key identified markets, 2016 saw the company take delivery of the infrastructure and building of its future production unit in Libourne.
The company says that keeping the promise it made at the time of the company's IPO, which was to give priority to markets with a very high value-added, has aided in the positive year.
The company focused on its scientific and commercial efforts on 5 target products: DHA, an essential fatty acid (Omega-3) with a concentration rate of between 35% (DHA35) and 60% minimum (DHA60), natural coloring agents such as Phycocyanine (natural blue pigment) and Astaxanthine (natural red pigment) and an algal protein rich in antioxidants.
These products, which are primarily intended for the food and feed and human and animal health markets, currently offer the fastest and most attractive market prospects amongst the numerous potential target clients identified by the company.
Focusing on DHA35
However, above all, 2016 saw Fermentalg invest in the industrialization of its most advanced product, DHA35.
After signing a development and production agreement with its partner ARD, the company say it has been able to produce its first batches of DHA-enriched microalgae oil on an industrial scale, which have been sample tested with several potential partners at the start of this year.
Growth in this area looks strong. According to Innova Market Insights, the use of microalgae oil in 2016 product launches increased by 24% from 2015 in the botanical herbal supplements sector.
Additional Innovations
Beyond the production of oils, proteins and pigments, Fermentalg also identified another major potential application for its technology that uses microalgae to capture CO2.
The company has joined forces with the SUEZ Group to create the 1st "carbon sink" solution.
After the worldwide avant-premiere of a new prototype at the COP21 Solutions exhibition at the end of 2015, a test unit was set up at a wastewater treatment facility in the Paris region in January 2017.
Stronger governance going forward
To accelerate its commercial development going forward, Fermentalg appointed Philippe Lavielle to the position of Chairman and CEO in November 2016.
An expert in the management of innovative businesses, primarily within the biotech sector, he notably spent more than 20 years with Genencor, one of the leading architects in industrial enzymes acquired by DuPont, before being appointed President and CEO of VIRDIA, a company specializing in the development of innovative industrial solutions in the production of biofuels and bioproducts.
Cash assets of €15.7 million at the end of 2016
Revenue in the form of financial contributions from Fermentalg partners amounted to €0.14 million in 2016 as against €0.48 million in 2015.
After investments for the period, including €6.5 million devoted to the industrial scale-up of DHA35 and the completion of the IDU building, gross cash amounted to €15.7 million at the end of 2016.
