Alganalys 130220

Microalgae
A market analysis carried out as part of the Interreg KASK IVA project:
Blue Biotechnology for Sustainable Innovations, "Blue Bio"
January 2013

3 Summary
7 1. Background
9 2. Microalgae Player Picture in the Nordic Countries
32 3. Global Microalgae Market Segments and Potentials
46 4. Analysis on How the Nordic Countries Best can Capitalise on its Strengths in
the Light of Current and Emerging Opportunities for Algal R&D, and in the
Context of International Competition
65 5. References and Sources
67 Appendix 1: Microalgae Biology
72 Appendix 2: Microalgae Cultivation and Upscaling
Contents

The project Blue Biotechnology for Sustainable Innovations, or "Blue Bio", commis-
sioned this study to obtain a view on the feasibility and potentials of developing a future
microalgae global knowledge hub, with accompanying algae based bio-economy, in the
Nordic countries in general and in the KASK-region in particular.To facilitate this, the
study has emphasized an overview of current microalgal activities and resources in the
Nordic countries, embracing R&D and expertise environments, commercial players,
algae strain collections, relevant infrastructures, etc.
Based on this information, on market potentials for algal products and services, and
on the algal interest globally, a brief analysis has been carried out regarding how the
Nordic countries best can capitalise on its strengths in the light of current and emerging
opportunities for algal R&D, and in the context of international competition.This is
however a complicated matter, and a deeper study into this great treasure of information
is recommended to be able to give really qualified advice on how the Nordic countries
best can capitalise on its strengths.
According to the survey, in the Nordic countries 25 universities and R&D:s are
working on algal projects, while only 7 companies are working on commercial algae
projects. It is concluded that academia in the Nordic countries has great expertise in the
environmental and ecological sectors for microalgae, especially (but not exclusively) in
the marine sector, however not many substantial business activities related to algae are
identified.
The study shows that the Nordic countries has a wealth of biological expertise to offer
to establish algae as part of a bio-based economy, both through high tech approaches
to use algae as an industrial biotechnology platform, and by developing algal products
and services in the concept of integrated bio refining.This is complemented by exten-
sive ecological expertise that helps to understand and model the role of algae in climate
change and develop them as bio-indicators for environmental impact."
There might be several reasons for the lack of commercialisation of this wealth of algal
expertise in the Nordic countries, but in this study, we wish to hold forth the two
following problems and our suggestions for how to solve them:
Summary
3

1. A lack of integration of the research community across the breadth of relevant disci-
plines: this needs to be catalysed by providing funding for multidisciplinary research
programmes, and where possible, these should be linked to collaborative demonstra-
tion sites also involving industry.
2. Progress in the field has been seriously hampered by lack of funding.The Nordic
countries are in grave danger of being marginalised on an international scale, since
especially the US and BRIC countries have been and are investing heavily in this
arena. Unless this situation is remedied, further opportunities will be lost.
It is recommended to develop a virtual Nordic countries centre of excellence on algae
to provide consolidation of resources and knowledge and hence much needed capacity
building in multidisciplinary expertise. Such a centre would need to receive core funding
from the research councils or other public sources and supplementary funding also from
private sector on e.g. contract research basis, to support both fundamental scientific
research needed, underpinning the development of novel algal products and services as
well as ensuring openings for commercial gateways. Hence, it would work closely with
a network of industry-led pilot and demonstration sites on LINK-type projects.These
would facilitate the optimisation and deployment of integrated algal solutions at
increasing scale.
Further it is recommended that the research councils in the Nordic countries
together with other funding entities like banks, venture capital and support from
relevant industries establish an algal Technology Innovation Centre (TIC). A TIC
would provide the pull-through to commercialisation beyond the technology readiness
levels which mostly fall under the remit of the research councils.
The above models might adopt inputs from well proven concepts from Australia:
Cooperative Research Centers (CRC), where Academia, industry, and capital work
closely together to address market needs through common robust R&D.The combina-
tion of a strategically-funded academic centre of excellence that builds on the strengths
of the algal research community in the Nordic countries, with a technology tnnovation
centre that takes step-changing research outputs through to commercial application,
would provide a complete and strong pipeline which would provide direct benefit to the
Nordic countries by commercializing the potentials and contribute to a sustainable bio-
based economy in the Nordic countries.
4

Further to the Summary:
1. An area with particular developmental potential in the Nordic countries at this time
appears to be the exploitation of high value chemicals for the cosmeceuticals and
nutraceuticals markets in the context of industrial biotechnology.
2. Residues after extraction may be used for anaerobic digestion and the resulting
biogas injected into the gas grid, although co-digestion with another feedstock will
be needed to provide the necessary economies of scale. Biomass production costs can
be lowered by growing the algae on nutrient-rich waste water and with waste CO2
;
appropriate regulatory standards would need to be met.
3. Other areas of significance include:
A. Replacing fishmeal in animal feed.
B. Developing integrated growth systems with anaerobic digestion and aquaculture.
C. A new and valuable source for omega-3 both for aquaculture and for the omega-3
industry.
D.The Nordic countries have a world leading greenhouse and horticulture expertise
which might contribute to the development of illumination systems adapted to
microalgae.
E. A further opportunity for the Nordic countries lies in using its R&D excellence to
develop IP that can be applied in places more suited to large-scale algal
production.
F. Generating IP e.g. for liquid biofuels (to be applied internationally),
The Nordic countries in general, and the KASK “corridore” in particular,
represent a generic competitive edge in a European and global context: robust
economies, strong cross border communication and collaboration lines in science,
business, culture and politics.This combined with strong maritime and marine
traditions, contemporary aquaculture and fishery industries, and substantial
biomedical expertise and players is also a strong and versatile platform out
from which to launch and create new economies like those based on marine
biotechnology.
Hence, given adequate public support and other necessary frameworks together with
strong engagements from the private sector, algae have the potential to become a sub-
stantial driver in the development of a bio-based economy in the Nordic countries.
5

According to FAO statistics, world food production from fisheries and aquaculture are
about 140 million tons annually, which is only a small fraction of the 7.5 billion tons
produced on land.To be able to feed 9 billion people in 2050, a strong growth in the
food supply from the sea on a global basis is needed. Meanwhile the people of the rich
world are suffering of lifestyle diseases such as obesity, cardiovascular diseases and
diabetes, and the proportion of older people increases.
Therefore, in the long term, world fisheries and aquaculture industry are facing an
increasing demand both in terms of volume products and food specialties that
contribute to wellbeing and good health.
The marine industry has, however, even with its relatively green profile (area efficient,
low carbon footprint and effective FCR (Feed Conversion Ratio)), also significant
challenges.The important thing is to ensure an adequate supply of feed for the growing
production.The biggest bottleneck in this respect is probably the availability of marine
lipids. Both salmon and people need supply of the polyunsaturated lipids (DHA and
EPA) to stay healthy.
Therefore, consequently, in the long term, the demand of polyunsaturated oils
becomes a major challenge.
The pressure on fishery resources has a sustainability aspect which also brings with it
a strong price pressure on raw materials and inputs. Ingredient industry therefore looks
for new sources of marine oils not only by harvesting of the oceans’ resources at lower
trophic levels, but also by cultivating.
Microalgae are Pointed Out as a Potential Future Solution.
But, the price of algae-based production of marine oils (omega-3 etc) for feed and
human consumption is still relatively high.Technological developments (photobio-
reactors and processes) can, however, make such a production competitive over time. In
addition, microalgae represent a special dimension of sustainability by being autotrophic
(produce nutrients from inorganic materials), very effective on energy costs (light) and
by capturing carbon.
Although there is a relatively large international R&D activity in this field, there are
distinct challenges, both regarding upscaling of cultivation technology and downstream
processing, to be able to produce high priced nutrients, ingredients to dietary sup
plements and pharmaceutical products in a way that is economically sustainable in
the short term. Production of algae as a complete feed or as a carrier of bioenergy has
however revealed greater economic potential in the long term.To be successful when
large-scale applications of micro algae biotechnology get their breakthrough we must
establish a business and competence environment in terms of knowledge, technological
and market position. One of the goals of the Blue Bio project has been to research the
possibilities for and to support the development of such a platform.
1. Background
7

The Nordic countries have a great treasure of relevant microalgal experience both in the
academic arena, and in industry.
Blue Bio commissioned this study to understand the landscape of the microalgae
players for the Nordic countries.To facilitate this, the study takes stock of current
microalgal activity in the Nordic countries. Build on this information and on markets
potentials for algal products and services and the algal interest globally, a brief analyses
has been performed on how the Nordic countries best can capitalise on its strengths
in the light of current and emerging opportunities for algal R&D, and in the context
of international competition. A deeper study into this great treasure of information is
recommended to be able to give qualified advices on how the Nordic countries best can
capitalise on its strengths.
The inventory has been divided into the following parts:
A. Microalgal culture collections
B. Universities and scientific institutions
C. Microalgae cultivation as feed in aquaculture
D. Industrial microalgal activity in the Nordic countries
E. Industrial microalgal activity operating outside Nordic countries
2. Microalgae Player Picture in the Nordic
Countries
A. Microalgal Culture Collections
We have identified two very central cultural collections in the Nordic region, which is
very well connected to World Federation for Culture Collections (WFCC).
B. Universities and Scientific Institutions
Several universities and scientific institutions have cultivated microalgae to do research
on microalgal biosystematics, biochemistry, physiology and species have been screened
for bioprospecting purposes.Their contribution in developing microalgae knowledge
and experience to establish the marine juvenile production has been significant and
important. Now, these institutions are contributing in the work of developing micro
algae biomass as a source for biofuel, animal and human nutrition ingredient production
Summary of the Study:
9

as well as a number of other important biopolymers for the pharmaceutical and cosmetic
industries.
The following institutions are covered by this study:
Denmark:
• AlgaeCenter Denmark
• Danish Technological Institute
• Skaldyrcenter
• Technical University of Denmark (DTU)
• Aalborg University
• Aarhus University
Finland
• Finnish Environment Institute (SYKE) is collaborating in the following projects;
• VTT Technical Research Centre of Finland
Norway
• Institute of Marine Research (ImR)
• Nofima
• Norwegian University of Technology and Science (NTNU)
• SINTEF
• University of Bergen (UiB)
• University of Life Sciences (UMB), at Ås
• Department of Animal and Aquacultural Sciences, at Ås
• Bioforsk
• University of Oslo (UiO)
• University of Stavanger
• University of Tromsø (UiT)
10

