Biotech Algenie raises $1.1 million to replace fossil fuels with algae

Sydney-based biotech startup Algenie made a splash this week when it launched with $1.1 million in funding from UTS, Better Bite Ventures and strategic investors.

Founded by serial entrepreneur and engineer Nick Hazell, along with Mathieu Pernice and John Martin, Algenie is building a platform that will allow algae to be grown efficiently and affordably at scale, in a bid to replace fossil fuels as the raw material for plastics and fuels and significantly reduce the greenhouse gases in the atmosphere.

When it reaches a commercial scale, Algenie expects to be able to harvest 100 tonnes of algae per year in a space the size of a shipping container. According to the startup, this would be enough to sustainably produce 2.5 million carbon-positive plastic bottles.

Algenie has partnered with the University of Technology Sydney (UTS) and co-founder Pernice is one of the UTS researchers working on the technology. The startup is also using the biological resources and automation equipment within UTS’ Climate Change Cluster to develop and optimise algae strains.

Hazell played a key role in the growth of plant-based protein company v2food, as co-founder and CEO, before departing the company in February 2023 after four years.

He describes Algenie’s helix design and technology as a “true breakthrough” that is “paving the way for algae-based solutions to become economically competitive with and ultimately replace traditional fossil fuel-based products”.

Algae already captures more carbon than anything else on Earth, according to Algenie, however, producing it at scale has previously been too difficult and expensive.

Algenie says its proprietary technology, which employs a novel, helix-shaped photobioreactor that overcomes these obstacles, has the potential to significantly reduce production costs, down to around $1 per kilogram of algae.

“Algae offers immense potential to address climate change and transform multiple industries, but until now, scalable and economical production has remained elusive,” added Hazell in a statement provided to SmartCompany.

Simon Newstead, founding partner at Better Bite Ventures, said the investor is thrilled to be one of the first to back Algenie.

“We got to know Nick through the APAC food tech ecosystem and believe his visionary leadership and deep technical expertise are perfect for this grand challenge–one that can unlock a range of climate-friendly applications from food to fuels and plastics,” he said in the same statement.

Algenie has global ambitions for its technology, which has potential applications across a variety of fields, including biofuels, sustainable plastics, textiles and fish aquaculture.

The company said it intends to license its technology and collaborate with partners to co-invest in large-scale production infrastructure.

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