Clean Food Group Acquires Million-Liter Fermentation Facility to Scale Sustainable Oil Production
Key Insights
Clean Food Group (search) acquired Algal Omega 3's one million-liter fermentation facility in Liverpool, positioning itself as the world's largest manufacturer of yeast fermentation-derived sustainable oils and fats.
The acquisition enables commercial-scale production without costly new infrastructure, with CFG already validating the process by manufacturing two tons of oil in a recent fermentation run.
The company received regulatory approval for its CLEAN Oil™ 25 (search) product in cosmetics markets across the UK, Europe, and US, with food applications pending regulatory review.
Clean Food Group (search), a UK-based food technology company specializing in sustainable oil production through yeast fermentation, has acquired the assets of Algal Omega 3 Ltd (search), gaining immediate access to one million liters of fermentation capacity at a 12-acre facility in Liverpool. The acquisition positions the company as the world's largest manufacturer of yeast fermentation-derived sustainable oils and fats.
Commercial-Scale Validation Achieved
The Liverpool facility has already demonstrated commercial viability for Clean Food Group (search)'s technology platform. The company successfully manufactured two tons of oil in a recent fermentation run using 100,000-liter reactors, materially de-risking the acquisition according to CEO Alex Neves. This milestone proves the robustness of CFG's proprietary technology and its ability to scale in existing manufacturing facilities without requiring costly new-build infrastructure.
"We've already validated commercial-scale production at the site, manufacturing two tons of oil in a recent fermentation run, which materially de-risks the acquisition," Neves stated at the Future Food-Tech summit in London.
Strategic Leadership and Infrastructure
Food manufacturing veteran Bill Thurston has been appointed Managing Director of the Liverpool facility. Thurston brings 30 years of experience in commercial and food manufacturing, having previously led the acquisition of Unilever (search)'s edible oils and fats business as CEO of CSM (search) and served as Managing Director of Dawn Foods (search) and Arkady CraigMillar.
The facility includes extensive R&D capabilities and downstream processing infrastructure capable of extracting oil from yeast cells using a solvent-free wet extraction process. The site also offers significant opportunity for future expansion within its 12-acre footprint.
Regulatory Approvals and Market Entry
Clean Food Group (search) has secured regulatory approval for its CLEAN Oil™ 25 (search) product as a cosmetic ingredient in the United Kingdom, Europe, and the United States. The company is currently preparing regulatory dossiers for food applications in Europe and the US, with Neves noting that the novel foods approval process is somewhat more straightforward since CFG does not genetically engineer its yeast strains.
The technology underlying the business was developed at the University of Bath by Professor Chris Chuck, who now serves as technical lead at the company. The proprietary yeast strain uses directed evolution to increase oil content and can produce oils with customized fatty acid profiles ranging from liquid oils to semi-solid fats to saturated hard fats.
Market Strategy and Economics
Rather than competing in commoditized oil markets, Clean Food Group (search) targets specialty applications where companies pay premiums for fats with specific functionality that avoid the environmental and ethical concerns associated with tropical oils like palm, coconut, and cocoa butter. The company's first commercial product has been developed in collaboration with beauty products manufacturer THG LABS (search) and specialty chemicals company Croda (search).
"We're not trying to replace commodity oils," Neves explained. "The first product we're launching has been developed with THG LABS (search) and Croda (search) and has specific functionality in cosmetics."
Investment and Future Plans
Clean Food Group (search) has raised approximately £8 million ($10.7 million) from investors including Agronomics (search) and Döhler (search), plus non-dilutive funding. Agronomics has invested a total of £1.6 million in CFG, with the position currently valued at £6.9 million, representing approximately 4.8% of Agronomics' Net Asset Value as of June 30, 2025.
The acquisition fast-tracks CFG's route to market, avoiding the traditional capital-intensive path from pilot to demonstration to commercial plant construction, which can take years and cost upwards of $100 million. With commercial-scale validation established, the company is preparing for a Series A funding round expected in the first half of 2026.
Jim Mellon, Executive Chair of Agronomics (search), commented: "We are on the brink of a technological revolution in food, one which can shorten supply chains and bolster food security, while meeting consumer demand for more sustainable and affordable options."
Regional Impact
Knowsley Council welcomed the investment, stating: "Clean Food Group (search)'s decision to establish their new biotech manufacturing facility here is testament to the strength of our local skills base and the supportive business environment we have built. This acquisition will not only create high-value jobs but also positions our area at the forefront of biotech innovation in the UK."
The facility positions Liverpool as a center of biotech excellence and places the region at the forefront of what CFG describes as the "Bio-Industrial Revolution," targeting the $20 billion global market for sustainable oils and fats across food, cosmetics, and pet food industries.