Sweden
• Chalmers University of Technology
• KTH, Royal Institute of Technology
• Linnaeus University
• Mälardalen University
• Nordic Microalgae
• Swedish University of Agricultural Sciences
• Uppsala University
C. Microalgae Cultivation as Feed in Aquaculture
• A summary has been made of several marine fry and bivalve hatcheries
D. Industrial Microalgal Activity in the Nordic Countries:
• Algalif AS
• Algro Freberg
• BM Energy Group and AstaNovo AS
• CO2
BIO
• MicroA AS
• Promar AS
• Statoil AS
E. Brief Nordic Industrial Microalgal Activity Operating Outside Nordic
Countries
• MicroAlgae AS
• Sahara Forest Project
11

2A. Microalgal Culture Collections
The World Federation for Culture Collections (WFCC) (through the activities of
Professor Skerman, University of Queensland, Australia, and his colleagues in the
1960’s) pioneered the development of an international database on culture resources
worldwide.The result is the WFCC World Data Center for Microorganisms (WDCM).
This data resource is now maintained at National Institute of Genetics (NIG), Japan
and has records of nearly 476 culture collections from 62 countries.The records contain
data on the organisation, management, services and scientific interests of the collections.
Each of these records is linked to a second record containing the list of species held.
The WDCM database forms an important information resource for all microbiological
activity and also acts as a focus for data activities among WFCC members.
Microalgae strains encountered in the WDCM may be ordered and sent from the
respective culture collection in order to start up an aseptic algae culture.
(http://www.wfcc.info/home/)
There are two algae culture collections in Scandinavia, one in Denmark and one in
Norway.
DMC 935:The Scandinavian Culture Collection of Algae and Protozoa (SCCAP) at
the University of Copenhagen was initiated in 1986 as an outcome of the recommenda-
tions by an international panel evaluating ’Danish Hydrobiology’.The recommendation
was supported by the Science Faculty at the University of Copenhagen and the Danish
National Science Foundation.The Culture Collection, hereafter known as SCCAP, was
originally based on the collection of algal cultures set in the 1950s and 1960s by Tyge
Christensen. Many of his cultures, e.g. Vaucheria spp., are still maintained in the collec-
tion.
The SCCAP presently comprises more than 900 strains (c. 265 genera and 460
species) with representatives from most algal divisions. Nearly 700 are available to the
public.
The Collection contains in particular marine nanoplankton flagellates, benthic marine
brown and green algae, and a growing number of dinoflagellates.
The SCCAP is headed by the curator Gert Hansen. (http://www.sccap.dk/)
WDMC 498:The Culture Collection of Algae (NIVA) was initiated in the early 1960s,
when a selection of microalgal cultures was brought together to be used in experimental
studies and bioassays in research on water pollution at the Norwegian Institute for
Water Research (Norsk institutt for vannforskning, acronym NIVA).Today the collec-
tion comprises more than 750 strains of prokaryotic and eukaryotic microalgae repre-
senting ca. 300 species. Most of the strains were isolated from Norwegian lakes, rivers
and coastal waters.The collection has particularly been developed for studies related to
cyanobacteria, and includes ca. 490 strains of this group.The filamentous cyanobacte-
ria compose the largest fraction. Many of the cyanobacterial strains possess the ability
12

to produce toxins, volatile biogenic substances, biohydrogen or other compounds of
environmental or technological significance.The main objective of the NIVA Culture
Collection is to isolate, maintain and supply microalgal cultures for use in research,
teaching and for applied purposes.The collection has promoted research on microalgal
biosystematics, biochemistry, physiology, and was instrumental in the development of
algal culture technology at NIVA and elsewhere.
Olav M. Skulberg (olav.skulberg@niva.no) and his wife Randi Skulberg are respon-
sible for the collection which is financed by the Norwegian Ministry of Environment.
2B. Universities and Scientific Institutions
Denmark
1. AlgaeCenter Denmark, www.algecenterdanmark.dk
Consortium including collaborators from Aarhus University, Danish Technological
Institute(DTI), Kattegatcentret and Ocean Centre Denmark.
The Kattegatcenter in Grenaa Harbour has a recirculation system for research and
development in the use of algae as a resource for sustainable energy, food, medicine and
food ingredients.
2. Danish Technological Institute Karin Svane Bech, kasb@teknologisk.dk
DTI is currently leading the project “The Macro Algae Biorefinery – sustainable
production of 3G bioenergy carriers and high value aquatic fish feed from macroalgae
(acronym: MAB).The project aims at converting brown macro algae (Laminaria and
Saccharina) to liquid biofuel and using the waste products for fish feed.The project runs
from 2012 – 2016.
DTI is partner in AlgaeCenter Denmark which is a research- and development plant
located in Grenaa, Denmark, dedicated to increase the knowledge on cultivation of macro
algae under controlled conditions.The plant is the first plant of its kind in Denmark.
DTI was leading the nationally funded project on energy production (AlgaeCenter
Denmark (Ulva lactuca)) using the green macro algae sea lettuce (Ulva lactuca) as a
feedstock for bioethanol, biogas and solid combustible biofuels.The project aimed at
producing Ulva biomass in land based growth systems and through harvest, handling
and conditioning to convert the algae biomass to energy.The project involved major
Danish universities and energy companies and ran from 2009 – 2012.
Further, DTI are involved in two projects with algae for energy and value added
products which currently are in contract negotiation with the European Commission,
one project BioWalk4BioFuel addresses the usability of various macro algae as feedstock
for biogas plants and the other EuroBioRef includes algae among several biomass types
in a biorefinery concept producing a range of products including transport fuel and non-
fossil chemical.
13

The main involvement from DTI is on:
• Project design and management
• Design of growth facilities,
• Harvest, handling and conditioning of the biomass e.g. drying, size reduction,
pelletizing
• Thermal conversion of the biomass
• Quality characterization according to international standards e.g. CEN, ISO
and DIN
DTI has a complete laboratory for physical, mechanical and chemical characterization
of solid biofuel and a pilot plant with laboratory-to-full-scale equipment for test and
production of solid biofuel pellets and feed pellets.
3. Skaldyrcenter
Jens Kjerulf Petersen, jkp@skaldyrcenter.dk
The Danish Shellfish Centre does research in production technology and ecological
impact of macroalgae. Currently they work on Laminaria and Palmaria.
They also develop hatchery procedures e.g sporolation, test new species and develop
on-growing procedures.
4.Technical University of Denmark (DTU)
Biosystems Division, Risø National Laboratory for Sustainable Energy
Claes Gjermansen, clgj@risoe.dtu.dk and Anders Brandt
DTU works on biodiesel fuels derived from microalgae.
Production of triacylglycerols in agricultural plants like canola, soybean, palm tree or
other oil producing plants for biodiesel cannot be scaled up without seriously compro-
mising global food supply. Economical production of lipids in microalgae requires an
efficient and cost-effective cultivation of microalgae species that produces high amounts
of lipids.
DTU have chosen to study a limited number of microalgae species for oil production.
These species are being mutagenized and variants with proper phenotypes are being
selected.Targets for improvements are: Increased growth rate, increased cell size,
elevated lipid content, improved salt tolerance (for seawater algae), and enhanced lipid
extraction yield. Analyses including fatty acid composition of neutral and polar lipids by
liquid- and gas-chromatography coupled with mass spectrum analyses as well as
fluorescence spectroscopy and flow-cytometry employing specific dyes. Screening of
existing culture collections as well as algae collected from natural habitats will also be
performed in order to identify species that may accumulate even higher amounts of
lipids.The characteristics of the ultimate microalgae for large-scale lipid production
are: Easy to cultivate in inexpensive media; fast growth and high biomass production;
resistance to biological contamination; enhanced and consistent lipid production; easy to
harvest; simple lipid recovery
14

The well-characterized green algae, Chlamydomonas reinhardii has also been chosen as
a model. Mutations are induced by genetic engineering and by conventional methods.
The experiments serve as “proof of concept” for various genetic modifications and selec-
tion methods. If successful, similar protocols will be used for improvement of other
microalgae species without employing in vitro DNA-techniques.
DTU are also studying the robust Dunaliella sp., which can tolerate a wide range of
pH and salt concentrations.This species is more vital in a wide range of environmental
conditions and thus expected to be more economically useful than other algal species for
large scale cultivations in the sea or in ponds. Manipulating the supply of CO2
, the salt
concentration and/or the nitrogen content of the growth medium significantly influenc
ed the lipid production of the algae.
5. Aalborg University
Department of Biotechnology, Chemistry and Environmental Engineering
Niels T. Eriksen, Associate Professor, nte@bio.aau.dk
Main focus lies with the production potential (particularly of those species that grow
heterotrophically) of microalgae and the design of photobioreactors. He also have an
interest in production of phycocyanin, possibly for nutraceutical use.
6. Aarhus University,
Department of Bioscience – Marine Ecology
Annette Bruhn, anbr@dmu.dk
Annette works with the cultivation of algae, primarily green algae for bioremediation
of waste water (municipal as well as agricultural), but also brown algae for production
of biomass for fish feed and energy, as well as bioremediation of coastal waters. In her
group they have previously also cultivated red algae, Chondrus crispus in a project with
the food industry where the carrageenan was evaluated and used as a food ingredient by
CP Kelco.
They have a pilot scale cultivation facility with 12 landbased tanks, and a brown algae
hatchery in which they are able to produce gametophyte culture and seeding lines.They
also hope to start a test facility for cultivation of brown algae with a size of 1-5 ha.
The pilot scale facility currently used to cultivate algae for wastewater remediation
consist of 12 tanks of each 2 m3
.This facility can be used for other purposes than testing
bioremediation.There are two separate lines of each 6 tanks, so that they are able to
compare algal growth on two different types of water – potentially in combination with
two different algal species or biomass densities in a 2*2 set-up with triplicates.The tanks
are supplied with aeration, flow can be modified and temperature, salinity, pH, and
oxygen is monitored online. In addition they will be cultivating brown algae in more
than one hectare of coastal waters the following two seasons in co-operation with the
Danish Shellfish Centre.
• Brownalgae: Testing production of biogas, bioethanol and biobutanol.
• As fishfeed: Directly from the algae, but also from residuals from bioenergy produc-
15

tion since in these the carbohydrates are removed and consequently the proteins are
up-concentrated.The different type of feed will be tested in feeding trials.
• Remediation of coastal waters: the effect will be evaluated according to the N, P, C
and heavy metals harvested in the algal biomass.
Finland
1. Finnish Environment Institute(SYKE) is collaborating in the following projects;
http://mmm.multiedition.fi/syke/envelope/Envelope_4_2010/Envelope_4_2010_Cultivated_algae.php
Cultivated algae may be a future energy source.The Marine Research Centre of the
Finnish Environment Institute (SYKE) is examining the potential use of algal biomass
for energy production.
• Submariner
Lead partner: Maritime Institute in Gdańsk
Submariner is a combined Baltic Sea Region and EU project that intends to provide
the necessary basis for the region to take a proactive approach to improving the future
condition of its marine resources and the economies that depend on them.
With novel technologies and growing knowledge opportunities are provided for new
uses of marine ecosystems, which can be both commercially appealing and environ
mentally friendly.These include macroalgae cultivation, blue biotechnology, innovative
fish and mussel mariculture solutions and wave energy.
• Project ALDIGA
The main goal is to design and validate a new integrated concept of biowaste-to-energy
based on algae and biogas production.The aim is to develop a process requiring minimal
external energy involving efficient utilisation of all sidestreams generated in addition to
the main fuel streams, biodiesel and biomethane. New co-operation models relating to
clean energy including various utilisation of methane, service and utility providers for
biodiesel production, opportunities for industrial waste utilisation for renewable energy
will be proposed and tested.
The Technical Research Centre of Finland, VTT was collaborating in this project
by cultivating algae, analyzing lipid and fatty acid composition, looking at side stream
compounds and doing modeling.
http://www.tekes.fi/u/BioRefine_Yearbook_2011.pdf
• Project ALGIESEL
Algae for biodiesel production.
http://www.aka.fi/en-GB/A/Research-programmes/Ongoing/Susen/Projects/
16

