Clean Food Group (CFG) has acquired a large-scale factory in Knowsley, Merseyside, positioning the region as a potential hub for biotechnology. The company will use the 12-acre facility, formerly operated by Algal Omega 3, to produce sustainable oils and fats from food waste through a specialized yeast fermentation process.
The acquisition enables CFG to immediately begin commercial-scale production, targeting a global market estimated to be worth $20 billion. The move is expected to fast-track the company's growth and solidify its position in the bio-industrial sector.
Key Takeaways
- Clean Food Group has purchased the assets of the former Algal Omega 3 plant in Knowsley Business Park South.
- The facility will be used to convert food waste into sustainable oils for the food, cosmetic, and pet food industries.
- This acquisition allows CFG to bypass the lengthy and costly process of building a new plant, which can exceed $100 million.
- The company aims to become the world's largest producer of these sustainable oils, targeting a $20 billion global market.
Knowsley Site Acquired Following Administration
Clean Food Group has taken control of the 12-acre site on Penrhyn Road after the previous operator, Algal Omega 3, entered administration in May. The former company ceased operations after losing its last major contract, which led to the appointment of administrators from Interpath Advisory.
Stuart Irwin and Richard Harrison of Interpath Advisory managed the process, seeking a buyer for the facility which employed 42 people at the time. According to Mr. Irwin, Algal had developed an impressive fermentation and extraction site but struggled with intense international competition and rising production costs.
The acquisition by CFG provides a new purpose for the advanced facility, ensuring its continued use within the biotechnology field.
Background on the Acquisition
Algal Omega 3 entered administration after facing significant market pressures. Administrators from Interpath Advisory were appointed to find a buyer for the business and its assets, including the state-of-the-art Knowsley plant. Clean Food Group's purchase secures the future of the site and leverages its existing infrastructure for a new technological application.
Strategic Move to Accelerate Market Entry
The purchase of the Knowsley plant is a significant strategic step for Clean Food Group. The company's CEO, Alex Neves, stated that the deal provides a rapid path to commercial production, avoiding the typical delays and high costs associated with new construction.
"With this acquisition, we have fast-tracked our route to market, leapfrogging the traditional, capital-intensive path from pilot to demo to new build commercial plant, which can take years and cost upwards of $100m (£75m)," said Neves.
CFG has already validated its technology at the site by successfully completing a production run that yielded two tons of oil. This test demonstrates that the company's fermentation process is compatible with the existing equipment, allowing for immediate operational startup.
This accelerated timeline is crucial as CFG prepares for its planned Series A funding round, now anticipated in the first half of 2026.
A New Hub for UK Biotechnology
Company executives believe the Knowsley facility will become a central part of the UK's growing bio-industrial sector. The site is already recognized for its biotech capabilities and offers significant room for future expansion and research and development activities.
Alex Neves emphasized the broader implications of the acquisition, positioning Liverpool at the forefront of a new industrial movement.
"This is not just the opening of a fermentation plant, it is the dawn of a new era in UK biotechnology, one that places Liverpool at the beating heart of the new Bio-Industrial Revolution," he commented.
The company's technology focuses on creating sustainable alternatives to commonly used tropical oils, such as palm oil, which are often associated with environmental concerns. By using food waste as a primary material, CFG aims to contribute to a more circular economy.
Key Figures and Projections
- Market Opportunity: $20 billion (£15 billion)
- Site Size: 12 acres in Knowsley Business Park South
- Capital Saved: Over $100 million (£75 million) by avoiding new construction
- Initial Test Production: 2 tons of oil successfully produced
New Leadership and Future Plans
To oversee the new operations, Clean Food Group has appointed Bill Thurston as the manager of the Knowsley site. Thurston brings 30 years of experience in the commercial and food manufacturing sectors to the role.
"I look forward to rapidly establishing this site as a global leader in sustainable alternatives to tropical oils," Thurston stated upon his appointment. His immediate focus will be on scaling up production and establishing the facility's global presence.
Founded in 2022, CFG has been working to commercialize its research. The company recently achieved a milestone by securing regulatory approval for its CLEAN Oil 25 product as a cosmetic ingredient in the United Kingdom, Europe, and the United States, opening up another significant market for its innovative products.