Algae biomass market booming on climate cooling potential

Driven by its potential to help cool the climate crisis, the algae biomass sector is accelerating across the EU. With new product approvals in place and fierce competition from foreign markets, the algae market is hotting up.

The European Algae Biomass Association’s (EABA) manifesto commits to ‘fostering a vibrant and competitive algae industry in Europe’. Founded in 2009, the EABA brings together scientists, industry professionals, and policymakers to advance the sector through collaboration.

With over 300 entities throughout Europe, EABA’s membership split is 60% industry and 40% academia, covering most European countries. Aligned with the EU Algae Initiative, the EABA supports all algae production methods in all types of reactors and includes microalgae to macroalgae, often referred to as seaweed.

Unlocking algae potential

The global algae products market size is estimated to surpass €8.2 billion by 2033.

According to algae farming firm Global Algae: “building algae farms to stop deforestation and enable regrowth of tropical rainforests without loss of production or revenue could reduce carbon emissions by ~10 Gt CO2-eq /year.” With large-scale algae farming for feed and fuel, reducing emissions by 13 to 20 gigatons of CO2 per year.

Growing algae is also economical in terms of its watering requirements and its low maintenance.

Aside from its ability to thrive in salt water, it is happy to absorb the pollutants of wastewater as nutrients, too, making it very friendly to the dwindling waterways of the planet. Its ability to feed off waste and pollution makes it ideal for the circular economy.

The common areas of algae use include food, animal feed, fertiliser alternatives, biofuels, chemicals, cosmetics, wastewater treatment and the health sector.

Diverse algae biomass sector

Recognised for their nutritional and functional benefits, algae such as seaweeds and microalgae are used as foodstuffs. In February 2024, more than 20 algae species were added to the EU Novel Food Status Catalogue.

According to EABA, their nutritional benefits include hydrocolloids for food texture, omega-3 fatty acids, polyunsaturated fatty acids (PUFAs), vitamins, and antioxidants and are rich in pigments.

Europe is rich in startups that are harnessing the power of Algae as a foodstuff, and things have moved quite far on from just adding spirulina to your smoothies.

French food-tech firm Algama Food is making algae foodstuffs as an alternative to animal protein. After raising a €13M Series A round in January 2023, its algae-based seafood hit the market in 2024. Now, consumers can enjoy a smoked salmon or canned tuna taste that hasn’t been caught in the process.

Animal Feed

Algae-derived products are also becoming popular in animal nutrition, not only as a nutritious foodstuff, but EABA says that the ‘omega-3-rich algae oils offer a sustainable alternative to traditional fish oils, reducing marine ecosystem pressure’. Not only does it help with marine stocks, but it has some great health benefits to animals with its ‘probiotics and speciality fatty acids, supporting sustainable animal husbandry’.

Irish agri-tech startup Pitseal is producing a seaweed-based film for silage pits.

Traditionally covered in plastic and tyres to keep the moisture in, loose wrapping and stray tyres are harmful to the environment, Pitseal’s seal eliminates that problem. The film coating the pit locks in moisture, and the biofilm is later eaten by the animals as part of their winter feed, creating a zero-waste cycle.

Algae for fertiliser

Algae can provide essential nutrients, enhancing crop yield and improving soil structure when used as a biofertiliser or a biostimulant. Biocontrol agents and soil microalgae boost water retention and plant resilience, promoting sustainable farming practices.

Public awareness

As part of its manifesto, EABA will seek to boost public awareness of European algae products, their benefit and their quality to differentiate them from the lower-priced competition, for example, lower-cost imports, particularly from Asia.

It advocates for a streamlined approval process regarding the novel food approval for new algae-based food products and appeals for the same EU high standards to be adhered to in the products entering the European products market from elsewhere - implementing industry-wide standards for quality and safety sector agnostic.

Simplifying tax regulations and trade processes can ease the operational burden on algae producers and attract investment.

Scaling the sector

Recognising the bottlenecks in the sector and hoping to meet on an equal playing field with its traditional agriculture counterparts, the EABA believes that investment in research, development and innovation will support sector growth with advancements in technology and increased employment. It aims to do this by “utilising carbon credits can provide financial incentives for algae production, promoting sustainability and financial viability” in the sector.

Expanding production

Expanding algae production means streamlining the process for algae cultivation, investing in technology to overcome production constraints is essential for large-scale production and creating a supportive environment that simplifies regulatory compliance can help meet growing demand.

[Edited By Brian Maguire | Euractiv's Advocacy Lab ]