• Project LIPIDO
EU targets are that 10% of the fuel consumed by 2020 should come from biocompon
ents. In producing biomass fuels, it is important to compare production alternatives for
various primary sources of raw materials. In this project the researchers aim at optimiz
ing algal culturing as a source for biodiesel production by looking at how environmental
conditions like light, temperature and nutrient limitation affect growth and lipid yield of
microalgae.
Project partners: Norwegian University of Science and Technology(NTNU),
University of Oslo(UO), Ludwig Maximilian University(LMU) and Icelandic Energy
Research Institute(IERI).
http://www.ymparisto.fi/default.asp?contentid=324867&lan=EN
• Project Carbon Capture and Storage Program
The program objective is to develop CCS-related technologies and concepts, leading
to essential pilots and demonstrations by the end of the program 2014-2015. Com-
mercial applications that promote Finnish CCS innovations will be available from 2020
onwards. A further objective is to create a strong scientific basis for the development
of CCS components, concepts and frameworks, and to establish strong international
networks that enable active international CCS co-operation.
SYKEs part in the program will be to make a preliminary life cycle assessment of
carbon capture using algae.
http://www.ymparisto.fi/default.asp?contentid=398332&lan=fi&clan=en
• Project, cooperation with industry
Neste Oil has launched a joint algae research program with the Marine Research Centre
at Finnish Environment Institute (SYKE).The program is part of Neste Oil’s efforts
aimed at using algae oil as a raw material for producing NExBTL renewable diesel in
the future. Research with SYKE will focus on testing the lipid production capacity of
different types of algae and analyzing how the quality and quantity of these lipids can
be optimized by adjusting the conditions under which algae are grown. Launched this
August(2011), the program will last two years.
http://www.nesteoil.com/default.asp?path=1;41;540;1259;1260;16746;18082
2. VTT Technical Research Centre of Finland
Marilyn Wiebe Marilyn, wiebe@vtt.fi
The current interests at VTT are;
1. Energy: fatty acids as a raw material for renewable/biodiesel. Projects include;
ALGIESEL, N-INNER LIPIDO, Microfuel and ALDIGA.
2. Energy: Volatile fuels and longer chain alkanes, project DirectFuel.
3. High value compounds: secondary metabolites, project MAREX.
17

They work with algae to expand their current expertise in metabolic engineering and
cultivation of micro-organisms and higher plants as cell factories and to expand their
current activities in bioenergy production.
This is done by investigating biodiversity of aquatic organisms and exploiting their
higher specific growth rates compared to higher plants and use metabolic engineering
with several genomes available.
They also look at the possibilities for robust cultivation, including photo-, mixo-,
and heterotrophic options as well as algae’s potential in waste treatment.They have the
ability to engineer strains for new fuel opportunities and improved efficiency and do
screening of known and new strains.
Project MAREX- Exploring Marine Resources for Bioactive Compounds: From
Discovery to Sustainable Production and Industrial Application.
Funded by the EU the project has 19 partners in 13 countries and will run until
2014.The aim is to isolate and characterize new bioactive compounds from organisms
harvested in seas and oceans.
Project DirectFuel- Direct biological conversion of solar energy to volatile hydro
carbon fuels by engineered cyanobacteria. Also funded by EU, and is coordinated by the
University of Turku with the participation of 5 universities and 2 companies as well as
VTT.
Norway
1. Institute of Marine Research (ImR)
With a staff of almost 700 the Institute of Marine Research is Norway’s largest centre
of marine science.Their main task is to provide advice to Norwegian authorities on
aquaculture and the ecosystems of the Barents Sea, the Norwegian Sea, the North Sea
and the Norwegian coastal zone. For this reason, about fifty percent of their activities are
financed by the Ministry of Fisheries and Coastal Affairs.
2. Nofima
The Norwegian Institute of Food, Fishery and Aquaculture (NOFIMA), established in
2008, is Europe’s largest institute for applied research within the fields of fisheries, aqua-
culture and food. Marine Biotechnology is one of their research areas including mole-
cular biology, marine bioprospecting and bioprocessing. Nofima has recently entered
into a strategic research alliance with Alltech, one of the world’s largest animal health
and nutrition companies (http://www.nofima.no/en/nyhet/2012/07/nofima-in-alliance-
with-global-giant). Alltech Algae in Kentucky is one of the world’s largest algae produc-
tion facilities, which’s facility was acquired in 2010 from Martek Bioscience Corporation
for approximately USD 14 million and has been renovated to be one of the largest algae
production sites in the world
(http://www2.alltech.com/india/releases/Pages/Alltech-Algae-Facility-Kentucky.aspx).
18

3. Norwegian University of Technology and Science (NTNU)
Research Projects at Faculty of Natural Sciences and Technology, Department of
Biotechnology related to microalgae:
• BIONA – Biogas Reactor Technology for Norwegian Agriculture (2011-2014)
• Biorefinery Application (2011-2011)
• SOLBIOPTA – Biotechnological Production of Materials for Optimized Solar Cell
Efficiency (2010-2013)
• Promicrobe – Microbes as positive actors for more sustainable aquaculture
(2009-2013)
• Biogas Trøndelag – Microbial methods for design and operation of local biogas
facilities (2009-2010)
• Biological N removal from process waste water of a CO2
capture plant
(2008-2010/-16)
• Lipido – Optimizing Lipid Production by Planktonic Algae (2007-2011)
• Ballast water – Evaluation of methods for treatment of microbes in ballast water
(2005-2009)
• CODTECH – A process oriented approach to intensive production of marine
juveniles with main emphasis on cod (2003-2008)
(http://www.ntnu.edu/web/biotechnology/envbiotek/projects)
Department of Biotechnology
Matilde Chauton, matilde.chauton@biotech.ntnu.no
At the present they have activities including algae within topics such as biofuels
(trigyceride storage/biodiesel) and diatoms in solar cell technology.There is also some
activity on algae as feed.Their focus is mainly on the upstream end (the algal physiology
and ecology aspects) but they also look into the production/upscaling topics.
The work on algae is related to algae as live feed for rotifers or copods, that in turn is
feed for e.g. fish larvae. So indirectly it is fish feed, but they don’t work directly on using
algae in production of fish feed.
Matilde is also involved in SINTEF, matilde.chauton@sintef.no
SINTEF is an independent research organization which consists of several institu-
tes, and at SINTEF Fisheries and aquaculture they work on algae within the vision of
”Technology for a better society”. Some of the main focus areas that involve algae are:
1. Environmental surveys and monitoring (including primary production and water
current transport in mathematical modeling)
2. Harmful algae blooms/analyses of phytoplankton composition in water samples
3. Microalgae as live feed for rotifers/copepods: species selection, chemical composition
of algae and optimization for use as live feed, biomass production
4. Biomass production for high value components: species selection, optimization,
biomass production technology
www.sintef.no/home/Fisheries-and-Aquaculture
www.sintef.no
19

4. SINTEF
SINTEF Fisheries and Aquaculture together with NTNU are representing an unique
competence on marine algae and bacteria and on the application of these organisms
and their special properties in different systems. By bioprospecting, the work to find
organisms and components with positive effects on health and environment.Trine
Galloway (trina.galloway@sintef.no), Jorunn Skjermo (jorunn.skjermo@sintef.no) and Kjell
Inge Reitan (kjell.i.reitan@ntnu.no) have been responsible for scientific research projects
and programs compromising:
• Marine juvenile technology
• Live feed for marine larvae
• Strategies for microbial control
• Marine biotechnology
(http://www.sintef.no/home/Fisheries-and-Aquacul/Marine-Resources-Technology/Marine-
aquaculture/)
NFR Project: Potential of overusing microalgae two partially replace fish oil and fish
meal in aquaculture fish feeds (ALGAFEED).The aim was to characterize production
of lipids and polyunsaturated fatty acids in various microalgae species and at different
conditions. Further to characterize the content of carbohydrates, especially -glucan, in
different microalgae species and at different conditions, the digestibility of micro algae
based feed given to mink (model specie), salmon and cod. Growth effect of micro-algae
based feed given to salmon and cod was also studied. Kjell Inge Reitan
(kjell.i.reitan@ntnu.no).
5. University of Bergen (UiB)
The University of Bergen has supported research in marine science extensively, includ
ing numerous long-term projects. Marine research at UiB covers much more than the
traditional disciplines of marine biology and biotechnology.The quality of the marine
research being conducted at the University of Bergen has achieved international recog-
nition.The close collaboration between industry and university research in aquaculture
provided a textbook example of the potential advantages of such an interaction, and
made Norway a world leader in aquaculture production.
Professor Gjert Knutsen is the initiator of the effort to search for bioactive
substances in algae. He does this work with Professor Svein Rune Erga, dr. Siv Kristin
Prestegard, PhD students, master students and other employees. A total of twenty
people are working with material from the department at the University of Bergen
(UiB). Professor Gjert Knutsen’s over 50 years scientific work includes advanced algal
physiology, lectures and laboratory experiments on algal biotechnology. His work on
microalgae is one of the main references when it comes to marine microalgae knowledge
and experience and is often referred to as ”the Bergen School” in the Norwegian micro-
algae academic network.
20

