Swedish Algae Factory

Swedish Algae Factory

Business Idea
Swedish Algae Factory is the only company in the world that cultivates the microalgae group diatoms and sells their high-tech silica shells. The cultivation process and core applications are patent pending. Our material, Algica, has unique light altering, absorptive and binding properties that are unmatched by synthetic materials. Algica is today sold in the personal care segment and tested for use as a solar panel efficiency enhancer.

Addressed markets
Personal Care
Consumers in the personal care industry increasingly seek natural and “free-from” products in the grocery aisle —a trend that also affects the personal care market. The organic skin care product segment is expected to increase at a CAGR of 8-10% from 2016 to 2024 and reach €6B in 2024.

Solar
A total capacity of 100 GWp (Gigawatt peak capacity) of solar panels was produced in 2018 to a price of €0,28-0,37/Wp. This means that every percentage increase in solar panel efficiency has a market value of €300M annually. Thus Algica’s proven 4% enhancement is worth €1,2B annually.

Benefits to customers
Personal Care
Our customers appreciate that Algica is of natural origin, with high marketing value and valuable high-tech functionalities. Algica has several properties that is of interest for the industry.

• Algica can today based on tests with external institutes and customers be claimed as a:
• Moisturizer (One of the key functions of personal care products)
• Cleanser (One of the key functions of personal care products)
• Anti-pollution agent (An ingredients that blocks air-pollution from entering the skin. An application that has been growing rapidly the last years, especially in Asia)
• Rheology modifier (Creates a nice feeling of a formulation)

We are also in the process of claiming the material as an SPF booster, where first in vitro studies have shown positive results. Sales started in this segment in autumn 2018 with material derived from our smaller pilot facility. Our early customers are mainly luxury and organic skin care brands and producers. During 2020 we sold out all Algica produced from our pilot facility in this segment. As of today, we have 15 paying customers ad over 120 actors are testing Algica all over the world. 13 of these are larger global actors. We are now building up our first lager commercial facility to be able to meet the growing demand in this segment.

Solar
Algica enhances the efficiency of solar panels with at least 4%, worth at least €1,2B annually for the solar energy industry. This % has been verified together with potential customers and research groups. We have ongoing tests with three major actors in the solar energy industry.

Team
Our team of 11 people has over 200 years’ combined experience in algae research, biology, production, engineering and sales. Our cutting-edge research has resulted in patents, key trade secrets and publications in e.g. Nature. Our engaged board of directors has experience in building high growth companies, with expert knowledge in the chemical industry.

Funding plan
The company is not fundraising today. An A round was raised March 2020. A B round for further expansion is to be scheduled. Fundraising will start as earliest end of 2021.