Swedish Algae Factory is scaling its factory production to provide beauty and battery industries advanced materials made from algae shells
The Swedish startup is the first in the world to start full commercial-scale production of the microalgae group diatoms. To drive new applications and market expansion, the company raised additional funding from existing investors such as Chalmers Ventures. Diatoms are responsible for producing a fifth of all of the planet’s oxygen, and their unique high-tech silica shell can be used in applications from personal care products to solar panels and green chemicals.
GOTHENBURG, Sweden (April 3rd, 2025) Swedish Algae Factory, a pioneer in utilizing the microalgae group diatoms, is scaling production at its commercial-scale factory in Western Sweden, producing its patented Algica® material, made from algae’s high-tech silica shell. Today, Algica is already being used in over 60 different personal care products around the world, with bigger partnerships in the beauty and personal care industry kicking off in 2025 with commercial-scale production capabilities.
The facility is divided into a Cultivation part and a Processing part. The Cultivation is fitted into a 2300 square meters greenhouse and consists of shallow raceway ponds stacked onto each other to create over 3500 square meters of cultivation, with the potential of scaling to 10,000 square meters of cultivation.
“We are beyond excited to have a fully functioning factory that serves our clients globally. We are striving towards a production that is as environmentally friendly as possible, using recycled nutrients and carbon dioxide for algae growth. Our organic by-product is used to produce biogas and eco-fertilizers, but in the future, it may be used in animal feeds, cosmetics, and food products,” says Sofie Allert, CEO and co-founder of Swedish Algae Factory.
The company’s patented shell material, Algica, has unique light-altering, absorptive, releasing, and blocking properties that are unmatched by synthetic materials. Algica also has several health and environmental benefits compared to competing solutions – microalgae group diatoms are responsible for up to one-fifth of the planet’s oxygen production, making them the lungs of the ocean. The shell’s natural capabilities have made it the perfect solution for the personal care industry.
In addition to personal care, Algica has been tested in solar panels for increased efficiency and lithium batteries for increased energy-storage capabilities with great initial results. As the newest R&D developments have shown, Algica can also reduce and replace harmful chemicals in multiple applications, such as wound care and catalyst support.
To accelerate its market expansion and develop new applications, Swedish Algae Factory has raised €3M in additional funding from new and existing investors, such as Chalmers Ventures. The raised funding also includes loans and grants.
“Swedish Algae Factory has done truly groundbreaking work by scaling their production while generating revenue with existing clients, something that takes deep tech companies usually a lot longer. As green chemicals are something that we at Chalmers Ventures find especially interesting, we can’t wait to see what sort of solutions diatom shells can be used to replace harmful products,” says Jonas Bergman, investment director from Chalmers Ventures.
“Now, with the scaled production and increased interest for Algica in existing and emerging markets, we can scale the impact of algae shells superpower. We are also inviting new investors and industry partners to join our ride to really make a big difference in what technologies and ingredients we use in our everyday lives,” Allert concludes.
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For additional information:
Media kit with pictures
Sofie Allert, CEO
Swedish Algae Factory
+46(0)703875509
sofie@swedishalgaefactory.com
About Swedish Algae Factory
Swedish Algae Factory is a Swedish privately owned company founded in 2016 by Angela Wulff, a professor in marine ecology and Sofie Allert, a biotechnical engineer with a master’s in business development. The company was founded with the vision to showcase the power of algae as a raw material and the potential of creating a climate positive business using algae.
We started to grow our algae in the lab at the University of Gothenburg followed by a small 6 sqm greenhouse at the University premises before the company was founded. In 2016 when the company was founded, we started to cultivate our algae in a 23 sqm greenhouse in Kungshamn. Here we started our collaboration with a company in the food industry whose wastewater we started to clean whilst growing our algae. In 2018 we 10 doubled the greenhouse space and started to produce Algica in small commercial volumes at the same site.
Read more: www.swedishalgaefactory.com
About Chalmers Ventures
Chalmers Ventures is a leading Tech Investor and Venture Builder in the Nordics, dedicated to creating global growth companies and taking new technology from lab to market. The focus is on university spin-outs and deep tech. We employ a unique dual approach that integrates venture creation with tech investments, harnessing the potential of new research and deep tech within Chalmers. Our expertise lies in initiating and nurturing companies from groundbreaking research, ensuring a robust pipeline of high-quality ventures in which we invest and act as active owners. Our involvement extends through the entire company lifecycle until exit, with the aim to generate substantial business success and make a positive global impact.