6. University of Life Sciences (UMB)
UMB is recognised as a leading international centre of knowledge, focused on higher
education and research within environmental- and biosciences. Scientific institutions
such as Aquaculture Protein Center, Bioforsk and Nofima are located at UMB-Ås.
Nofima (former Akvaforsk) has been and is still a significant contributor to the develop-
ment of the aquaculture industry with a special focus on genetics and nutrition aspects.
Several microalgae projects are running at UMB, feed for salmon and cod, immune
stimulants in feed and hydrogen gas production from microalgae.
Department and Plant and Environmental Sciences
Professor Hans R. Gislerød, hans.gislerod@umb.no
Gislerød is professor of plant sciences with a speciality in ”Plant growth in regulated
climate” In year 2000 he was asked working on microalgae, in addition to his ordinary
position, because it was an increasing demand for PUFA to the Norwegian pond fish
industry. In May 2012 we ended one 3 year project with University of Gothenburg and
the Danish Schell Fish Centre for production of Flat Oysters where UMB had the
responsibility for the microalgae FoU. Further we have at the moment one project on
growth of microalgae in waste water together with Biowater and one on production of
Hydrogen together with Bioforsk. In this project we are also looking on use of flue gas
from some industry plants. On these projects we have engaged one researcher in a 50%
position three PhD students, where one is on a Fulbright grant for one year from
University of South Florida and one technician. At the moment we are working on
establishing a commercial microalgae production with a greenhouse grower.
Department of Animal and Aquacultural Sciences
Aquaculture Protein Centre (APC)
APC became one of the first Norwegian Centres of Excellence. APC consists of scien-
tists from the Norwegian School of Veterinary Science (NVH), the Norwegian Uni-
versity of Life Sciences (UMB) and Nofima. Professor Margreth Øverland margareth.
overland@umb.no. Margreth Øverland is a professor in animal nutrition whos interest
in microalgae is as an alternative source of omega-3 and protein for fish feed. She have
been working with chemical profiling of different microalgae as well as evaluating
digestibility of these using both mink as a model animal for fish as well as in Atlantic
salmon. She also has interest in looking into processing methods to improve nutrient
value of these microalgae and processing techniques to make optimal extruded feed
based on these novel ingredients. Furthermore, she plans on evaluating these algae in
growth performance trials with salmon, rainbow trout and possibly tilapia. She also has
evaluated health beneficial effects of bioactive components present in the microalgae.
(http://apc.umb.no/english/).
Bente Ruyter, bente.ruyter@nofima.no is responsible for experiments to find out however
fatty acids in certain microalgae are suitable to replace fish oil in feed for salmonids at
21

the Aquaculture Protein Centre (APC) and Nofima’s research station at Sunndalsøra in
Norway
(http://www.nofima.no/en/nyhet/2011/10/tries-out-microalgae-as-fish-oil-replacement-in-
salmon-feed).
Bioforsk
Bioforsk conducts applied and specifically targeted research linked to multifunctional
agriculture and rural development, plant sciences, environmental protection and natural
resource management. International collaboration is given high priority. Kari Skjånes
(kari.skjanes@bioforsk.no) and Thorsten Heidorn (thorstein.heidorn@bioforsk.no), are work
ing on the use of algae technology for production of biohydrogen from green micro
algae. Céline Rebours (celine.rebours@bioforsk.no) has isolated coldwater microalgae more
suitable for hatchery, nursery and on growing for sea urchins and carnivorous fish.
7. University of Oslo (UiO)
Norwegian Institute for Water Research (NIVA) was founded in 1958, and Professor
Olav M. Skulberg, a Norwegian botanist with freshwater algae as specialty, has been
employee since the institution’s inception. Early, after ended studies in Switzerland,
he developed a method for testing bio-available plant nutrients and toxicity in water,
based on algal cultures – this method has been utilized in many countries. He built up
a collection of algal cultures at NIVA, which has been used in teaching and research,
and in our time have formed the basis for molecular biological research of internatio-
nal interest, particularly in evolutionary biology and toxic algae. Skulberg has authored
numerous scientific papers, mainly on algae and their importance in lakes and rivers and
his work on microalgae is one of the main references when it comes to microalgae and
cyanobacteria knowledge and experience. He is often referred to as ”the Oslo School” in
the Norwegian microalgae academic network.
8. University of Stavanger
Professor Simon Geir Møller has been an independent investigator and research group
leader since 2001 (at the University of Leicester, UK) with over 15 years personal re-
search experience in plastid biology and plastid genetic engineering. At the University of
Stavanger and Centre for Organelle Research (CORE) Professor Møller and his labora-
tory have extensive expertise in plastid biology with emphasis on plastid transformation,
Fe-S cluster biogenesis and plastid division.The group has attracted research funding of
over 19 MNOK from NRC, BBSRC, UFD,The Leverhulme Trust and EMBO;
6.2 MNOK of which towards the Plastid AS project.
Since setting up Plastid AS, the team are continuing research into plastid transfor-
mation technologies and applications. Current research projects include Norwegian
Research Council and own funding within the FUGE (functional genomics) program
in fish vaccines and crop research. A key focus area is the production of previously
impossible malaria proteins for screening programs (http://www.plastid.no/index.html).
22

9. University of Tromsø (UiT)
MabCent (Centre for Marine Bioprospecting) is a centre for research-based innova-
tion (SFI) which aim to develop high value marine bioactives and drug discovery based
on the screening of extracts from marine organisms in the arctic environment.The
combination of low temperatures and other special conditions creates a special marine
environment where evolution has brought a lot of life in other directions compared to
others. Many organisms have evolved unique characteristics, leading to the possibility of
finding bioactive substances with effects.One of the focused items is the ”artic rubisco
enzyme” found in cold water algae and which seem to have an higher CO2
absorption
in comparison with microalgae from warmer waters.The scheme promotes innovation
by supporting long-term research through close cooperation between R&D intensive
companies and prominent research institutions. Business partners are Lytix Biopharma
AS, Biotec Pharmacon ASA, Pronova Biocare AS and ABC Bioscience AS.The budget
is approx. NOK 180 million over eight years. For more information contact:
Professor Trond E. Jørgensen (trond.jorgensen@uit.no), Professor Hans Chr. Eilertsen
(hans.c.eilertsen@uit.no) or Elin Fredriksen (elin.fredriksen@uit.no) at Department of
Arctic and Marine Biology, UiT.
Sweden
1. Chalmers University of Technology, Göteborg
The Department of Chemical and Biological Engineering
Eva Albers, albers@chalmers.se
Researcher in industrial biotechnology. Has for the last five years build up a group
working on algal biotechology that is part of the group of Industrial Biotechnology.
Her main research interest is to study metabolism and microbial physiology at all levels
for different production organisms, mainly algae and yeast, during standard laboratory
conditions as well as conditions relevant for industrial processes.This is achieved by
applying a wide range of approaches from classical microbial and biochemical to systems
biology and mathematical modeling and collaborations with several researchers at other
universities and research institutes.
Ingrid Undeland, undeland@chalmers.se
Has for the last three years coordinated a Safefoodera-project,”Biotransport” with
collaborators on Iceland and the University of Ljubljana in Slovenia.
Studied the activity in various marine ingredients from ”source to active site”.The
ingrediants have been fish-oil, proteinhydrolysate from cod and various extracts from
bladderwrack.
The latter have been studied from their anti-oxidative properties in a food-model
system simulating a fish-product, in an in-vitro anti-oxidating assay and in various
cellmodels(caco-2 cells, yeast, livercells).
23

They found that some extracts from bladderwrack had strong anti-oxidating
properties.
Supervisor of PhD-student Lillie Cavonius.
Lillie Cavonius
A PhD-student working on n-3 fatty acids in microalgae.The project she is involved
in aims to find new, environmentally friendly extraction methods.
As a part of her research she analyze the fatty acid pattern of microalgae (the method
could most likely be applied to macroalgae, too).The aims are to get methods for
getting oil out of algae, since extraction with hexane needs to be replaced with
something more sustainable and environmentally friendly. Recently, she has also begun
to apply microscopy techniques (CARS, third harmonic generation) to the microalgae.
Perhaps in the future, the intracellular lipid accumulation can be observed in live cells
with these techniques.
Jenny Veide Vilg, jenny.vilg@chalmers.se
Postdoctoral researcher.
The harvesting step has become an important bottleneck in the production of bio-
mass from microalgae, due to the needs for energy-demanding methods for separation
of algae from the surrounding water. Flocculation has been described as a putatively
efficient means of coarse separation of the algae, but the mechanisms are poorly known
and thus, the flocculation becomes unpredictable. My main research in the subgroup of
algal biotechnology (lead by Eva Albers) focuses on the molecular mechanisms behind
flocculation of marine microalgae, for putative novel solutions of microalgal harvesting.
We are currently aiming to investigate extracellular proteins and cell wall proteins
involved in flocculation.
She is also involved in the start-up of a project on macroalgae culturing, with the aim
to produce biomass for industrial applications.
2. KTH, Royal Institute of Technology
Joseph Santhi Pechsiri, pechsiri@kth.se
Supervisor: Fredrik Gröndahl
Works with microalgae and cyanobacteria, perform assessments often at a systems
level on environmental, technical, social, and economical issues.
The project aims to perform sustainability assessment of microalgae/cyanobacteria
biomanipulative utilization.They look at the potential to use these systems to absorb
or concentrate human impacts for further management such that the system acts as a
buffer between human impacts and the natural environment while at the same time
providing an ecological service in the form of resource provisioning. In order to assess
this, they chose the biofuel production system (biogas and biodiesel) from microalgae
and cyanobacteria harvests and performs various assessments for potentials on them.
24

Josefine Anfelt, Paul Hudson, Mathias Uhlén, Björn Renberg
An increased awareness of the negative environmental impact of greenhouse gases, as
well as a need to reduce dependency on fossil fuels, has led to renewed interest in bio
fuels, or fuels produced from microorganisms. A particularly attractive fuel is biobutanol.
Butanol has a higher energy content than ethanol, is less hygroscopic, and is compatible
with current fuel infrastructure.They aim to introduce a 1-butanol synthesis pathway
in the cyanobacterium Synechocystis sp. PCC 6803.This phototrophic organism is a
preferred host for biofuel production because it requires only CO2
from the surrounding
atmosphere as a carbon source and its prokaryotic nature simplifies genetic modification.
Additionally, Synechocystis sp. PCC 6803 naturally produces a butyrate-based polymer
in high yields from acetyl CoA. By knocking out a key enzyme in this native pathway
and inserting three heterologous enzymes, we will redirect the flux toward 1-butanol
synthesis.The heterologous enzymes are encoded on a self-replicating plasmid.The
1-butanol is quantified from culture media using gas chromatography.
3. Linnaeus University
Catherine Legrand, catherine.legrand@lnu.se
The MPEA (Marine Phytoplankton Ecology and Applications) is based within
the School of Natural Sciences at Linnaeus University in Kalmar.Their research team
deals with marine phytoplankton ecology and the role of bio- and chemical interactions
among marine microbes in shaping plankton food webs. Another part of the research
deals with phytoplankton products with a potential economical impact in e.g. renewable
energy resources and food science.
• Algal metabolites (production, interactions with microbial communities)
• Algal productivity (seasonal variation, lipid and fatty acids profiles, scaling up,
integration of waste water recycling and industrial fluegas)
• Potential use of algae for bioenergy (biogas, biodiesels)
• Integration of algal farming in urban landscape
4. Mälardalen University
Emma Nehrenheim, emma.nehrenheim@mdh.se
Research interest are within: Nutrient and carbon transformations in algae cultivation
for biogas digestions pusposes. Recycling to arable land.
5. Nordic Microalgae, www.nordicmicroalgae.org
SMHI, Malin Mohlin, malin.mohlin@smhi.se
The website is a source of information on microalgae and related organisms in the
Nordic area, i.e. the Baltic Sea, the North East Atlantic and lakes, rivers and streams
in the area.This site is of use for science, education, environmental monitoring etc.The
content of the site is mainly supplied by the users.The site provides, among others, a
forum in which questions regarding microalgae and speciation can be posted.
25

