Swedish Algae Factory raises €3M to scale production of diatom-based materials

Swedish Algae Factory has raised €3M in additional funding from new and existing investors, such as Chalmers Ventures. 

Swedish Algae Factory uses diatoms - microscopic algae known for their high-tech silica shells. The company is expanding its factory in Western Sweden to meet increasing demand for its patented Algica material. Algica, derived from the algae’s unique silica shell, has a variety of applications, from beauty and personal care to green chemicals and energy storage solutions.

Diatoms, a type of microalgae, are responsible for producing approximately one-fifth of the planet's oxygen, playing a crucial role in Earth’s ecological balance. Their silica shells possess unique properties, including light-altering, absorptive, releasing, and blocking capabilities, making them ideal for a range of advanced applications.

Swedish Algae Factory’s approach involves harnessing these natural properties to create Algica, a material for use in the beauty, energy, and environmental sustainability industries.

Currently, Algica is used in over 60 personal care products globally. Its natural capabilities have been particularly valuable in cosmetics, where it is employed for its light-reflective properties, making it a sought-after ingredient in skincare and makeup formulations.

"We are beyond excited to have a fully functioning factory that serves our clients globally," said Sofie Allert, CEO and co-founder of Swedish Algae Factory. "We are striving towards a production that is as environmentally friendly as possible, using recycled nutrients and carbon dioxide for algae growth. Our organic by-product is used to produce biogas and eco-fertilizers, but in the future, it may be used in animal feeds, cosmetics, and food products."

“Swedish Algae Factory has done truly groundbreaking work by scaling their production while generating revenue with existing clients, something that takes deep-tech companies usually a lot longer,” said Jonas Bergman, investment director at Chalmers Ventures. “As green chemicals are something that we at Chalmers Ventures find especially interesting, we can’t wait to see what sort of solutions diatom shells can be used to replace harmful products.”