Interview
Algal Bio’s Plan to Scale-up Microalgae Solutions for Food, Health, Climate, and more

For years, algae – fast growing, photosynthetic organisms that live in aquatic and terrestrial environments – have been seen as having immense potential to address numerous chemical and technical applications. So far, though, converting the potential of algae and microalgae into actual products has proven a challenge, despite the existence of dozens of algae-focused start-ups around the world.

Algal Bio, a Japanese startup founded in 2018, hopes to change that through it’s creation of a unique, Algae Development Platform, and a model in which the company does research and development alongside clients, developing commercial products together.

“Microalgae is a kind of an undiscovered mineral resource,” said Masafusa Oe, Algal Bio’s Chief Operating Officer. “We provide the research and development service to the corporations or a company who wants to develop something with microalgae, and in that way, we believe that we can expand the opportunity for microalgae products.”

Algal Bio algae-based solutions include alternative protein sources, functional components like carotenoids and essential fatty acids. These products aim to address the global protein crisis, enhance health and wellness, and promote sustainability.

“We know that mineral resources are limited, and we will have a challenge on how to make our livelihoods sustainable,” said Oe. “Microalgae can contribute to sustainability.”

This platform is built upon the Algae Library that Algal Bio has developed. This library includes diverse collection of algae strains obtained through nature, collaborations with the University of Tokyo, and in-house research. This allows them to tailor and target applications using diverse algae materials that other startups lack.

There are numerous applications of proteins and other molecules procured from algae strains. Because algae cultivation requires minimal land, water, and energy compared to traditional agriculture, there is also the potential to provide sustainable alternatives to finite natural resources and supporting industries in adopting clean and green technologies.

There are countless potential applications for algae solutions, across numerous industries. So far, Algal Bio has worked primarily with clients in healthcare, cosmetics and food industries.

For customers, though, shifting from traditional sources of molecules and proteins to algae-based solutions can seem like a big hurdle. That is why Algal Bio works with companies to develop and test solutions. Algal Bio also helps companies see if their algae-based solutions are scalable outside the lab, as they operating a pilot plant in Japan that customers can utilize.

“It can be challenging for clients to make decisions, so we divide the process step by step,” said Oe. “First we provide the feasibility study service, then if the feasibility study works well, we then go to the level scale test, and if that test achieves the client’s KPIs, and then we step into pilot scale test, and if it works well, then move towards commercialization.”

The means that Algal Bio will work with clients for three or even five years, though they are hoping to streamline the development process as they build more expertise on algae and shorter this process. Soon, Oe hopes to go even further with clients.

“In the future, we would like to shift more and be a partner with clients, tackling the market together,” said Oe.

There are potentially bigger applications of their technology too. One area that Algal Bio sees future potential is in carbon sequestration and removal. As the world warms rapidly, with recent reports that the 1.5° Celsius barrier(by The Conversation Media Group Ltd）, seen as crucial to limiting the most harmful impacts of climate change, has been breached, removing Carbon Dioxide (CO₂) from the atmosphere will become more important in addressing greenhouse gases. Algae can play a role.

“Algae can capture 50 times more CO₂ than forests,” said Oe. “So currently there are many clients who are interested in Algal Bio as part of the portfolio of their decarbonization, but we still need to develop this project.”

There’s international potential too. With the support of JETRO, Algal Bio has stared doing feasibility studies and collaborations with companies in Thailand, and is exploring opportunities in Indonesia, Singapore, the United States, and Europe.

“We received a lot of that support and help, advice, suggestions from JETRO and we were connected with clients or partners through JETRO too,” said Oe.

Despite the progress Algal Bio has made with existing and potential clients, microalgae is still a minor player. In order to expand the potential benefits of their biotechnology, Algal Bio needs to grow.

“To be competitive, it is mandatory for us to continue to expand,” said Oe.

That means increasing the number of commercial products, expanding their client base, expanding to new industries and developing business models with clients. With the power of algae on their side, Oe and his team see bountiful potential for Algal Bio.