6. SP Borås
At SP they do research within and develop among others;
• New cultivation facilities
• Develop sensor-techniques to control large algae-facilities
• Harvesting techniques and refining
• Try out different species
• Design biofuels based on algae
• New materials from algae
• Chemicals from algae
SP have two focuses for the algal biomass, which are special chemicals and biofuel.They
can also offer full characterisation of algal biomass through their well equipped labs.
They culture algae on different scales, from 2-5L in the lab, 2500 L in outdoor facili-
ties and plan to build two larger raceways at a pulp mill covering 500 m2
.
They have two outdoor facilities at the moment but plan to expand to 20. Sensors are
used to control the facilities when they are scaled up.Today you can get high produc-
tion in the lab which decreases markedly when scaled up outdoors.The algae will have
an abundance of nutrients initially, which will decrease with high cell densities to make
them produce fat.
Without this control of the biomass, the productivity will be very low.The sensors are
so called optical noses and tongues (own technique/several publications yearly) which
controls pH, O2
, nutrients and growth using light-signals.
They currently work with 16 species of algae, 10 freshwater and 6 marine of which
some will be used in the larger facilities.
They have not yet produced biofuel but have developed a patented and partly tested
new diesel designed for algae, which has unique properties.
They also produce algal pellets.
7. Swedish University of Agricultural Sciences, Umeå
Francesco Gentili, francesco.gentili@slu.se
Culture algae in various effluents(municipal and industrial) to:
• Purify the water
• Reduce the emission of carbon dioxide, by bubbling gases through an algae culture
• Produce valuable biomass
They culture their algae both in a lab and a combined heat and powerplant they built on
their roof.
8. Uppsala University
Department of Photochemistry & Molecular Science.
Peter Lindblad, peter.lindblad@fotomol.uu.se
Works with conversion of solar energy into a biofuel, focusing on microalgal based
H2
-production/hydrogenases at applied, physiological, biochemical and molecular levels.
26

Different molecular and genetic techniques are used to address transcriptional regulation
and regulatory mechanisms. In the last year he and his research group has developed a
strong interest for synthetic biology and the possibilities to custom design and engineer
microbial cells to carry out novel pathways and functions. Subsequent activities include
proteomic and metabolomics (systems biology) analyses of the constructed cells, fol-
lowed by further (re)design and re-engineering.
2C. Microalgae Cultivation as Feed in Aquaculture
(Several Marine Fry and Bivalve Hatcheries)
A significant contribution to the emerging knowledge and experience on microalgae
cultivation may be addressed to the focus on bringing in new marine species (halibut,
turbot, sea bass, sea bream, cod, crustaceans and bivalves) to the aquaculture industry.
Microalgae are used in both the production and enrichment of live feed (rotifers,
Artemia etc) and directly to the larvae as ”green water”. Proper use of microalgae in the
first feeding stage contributes to an improved survival, growth and quality of fry produc-
tion.
Microalgae enhances the microbial environment, contributes to immune stimulants,
stabilize the nutritional value of live food and stimulate the digestive process in fish
larvae. Proper use of microalgae provides a safer production.
The microalgae production has been limited to a few species such as: Chlorella sp,
Isochrysis galbana, Pavlova lutheri, Nannochloropsis oculata and N. gaditana, Dunaliella
tertiolecta and Tetraselmis suecica.These species have been selected on the basis of their
size, nutritional value, culture easiness and absence of negative side effects, such as
toxicity.Their nutritional value shows a great variability not only among different
species, but also in genetically different populations of the same species (strains).
Microalgae for halibut and turbot reproduction dominated the 80-ties and 90-ties
while cod, scallop and oyster reproduction have been the main species later on. Cod
farming industry was growing until its collapse in 2009 and there were about 24 small
and medium size cod hatcheries consuming around 90 thousands liters of Chlorella sp
and about 3 thousands liters of Nannochloropsis oculata on its peak. During the 80-ties
and 90-ties, while halibut was focused as new specie, every hatchery had their own
microalgae department producing the necessary biomass.
The cod farming industry had a higher microalgae biomass requirement and tended
to import frozen and live biomass from Asia (Chlorella sp) and USA (Nannochloropsis
oculata).This turned out to be a business in which a Norwegian company MicroAlgae
AS started to trade imported algae biomass into the cod hatcheries (http://www.micro
algae.no/). Other companies, such as Algaetech Industries AS and MicroA AS, started
to plan production of wet, live biomass to supply the growing cod farming industry.
After the collapse in 2009, there were only about 3 or 4 cod hatcheries left. University
of Bergen and the Institute of Marine Research together with the Norwegian University
27

of Science and Technology and SINTEF as well as University of Tromsø and University
of Life Sciences and NOFIMA have been the main contributors of the mass production
of microalgae knowledge and experience in the Norwegian aquaculture.
2D. Industrial Microalgal Activity in the Nordic Countries
1. AstaReal AB (former BioReal AB)
Åke Lignell, ake.lignell@astareal.se
The company was founded 25 years ago in Uppsala and is today owned by Fuji
Chemical Industry CO, Japan. AstaReal is a research based biotech company, dedicated
to the production, research and marketing of natural astaxanthin.They were the first to
produce natural astaxanthin commercially from the microalgae Haematococcus
pluviailis.They have developed a unique cultivation method to yield the highest and
purest form available of natural astaxanthin and offer both bulk ingredients for use in
feed, food and dietary supplements and retail products based on natural astaxanthin.
www.bioreal.se
2. Algalif AS
This a Norwegian company planning large scale microalgae production in Norway and
Iceland.They combine their experience on horticultural light (Gavita AS) with the
development of photobioreactor (PBR) technology. www.algalif.com
3. Algro Freberg
Arnstein Freberg established a pilot PBR production in a greenhouse in Lena in
Oppland county in order to run R&D tasks.This establishment is based on his expe-
rience from microalgae biomass production studies in the vertical tubular PBR Biofence
system at the University of Life Sciences (UMB) together with prof. Hans R. Gislerød.
4. BM Energy Group and AstaNovo AS
BM Energy Group and AstaNovo AS have been focusing in large scale production of
Haematococcus pluviailis, however, today they have turned the focus on algal EPA and
DHA production. http://www.bmeg.no/index.html and http://www.astanovo.com/)
5. CO2
BIO
CO2
BIO is an innovation network of participants from industry and research.The
network is organized as a company where Salmon Group, Grieg Seafood, EWOS, BTO
and NHIL are shareholders. CO2
BIO AS was established in 2011.The company’s
objective is to develop new profitable business on the basis of available CO2
capture
at Mongstad.The first goal to establish a national pilot plant for the production of
Omega-3 rich algae biomass and to conduct research projects in order to develop the
entire value chain.The experience from the pilot phase may trigger the creation of large-
28

scale production at Mongstad.The pilot plant is scheduled for completion in 2013, the
estimated cost is probably 11 mill. http://co2bio.no/
6. MicroA AS
MicroA was established in 2007 by local entrepreneurs and investors with the purpose
of producing “microalgaepaste” (lived feed) for the cod juveniles farming industry in
Norway. MicroA decided to end this project in 2009 due to the market collapse.The
MicroA’s previous patented photobioreactor was quite small (60-70 litre volume) and
had technical limitations with regard to scalability.This project gave MicroA valuable
experience in cultivation and harvesting of microalgae and led to the best “algae match”
for rotifer production. MicroA made a new invention in 2009 showing promising results
with regards to scaling up algae production. Administration and laboratory facilities are
located in Tananger and temporary greenhouse is installed at Sola. www.microa.no
7. Promar AS
Promar AS was established in year 2000 to pursue Intravision’s research on a production
technology for microalgae. Using narrow bandwidth light in a reactor designed for
efficient light transfer and optimal growth conditions, Promar AS will deliver micro
algae-based high value compounds to a variety of market segments.
http://www.intravision.no/pages/promar_about.asp?nr=59).
8. Simris Alg
Simris Alg AB is a Swedish company establishing a large scale greenhouse plant for
microalgae cultivation from which they intend to develop unique health products, food
and feed supplements.The company is located in sunny and marine area at Hammenhög
Österlen.
http://simrisalg.se
The photo shows the projected greenhouse installation at the Hammenhög Frö’s facilities.The algae facilities will
consist of 2000 square meter greenhouse and the warehouse of another 700 square meters will house new
laboratory. Products from the algae facility, such as omega-3, are predicted to be available from 2013.
29

9. Statoil
Børre Tore Børresen, btbo@statoil.com
Microalgae: Cultivation and processing of wild grown algae, typically algae which grow
attached to surfaces. Collaboration with US partners, like College of William and Mary
and Virginia Institute of Marine Sciences and University of Arkansas.
Macroalgae: Exploitation of the use of seaweed as a feedstock for biofuel production.
Collaboration with Bio Architecture labs (US).
2E. Industrial Microalgal Activity Operating Outside Nordic
Countries
1. MicroAlgae AS
MicroAlgae is specialized in the supply of live and frozen microalgae biomass and
technical equipment to the fish farming industry and represents Reed Mariculture, YSI
and Aquatic Ecosystems Inc in Norway. After the collapse of the cod farming industry
they turned to be a supplier of equipment and instruments concerning water quality and
oxygenation.
http://www.microalgae.no/
2. Sahara Forest Project
The Sahara Forest Project has a vision of creating re-vegetation and green jobs through
profitable production of food, water, clean electricity and biomass in desert areas.This
is done by combining already existing and proven environmental technologies, such as
evaporation of seawater to create cooling and distilled fresh water (i.e. in a saltwater
based greenhouse) and solar thermal technologies. In this way The Sahara Forest Project
is designed to utilize what we have enough of to produce what we need more of, using
deserts, saltwater and CO2
to produce food, water and energy.
http://saharaforestproject.com/ and http://bellona.no/
30

