Swedish Algae Factory, a pioneer in the application of microalgae diatoms, has announced the successful scale up of its factory in Western Sweden. This state-of-the-art facility now enables the commercial-scale production of Algica, a patented material derived from diatom algae shells. The innovative product is being hailed as a game-changer for industries ranging from personal care to renewable energy.
Algae Diatoms Power Multifunctional Skin Care and More
Beyond personal care, Algica has been proven to enhance solar panel efficiency and energy storage in lithium batteries, with additional use cases emerging in wound care, catalyst support and green chemicals.Image courtesy of Swedish Algae Factory
Swedish Algae Factory’s primary focus lies with microalgae diatoms, renowned for their evolutionary success and unique nanostructured silica shells. Diatoms are often referred to as the "lungs of the ocean," as they are responsible for producing one-fifth of Earth’s oxygen.
The diatom shells exhibit unmatched light-altering, absorptive, releasing and blocking properties, making them invaluable to diverse applications, per the company. For example, Algica is an efficient moisturizer, cleanser, sensory modifier, anti-pollution agent and SPF booster, the website reports. It can also work as a carrier for other active substances. Algica additionally is COSMOS approved and originates from the seas, ensuring the safety of sea life, the company notes.
Currently, Algica is used globally in more than 60 personal care products but with the scaling of production capabilities, major collaborations with additional beauty and skin care brands are set to launch in 2025. Beyond personal care, Algica has been proven to enhance solar panel efficiency and energy storage in lithium batteries, with additional use cases emerging in wound care, catalyst support and green chemicals.
Zero Waste Facility Designed for Sustainability
The newly scaled facility, located in Gothenburg, Sweden, combines innovation with sustainability. The factory features a 2,300-square-meter greenhouse that houses stacked raceway ponds, creating 3,500+ square meters of algae cultivation capacity, with the potential to grow significantly further. This environmentally conscious production uses recycled nutrients and carbon dioxide emissions sourced from a nearby food industry partner to fuel the algae’s growth.
The process is zero-waste, with any biomass by-product converted into biogas to provide energy for the factory, or as eco-fertilizers supplied to local farmers. This closed-loop system not only minimizes environmental impact, but also ensures every aspect of production is used effectively.
CEO and co-founder Sofie Allert explained, "We are striving toward a production that is as environmentally friendly as possible, using recycled nutrients and carbon dioxide for algae growth."
Expanding Horizons and Accelerating Innovation
To support this scaling effort and accelerate its research and development initiatives, Swedish Algae Factory has secured additional funding, with contributions from Chalmers Ventures and other investors. The funding will be directed toward validation projects such as improving personal care formulations, which include retinoid encapsulation, SPF enhancement and controlled release of active ingredients.
“This funding allows us to both scale production and further validate new applications for Algica,” Allert noted. “Our ongoing R&D efforts will showcase how diatom shells can replace harmful chemicals across diverse industries.”
Chalmers Ventures, a long-time investor in the startup, also expressed enthusiasm for the development. “Swedish Algae Factory has done truly groundbreaking work by scaling their production while generating revenue with existing clients — something that usually takes deep tech companies a lot longer," said Jonas Bergman, investment director at Chalmers Ventures. "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."
Exclusive Insights with CEO Sofie Allert
What inspired Swedish Algae Factory to focus on diatoms and their high-tech silica shells as a core innovation, and what challenges did you face during the development of Algica?
Allert: Diatoms produce at least a fifth of all the oxygen on the planet, and the reason for their evolutionary success is their unique high-tech nanoporous silica shells. These shells are designed to protect and nourish algae and can do the same for skin.
Challenges during the development of Algica have mainly been linked to the scaling of production.
Can you elaborate on the environmental impact of your production process, particularly how recycled nutrients and carbon dioxide are utilized in algae growth?
Allert: We use nutritious water — that to others, would be considered waste — from [a partner] in the food industry located close to our plant. Carbon dioxide emissions are also used to grow our algae.
After the extraction of our Algica product, the remaining biomass is used to produce biogas that can heat our factory, as well as used by local farmers as eco-fertilizers.
With additional funding raised from investors like Chalmers Ventures, what are your next steps for expanding production and advancing R&D efforts for Algica?
Allert: With this funding, we will increase the output of our existing production capacity — toward raising more funds for building more production capacity. The funds will also be used for the validation of new claims for Algica in the personal care sector, which include encapsulation and the controlled release of retinoids and other actives; fragrance retention; and increased SPF boosting.
The funds will also be used to further validate successful prototypes with Algica within wound care and permeable membranes.
Invitation for Sustainable Collaboration
With its newly scaled production capacity, Swedish Algae Factory is inviting industry partners and new investors to join them in reshaping how industries utilize sustainable materials to improve everyday products.
“Now, with the scaled production and increased interest for Algica in existing and emerging markets, we can scale the impact of algae shells' superpower," Allert concluded.
Swedish Algae Factory’s pioneering work demonstrates that sustainability and technological advancement can go hand in hand, setting a precedent for industries worldwide. Whether it’s improving skin care formulations or advancing renewable energy, diatoms' biology has unlocked a future full of possibilities.