This diversity makes microalgae a potentially rich source of a vast array of chemical
products with applications in the feed, food, cosmetic, pharmaceutical and even fuel
industries. Microalgae can either be autotrophic or heterotrophic; the former require
only inorganic compounds such as CO2
, salts and a light energy source for growth;
while the latter are non-photosynthetic therefore require an external source of organic
compounds as well as nutrients as an energy source. Some photosynthetic microalgae
are mixotrophic, i.e. they have the ability to both perform photosynthesis and acquire
exogenous organic nutrients.
Algal cultures consist of a single or several specific strains optimized for producing
the desired product. Out of an estimated number of 50.000 microalgae species, only 10
are commercially produced at the moment (Spirulina, Crypthecodinium cohnii,
Chlorella, Dunaliella salina, Ulkenia sp., Haematococcus pluvialis, Schizochytrium,
Aphanizomenon flos-aquae, Euglena and Odontella aurita). In terms of volume, the
three species Chlorella, Spirulina and Cryptecodinium are contributing to the
biggest volumes.They are used as a whole without transformation or are used to produce
extracts of interest. About half of microalgae productions are dedicated to products with
whole microalgae and the other half to production of extracts.The estimated market
value is about 600 million Euro in 2010.
Three main extracts come from microalgae: carotenoids, phycobiliproteins and anti-
oxidants. Main microalgae market applications are: human (74%) and animal nutrition
(25%), cosmetics and research.
There are more than 400 players involved in the microalgae business or in microalgae
research and development, according to CBDM.T Market and Business Intelligence
analysis. Approximately 75.2% of them are public or private companies and 18.6% are
R&D institutions. Due to dynamic financing of companies dedicated to 3rd genera-
tion biofuel (biofuel from microalgae) and to the development of genetic engineering
technologies, this number is expecting to grow steadily.
The microalgae market is very dynamic.The vitamin producer DSM acquired the
algae extracted omega-3-fatty acid DHA producer Martek Bioscience for US $1 billion.
Algatechnologies in Israel, the leading producer of natural astaxanthin for nutraceuti-
cals and food applications, has announced it is expanding the production capacity of its
AstaPure™ brand. Solazyme has made a joint venture with Sephora cosmetics and also
3. Global Microalgae Market Segments
and Potentials
32

taxon product application
Estimated
production t/a
Chlorellavulgaris Biomass extracts
Health food, food sup
plement, feed, cosmetics
2000
Spirulina platensis
Phycocyanin biomass,
extracts
Health food, functional
food
3000
Dunaliella salina
Carotenoids,
-carotene
Health food, food sup
plement, feed, cosmetics
1200
Nostoc fusiforme Biomass Health food 600
Aphanizomenon flos-aquae Biomass Health food 500
Haematococcus pluvialis
Carotenoids
astaxanthin
Pharmaceuticals feed
additives, aquaculture
50
Odontella aurita EPA, biomass Cosmetics, food 20
Schizochytrium DHA Baby food
Ulkenia DHA Baby food
Sceletenoma Life biomass Aquaculture
Nitzschia/ Navicula Life biomass Aquaculture
Isochrysis galbana Life biomass,fatty acids
Aquaculture, animal
nutrition
Nannochloropsis Life biomass Aquaculture
a joint venture with Roquette, a French family group enterprise producing microalgae
in huge closed photobioreactors inside greenhouses in Klötze, Germany. Avesthagen
Ltd, India’s leading integrated healthcare company, has patented a vegetarian DHA
(AvestaDHA™) developed from the microalgae Schizochytrium limacinum SC-1 strain
found in the Indian Ocean.They have started the commercial production of superior
quality of 100% vegetarian DHA and will address the global market needs of DHA
which is growing substantially.
Table:After Pulz 2009.
33
Global Microalgae Production

Animal nutrition market is also very dynamic. Alltech, one of the global leaders in the
animal health and nutrition industry, acquired the Martek algae facilities in 2010 for
$14 million and since then renovated these production facilities to be one of the largest
algae production sites in the world. Alltech Algae is now going to produce 3rd genera-
tion biodiesel from microalgae and some animal nutrition ingredients and human
nutrition ingredients as well.
The main market driver at the moment is the switch from chemical to natural
ingredients. Examples of this are the increasing production of natural astaxanthin
compared to the earlier total dominans of chemical astaxanthin from DSM (former
Hoffmann LaRoche) and Nestle’s promotion on phycocyanin from Spirulina in the
video ”Blue smarties commercial”.
There are four main application segments under development: energy, biogas, envi-
ronmental applications and pharmacy. More than 70 companies are working on energy
which mainly are at R&D stage, and consequently there are not really a market yet. Big
investments have been done, about $1.5 billion until 2008.
Country Company Alga Product Effects on
USA Martek Crypthecodinium DHA Brain development
Israel Algatechnologies Haematococcus Astaxanthin Immune system
Canada Oceannutrition Chlorella Carbohydrate Extract Immune system
Germany Salata Cyanos Cosmetic ingredients Skin health
France Dior Odontella EPA Anti-inflammatoric
Austria Panmol/Madaus Spirulina Vit. B12 Immune system
Germany Nutrinova Uklaria DHA
Brain, heart, mental
disorder
USA Gates Foundation Kappaphycus Carrageenan Anti-HIV, biocide
USA R&D Lobophora Macrolides Anti-fungal
UK BSV Rhodophyta Biomass
Irritable Bowel S.
Candidiasis
Denmark Danisco Macroalga
HOX (Hexose
Oxidase)
Antioxidant
34
Recent Development in Health Product Ingredient

product US $ kg-1
Market size
US $ *106
biomass Health food 10 - 80 1. 100
Functional food 25 – 52 Growing
Feed additive 10 – 130 Fast growing
Aquaculture 50 – 150 Fast growing
Soil conditioner >10 Promising
pigments Astaxanthin 2.500 – 8.000 >250
antioxidants Beta-carotene >750 >25
Superoxide dismutase >1.000 Promising
Tocopherol 30 – 40 Stagnant
AO-extract 20 – 45 12 – 20
ARA 50
EPA 300
DHA 250
PUFA-extracts 30 – 80 10
Special products Toxins 1 – 3
Isotopes >5
Sapphire Energy’s Green Crude Farm in Luna County, New Mexico, was recently com-
pleted. Construction of the first phase, consisting of 48 small 4.450 square meter ponds
and 20 big 8.900 square meter ponds, which began on June 1, 2011, was completed on
time and on budget.The farm has already produced 81 tons of algae biomass to date.The
complete farm will consist of about 121 ha (1.21 million square meters) including algae
cultivation ponds and processing facilities and producing about 100 barrels of oil per day
in 2014 and 6.700 barrels per day in 2018, according to Sapphire Energy.The company
has raised totally $300 million in private and public funds in which includes investors as
Bill Gates.
35
Marked Estimation for Microalgal Products

Figure: Left photo shows the aerial view of the farm in August 2012. Due to traditional crop rotation, only half of the small ponds and one
of the big ponds are producing.The right photo shows the crude biomass. Photos: Sapphire Energy.
Figure:Aurora Algae ponds in Karratha,Australia.
http://www.algaeindustrymagazine.com/aurora-algaes-matt-caspari-on-growing-algae-in-australia/
36

The former director and main scientist of Sapphire Energy Inc., Miguel Olaizola, now
director of Production R&D in Synthetic Genomics, says that the impact of the huge
quantities of feed ingredients as residues from their biofuel production when coming
into the animal feed market, will significantly affect the animal feed prices. He is cur-
rently responsible for scaling up of algal production for biofuel, food and feed applica-
tions in the company.
Aurora Algae has opened its demonstration scale project in Karratha, Western
Australia.The farm is consisting of 6 ponds, 0.4 ha each one where they consistently
are producing 12 to 15 metric tons of algal biomass per month. A full-scale commer-
cial facility in nearby Maitland is planned for 2014 which initially will consist of more
than 100 ha of algae ponds, capable of producing up to 600 metric tons of biomass per
month, and scalable to more than 2.000 ha. Aurora Algae produce the omega-3-fatty
acid EPA from the microalgae Nannochloropsis sp.
Anaerobic digestion of algae biomass to produce biogas is an alternative to lipid
extraction for transportation fuel. Waste-grown microalgae are a potentially important
biomass for biofuel and biogas production but this is still at R&D stage. Environmen-
tal applications such as CO2
capture, waste water treatment and soil detoxification and
improvement is also at R&D stage. But pharmacy product applications are entering
the market.The biopharmaceutical company Algenics SAS in Nantes, France is using a
microalgae-based technology to produce recombinant therapeutics for animal and
human health.They are producing glycosylated therapeutics with preferential applica-
tions in the field of monoclonal antibodies and viral subunits.
There are some companies dedicated to screen the diversity to IPI so active pharma-
ceutical ingredients and also other ingredients for instant cosmetically ingredients can
be encountered.
Fresh or Frozen Algae Biomass
There is a new trend on new immune health functional food products, particularly pro-
biotics.The fresh or frozen biomass could sort under this market. According to market
Taxon Main active agent Indication area Phase of clinical trial
Lyngbya majuscula
(Bluegreen alga)
Curacin Cancer II
Nostoc sp. (Bluegreen alga) Cryptophycin Cancer I
Prorocentrum lima
(Dinoflagellate)
Ocadaic acid Cancer II
Alexandrium sp. (dinoflagellate) Saxitoxin Analgesy I / II
37
Pharmaceutical Ingredients from Microalgae

researcher Packaged Facts, the global retail market for probiotic and prebiotic foods
and beverages was US $15 billion in 2008, a 13% increase over 2007, with an estimated
market of more than US $22 billion by 2013.
The global nutraceuticals market is estimated at about US $151 billion in 2011. By
2016, it is estimated to reach nearly US $207 billion, a projected compound annual
growth rate (CAGR) of 6.5% between 2011 and 2016. Functional beverages market is
expected to experience the highest growth, at a compound annual growth rate (CAGR)
of 8.8% during the 5-year period from 2011 to 2016. Nutraceutical food market is the
second largest market, generating an estimated US $49 billion in 2011.This should
reach US $67 billion in 2016, for a CAGR of 6.4%.
Algae Oil and Omega-3 Fatty Acids
Traditionally, omega-3 oils have been extracted from wild caught fish, but algae are the
originating source of EPA and DHA in fish and krill, which obtain these fatty acids by
eating algae.The total costs of producing omega-3 fatty acids from microalgae are higher
compared to fish, simply due to the cultivation costs and the harvest costs of the low
density microalgae biomass from the cultivation medium.The availability of algal oil is
still very restricted and, so far, the retail market is more relevant than the bulk market.
The retail market pays a higher price for algal omega-3 since it is a vegetable source and
has not been in contact with industrial pollution.
38
World Fish Oil Production and Use
Figure:After MareLife algae seminar. Source: Ewos innovation, production: FAO.

Actually, there is moreover a lack of omega-3 products in the market than a real com-
petition.The global omega-3 market’s increasing demand is leading to depleting of fish
stocks and cultivated microalgae biomass is expected to be one of the future sources of
omega-3.The market for omega-3 ingredients have been growing between 10 and 18
per cent across different regions in the globe, and marine source omega-3 ingredients
contribute to 90% of the estimated revenues of US $1.5 billion globally in 2010.
Replacing fish oil (approx. 1 million tons a year) by algal products completely would
require an annual production of 2.5-3.5 million tons of algae. Europe is expected to
show a greater acceptance of algal oils in the near future and grows faster than North
America, where algal oils are well established. Globally, the average price of algae
omega-3 oil is US $140 per kilo. According to data from the International Fishmeal and
Fish Oil Organization (IFFO), the price of fish oil rose from US $800 per metric ton in
February 2007 to US $2.200 per metric ton in February 2008.This fish oil price follows
the vegetable oil prices and this explains why there was a peak in 2008.
International market price for fish oil and fish meal (monthly average, 64/65% crude protein), any origin, wholesale,
CIF Hamburg (US $ per tonne: Helga Josupeit, FAO, GLOBEFISH Database – personal communication, May 2008)
http://www.sciencedirect.com/science/article/pii/S004484860800567X
Fish oil prices averaged US $1.696 (€1.212) per metric ton between January and March
2011 – double the value from a year ago, Corporación Pesquera Inca (Copeinca) said
in its annual report.The spike was biggest for oil destined for human consumption,
with contain higher levels of omega-3.There, prices have reached levels of US $2.200
(€1.572) per metric ton, Copeinca CEO Samuel Dyer Coriat told IntraFish.This is
due to a shortage of supply of this type of oil, he said. However, the picture is different
when it comes to fish oil for aquaculture.There, prices have fallen to around US $1.200
(€857.6) per metric ton, Dyer Coriat said. Austevoll, the Norwegian fishing group with
activities in Chile and Peru, also said fish oil prices had fallen after the heights reached
earlier this year. “After a rising trend in the first part of the quarter, fish oil prices have
now fallen slightly as expected,” Austevoll said in its quarterly report. Capsules of
39
International Market Price for Fish Oil and Fish Meal

omega-3 EPA/Capsules of omega-3 EPA/DHA from fish oil are available at internet
for US $350-875 per kg while capsules of omega-3 EPA/DHA from algae oil are
available at internet for US $1.900-2.500 per kg.
Present worldwide annual demand for eicosapentaenoic acid (EPA) is claimed to be
about 300 metric tons production from Phaeodactylum cornutum, which contains about
2% eicosapentaenoic acid would require production from 15.000 t of algal biomass.The
DSM owned company Martek produce the omega-3 fatty acid DHA from hetero
trophic cultured algae Schizochytrium. Martek had a net sale of US $450 million in
2010 and just US $17.05 million were sales to food and beverage customers.The main
part was sold to the infant formula makers and dietary supplements trade.
The Martek IPI on DHA from microalgae has prevented other companies to enter
this business, such as the Swiss chemical group Lonza which aquired the Nutrinova’s
DHA business in 2005, was forbidden from selling any products that infringes Martek’s
omega-3 patents. Nevertheless, Martek’s patent protection on its algae-based DHA for
infant formula began to expire in 2011 and virtually runs out in 2014, both in Europe
and in the U.S
Many players waiting to enter the market for algal omega-3 Ingredients, have based
their hopes on Martek’s patent portfolio expiry, but technology has been the driving
force that kept Martek competitive as an omega-3 Ingredient manufacturer. DSM’s ex-
pertise in the field of nutritional ingredients, their positioning as a single stop supplier of
key functional ingredients and greater ability to offer technical support are advantages that
clients will consider when signing on. While Martek derives only around $83 million as
a Food & Beverage Ingredient from omega-3 in North America, Pronova Biopharma,
the largest company in this space in NA, got approximately $175 million in revenues
from omega-3 Ingredients. Most companies are pure play omega-3 manufacturers, even
though they operate across many application segments, but Cognis (BASF) and Martek
(DSM) are currently the only two companies which have the significant backing of
global ingredient players. While Cognis has only marine source omega-3, Martek adds
to DSM’s existing vegetable and marine source omega-3 Ingredients. With the acquisi-
tions, Cognis & Martek have gained significant increase in access to markets and R&D
focus that could push smaller players out of the market for omega-3 Ingredients.
Region
Marine %
Revenue
algal %
Revenue
growth total %
Revenue
growth marine %
Revenue
growth algal %
Revenue
NA 85% 15% 13.9 13.4 11.5
EU 93% 7% 10.2 9.7 16.5
APAC 90% 10% 18.2 17.6 16.5
Table: Growth patterns snapshots of marine and algal omega-3 ingredients in different regions of the world in 2010.
40
Marine and Algal Omega-3 Ingredients in Different Regions

However, new algal players are entering the market - among them, Algae Biosciences
Inc. (Scottsdale, AZ), Aurora Algae Inc. (Hayward, CA), Lonza (Allendale, NJ), and
Source-Omega LLC (Chapel Hill, NC). Suppliers differ in many ways, including their
algal strains, subsequent fatty acid profiles, and growing processes.
Unlike the heterotrophic process of growing microalgae as Martek does, BioProcess
Algae cultivates algae via autotrophic process in biofilms exposed to light and uses waste
heat and carbon dioxide from ethanol factory. (http://www.bioprocessalgae.com)
Bioprocess Algae’s Attached Growth system in Shenandoah, Iowa
http://www.algaeindustrymagazine.com/aim-interview-bioprocess-algae-ceo-tim-burns/
The omega-3 ingredient market from algae is estimated to $300 million.
Future recommended dietary reference intakes or recommended daily intakes of
omega-3 LC-PUFA for the general population could average 650 mg per day per capita.
For the total US population of more than 281 million, the above recommendation
would require about 222.556 ton per year of FGFO, equivalent to about 296.741 ton per
year of CFO (Crude Fish Oil). If the entire global population of about 7 billion should
follow these recommendations, there will be a need of 7.39 tons of CFO or more than
7 times of today’s production.
41

-glucans
The global -glucan market is emerging and still limited today, as -glucan have only
been marketed as specific ingredients for 10 or 15 years. However it has great potential,
and is likely to grow in the future, especially as far as animal food industry is concerned.
Since -glucan from marine diatoms is indicated to be a strong BMR, and will compete
against -glucan from baker’s yeast in the nutraceutical and pharmaceutical market.
Established industrial manufacturers of -glucan derived from baker’s yeast for medical
care are:
Biothera (USA)
Immunocorp (USA)
MSD (Merck Sharp & Dohme – USA)
Eli Lilly (USA)
The US -glucan market holds significant growth potential with expected annual growth
rates of 10-15% for the following years.The market for -glucan ingredients has an
estimated value of US $80-100 million, according to Steen Andersen, Fluxome CEO.
-glucan extracted from the mushroom shiitake (Shanghai, China) is available at
internet for US $40-100 per kg while gelatine capsules with -glucan from yeast are
available at internet for US $1.660-3.900 per kg.
BioCAP, a Swiss manufacturing company producing glucan, has made a business plan
where the price of between US $110-166 per kg is mentioned.
Immune Health Market
The Asia Pacific immune health ingredients market which is further divided into five
subsegments including: yeast beta glucan, Vitamin C, probiotic cultures, prebiotics and
medicinal mushroom ingredients was valuated to US $958.2 million in 2009. Due to
frequent outbreaks of diseases such as severe acute respiratory syndrome (SARS), bird
flu and swine flu coupled with a higher per cent of the ageing population (having lower
immunity), this market is expected to grow to US $1.46 billion in 2016.
The Global Market of Feed Additives
The global animal feed production in 2012 is dominated by China (175.400 million
metric tons), Brazil (164.920 million metric tons) and USA (59.629 million metric tons).
The global market value of feed additives was US $16.1 billion in 2010 and is
expected to grow to US $27.6 billion in 2017 at an estimated annual growth rate
(CAGR) of 8.1% from 2010 to 2017, according to the BCC Research. Estimates in the
latest Markets and Markets report shows that the feed additives market will reach
$18.7 billion in 2016. According to ”Global Animal Feed Additives by Type, Livestock,
Geography, Regulations Trends & Forecasts (2009-2016)”, the Asian market, a driving
sales force, will hold 28.5% of the global market share in 2016. Increasing demand for
meat products in the region and rising domestic meat production are both expected to
contribute to the area’s growth. Europe is currently the leading market for feed additives,
42

Table:After Global Feed Summary 2012 (Alltech).
Figure:After Global feed summary 2012 (Alltech).
43
Country Poultry Ruminant pig aqua other aqua
Asia 116.00 80.12 81.00 24.50 4.03 24.50
Europe
EU27 & Non-EU Europe
and former Soviet Union
67.96 55.76 61.90 1.72 7.80 1.72
N America
US & Canada
91.07 45.5 31.23 0.286 17.09 0.286
Middle East/Africa 27.71 17.04 0.87 0.60 0.72 0.60
Latin America 71.26 22.34 24.80 1.88 4.46 1.88
Others 4.60 3.49 2.00 .20 .86 .20
Total 378.6 224.3 200.7 29.7 35.0 29.7
* Other includes Horse (9.24M) and Pets (25.6M)
Global Feed Tonnage by Species
Global Feed Tonnage % by Species
26%
3% 4%
23%
44%
Pig
Poultry
Ruminant
Aqua
Other

with a 35% share in 2011 resulting from regulatory concerns and increasing per capita
meat consumption. North America is the second largest market as of 2011, with a share
of 28%; the US is the largest market with a share of more than 80%, according to the
report.
According to the BCC Research report, amino acids are by far the largest feed
additive group.This market segment is expected to rise at a CAGR of 10.2% and reach
US $18.8 billion by 2017, up from US $9.6 billion in 2010.
Vitamins represent the second-largest ingredient group after amino acids, with a total
market value of US $2.9 billion in 2010.This segment is expected to grow to US $3.8
billion by 2017, increasing at a CAGR of 4.2%.
Figure: Global market value of feed additives by region, 2010 (BCC Research).
44
Table:After Global Feed Summary 2012 (Alltech).
Asia 305 Million
Europe* 200 Million
North America 185 Million
Latin America 125 Million
Middel East/Africa 47 Million
Other 11 Million
* Europe = EU27 & Non Europe former Soviet Union
Global Feed Tonnage by Region
Global Market Value of Feed Additives by Region
Latin America
12%
Asia Ex. China
11%
North America
21%
Europe
26%
China
22%
ROW
8%

CONCLUSIONS AND TRENDS ON ALGAE
A large number of academic and industrial players are active on the international
algal stage. Nations which have a long-established history of expertise for macroalgae
– chiefly in applications for food, fertilisers, alginates, and pharmaceuticals – include
China, Japan, the Philippines, Korea, Indonesia, Chile, and in Europe coastal countries
such as France, the UK, Norway and Portugal.
For microalgae, the US (with its Aquatic Species Programme, as well as pioneer
ing nutraceutical companies), Australia, Israel, Japan, China,Taiwan and several EU
countries have well established capabilities, again chiefly in high value applications such
as nutraceuticals.
The more recent biofuels boom has had a large influence, especially in the US and
the BRIC countries (Brazil, Russia, India and China); considerable funding has been
invested there.
The advantages of algae – no need for arable land or freshwater to produce the crop,
and the possibility to boost yields with CO2
from flue gasses, to name but a few – are
intuitive and attract investors’ attention.
The difficulties of producing algal fuels at scale – including: the energy burden for
mixing, harvesting and processing; culture collapse and contamination /grazer control –
are much less intuitive, but have proved very hard to overcome.
To attract funding, a significant number of the new companies that have been formed
make unrealistic claims about productivities and profits; however, this threatens the
credibility of the field in general.
In addition, the collapse of many new companies, including the high-profile MIT-
spin-out GreenFuel Technologies Corporation in 2009, has led to more caution.
4. Analysis on How the Nordic
Countries Best Can Capitalise on its
Strengths in the Light of Current and
Emerging Opportunities for Algal
R&D, and in the Context of
International Competition
46

Internationally, recognition is growing that the pursuit of algae only for bioenergy will
make successful commercialisation very difficult; the general trend is towards
integrative solutions that make use of the protein fraction for food and/or feed as well as
the oil fraction for fuel.This is also shown by the priorities of the Algal Innovation
Centres such as AlgaePARC (Wageningen,The Netherlands), Estación Experimental
de la Fundación Cajamar (Almeria, Spain), CEVA – Centre d’Etude et de Valorisation
des Algues (Pleubian, France), MBL – Microalgal Biotechnology Laboratory (Beer
Sheva, Israel), SD-CAB – Center for Algae Biotechnology (San Diego, California,
USA), AzCATI – Arizona Center for Algae Technology and Innovation (Mesa,
Arizona, USA), PRAJ-Matrix – The Innovation Center (Pune, India), CABS – Center
for Advanced Biofuel Systems (Saint Louis, Missouri, USA), EBTIPLC Biofuel
Research & Development Centre (Coimbatore,Tamilnadu, India); all of them are
interested in a range of algal products and processes, rather than on algal biofuels only.
There is also an increasing trend to exploit algae as an industrial biotechnology
platform; international leaders are the US, Israel, and the EU, although BRIC countries
are catching up rapidly.
HOW CAN THE NORDIC COUNTRIES BEST CAPITALISE ON ITS
STRENGTHS IN THE LIGHT OF CURRENT AND EMERGING
OPPORTUNITIES FOR ALGAL R&D, AND IN THE CONTEXT OF
THE INTERNATIONAL COMPETITION?
Based on the analyses, there are 25 universities and R&Ds working on algal topics while
only 7 companies are working on commercial algae projects in the Nordic countries.
Academia in the Nordic countries has great expertise in the environmental and
ecological sectors for both microalgae, especially (but not exclusively) in the marine
sector, however there is not yet any great business activity related to algae.The Nordic
countries are world leaders in aquaculture and omega-3 industry in which are suffering
from shortage of ingredient source due to the wild fish stock depletion.
For the Nordic countries, owing to the climate conditions, topography and land
availability, producing algal biofuels at appreciable scale is only realistic if they are grown
at sea. A further opportunity for the Nordic countries lies in using its R&D excellence
to develop IP that can be applied in places more suited to large-scale algal production.
Successful operations in microalgae will always have to take the regional parameters
into account and use them to their benefit.The Nordic countries do not have large
desert areas with abundant sunlight all year round, which generally might be considered
the ideal conditions for growing algae. However, the Nordic countries have a mode-
rate climate with less need for cooling, significantly extended hours of daylight in the
growing season, lots of water, great industrial waste streams for growing algae (CO2
,
nutrients and heat), a world-class process industry, and a general aptitude for new and
green technologies and building great companies. Also, sun conditions and the
47

Photosynthetically Active Radiation (PAR) levels are much better in certain regions in
Sweden than for example in Germany or the Netherlands, where successful commer-
cial algae operations already are in place.Then, the most suitable method of large-scale
microalgae production in the Nordic countries will be closed-system photobioreactors
(PBRs) in greenhouses with controlled climate and light conditions.
Beneficial Sunlight Conditions in the Nordic Countries
In general, the sun is quite an unstable and unpredictable quantitative energy source
for cultivating phototrophic microalgae, and this makes the cultivation of microalgae
challenging. On sunny days, the microalgae may reduce or stop the photosynthesis
(photoinhibition) due to high irradiance levels.To avoid photoinhibition, the production
facilities should be protected from such high sunlight exposure, and in addition keeping
the cultivation units at high biomass densities to avoid light penetrating because of cell
shading. On sunny days in an open production system, evaporation is the challenge and
water has to be refilled to maintain the production medium, whilst in closed production
systems, the overheating is the problem and the PBRs need to be cooled.The Nordic
sunlight is less intensive and consequently bringing less problems with over-heating
compared to latitudes more south.
At high latitudes, the solar angle is low, and solar light capture could be more effec-
tive by keeping the PBRs at an optimal angel to the sun.The project Solar Power Plants
in the North, leaded by Tobias Boström (tobias@norut.no) at Norut, is demonstrating
that a solar tracking system could be 50% more efficient than static panels at high
latitudes. Such research results might be interesting to convert into the adaptation and
management of PBRs in the Nordic countries and could be a topic of research in PBR
engineering.
The adaptation of the trees and the plants to the sunlight conditions are expressed
in their stems and leaf architecture.Trees growing close to equator have adapted their
morphology to catch the main sunlight supplied vertically from zenith while trees and
plants growing close to the polar areas have adapted their morphological structure to
obtain more of the horizontal sunlight.This adaptation is interesting to have in mind in
the development of PBRs for Nordic conditions.This is also an argument for selecting
open pond production close to equator whilst vertical PBRs might be more relevant for
Nordic conditions.
In some cases the unpredictable variation in natural sunlight is insufficient to secure a
successful production as e.g. Asta Real AB relay strictly on controlled artificial illumina-
tion to produce astaxanthin from the microalgae Haematococcus pluvialis.The Nordic
countries have a world leading greenhouse and horticulture expertise which might
contribute in the development of illumination systems adapted to microalgae. Mass
production of microalgae in large-scale PBR is still a very new industry and there is a
potential for technology improvement. Among elements to be considered more priority
are distribution of sunlight and artificial light to optimise the production effectiveness
of the PBR. For algae cultivation on a larger scale in greenhouses it is natural to use
horticultural lamps. Horticultural lighting has been developed for decades and is widely
48

http://www.focussolar.de/Maps/RegionalMaps/Europe/Europe
used in nurseries. Since the photo ecology of algae differ significantly from higher
plants reflected in their light harvesting physiology, horticultural lamps might need to
be technically modified to be fully beneficial for algae cultivation.Trials carried out by
IGV, Berlin Germany 2006 based on use of state-of-the art photobioreactor technology
developed by IGV indicated that applying natural illumination supplied with artificial
lightning for algae production is feasible in terms of productivity.
In summary, an area with particular development potential for the Nordic countries
at this time appears to be the exploitation of high value chemicals for cosmeceuticals
and nutraceuticals markets in the context of industrial biotechnology. Residues after
extraction can be used for anaerobic digestion and the resulting biogas injected into the
gas grid, although co-digestion with another feedstock will be needed to provide the
49
Global Horizontal Irradiance, GHI (Annual value 2007 in kWh/m²)

necessary economies of scale. Biomass production costs can be lowered by growing the
algae on nutrient-rich waste water and with waste CO2
; appropriate regulatory stand
ards would need to be met. Other areas of significance include generating IP e.g. for
liquid biofuels (to be applied internationally), replacing fishmeal in animal feed, and
developing integrated growth systems with anaerobic digestion and aquaculture. Given
adequate support, algae have the potential to become a substantial driver in the develop-
ment of a bio-based economy in the Nordic countries.
MICROALGAL R&D OPORTUNITIES AND BENEFITS ARE MAKING A
GENERAL PROGRESS IN PLANT SCIENCE AND BIOTECHNOLOGY
The need of moving from the reliance on fossil resources has made biomass becoming
resurgent as a principal feedstock and biological sciences, plant science and biotech-
nology in particular will need to provide solutions to key challenges facing our planet.
Step changes in these disciplines have already been made by microalgal R&D in which
has the potential to accelerate the needed progress. Evolution has led to great diversity
across all kingdoms of life, providing an abundance of bio-active molecules, enzymes,
pathways and traits that are all targets for potential biotechnological applications. In
this variety across all forms of life, both animals and land plants occupy a rather narrow
phylogenetic space. Microalgae, however, are represented in almost all field of life, and
therefore collectively provide a truly astonishing richness of diversity – a resource that as
yet has hardly been used.
The following arguments will outline how microalgal R&D, by developing this
resource, may contribute to solving major challenges, such as food security, energy,
materials, and benefit biological and biotechnological disciplines’ progress in general.
Food Security supported by Science
Microalgae is becoming more important as food source, especially when it comes
to protein- and mineral-rich animal feed in aquaculture and beyond, and much can
be learnt from studying microalgae that will be of benefit to crop science generally.
As microalgae can be found in any imaginable habitat, and have evolved mechanisms
with which to withstand extremes of temperature, irradiation, drought and salinity, this
rich, however as yet hardly tapped, resource of genetic diversity can be mined for novel
enzymes with the increasing ease and speed of genome sequencing. Enzymes that are
found to be effective for desired traits may be transferred into conventional crop plants
to reduce risk of crop failure and maintain the usefulness of arable land which might
otherwise be rendered useless by the effects of climate change.
Other example of interesting traits to be transferred to conventional crops are the
enzymes for the long-chain poly-unsaturated fatty acids (PUFAs) synthesis in which
are an important class of nutraceuticals that we currently derive from oily fish, or via fish
oil capsules, but which originate from microalgae at the beginning of the marine food
chain. Similar approaches could be taken for other valuable microalgal metabolites (e.g.
other oils, vitamins, pigments and antioxidants).
50

Alganalys 130220

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (20)

Similar to Alganalys 130220

Similar to Alganalys 130220 (20)

Recently uploaded

Recently uploaded (20)

Alganalys 130220