Algiecel scales microalgae production as fish oil supply pressures mount

Algiecel has inaugurated a microalgae production facility to address the growing need for fish oil ingredient alternatives in the beauty industry. The move arrives as global fish oil supplies suffer from biodiversity devastation caused by overfishing and projected to result from the 2026–2027 El Niño climate event.

The facility in Kalundborg, Denmark, enables a fivefold increase in marine ingredient production capacity for the Danish company, which converts industrial CO2 emissions into microalgae for cosmetics. The move marks the company’s shift from pilot-scale testing to industrial-scale supply for marine ingredients that are not reliant on fish-dependent supply chains.

According to Algiecel, global fish oil supplies are under acute strain. According to the International Fishmeal and Fish Oil Organization, cumulative fish oil supply across the leading production regions was approximately 31% lower than 2025 levels in early June 2026, year-to-date.

The company also emphasizes the unusually strong 2026–2027 El Niño event — a natural climate pattern that causes the surface waters in the central and eastern Pacific Ocean to become unusually warm — as a threat to biodiversity and, subsequently, to supply chains.

“The [El Niño] phenomenon has historically pushed fish oil prices to record highs,” says Algiecel.

Fish oil is often utilized as an ingredient in cosmetic products for its hydration and barrier-protecting properties. Algiecel states that the supply chain volatility resulting from El Niño is heightening demand for a marine ingredient source that doesn’t depend on the ocean.

Ricardo Daura Garcia, chief commercial officer at Algiecel, tells Personal Care Insights that fish-dependent ingredient supply chains cause risks for biodiversity, marine ecosystems, and local communities. He says that the company’s new facility helps reduce reliance on increasingly constrained natural resources.

Algiecel is scaling microalgae production for cosmetic applications.

“Ecological risk and supply risk go hand in hand. Growing a marine ingredient under controlled conditions means supply no longer depends on the ocean. For personal care brands, that is becoming a sourcing decision as much as a sustainability one,” explains Daura Garcia.

Algiecel’s moves to mitigate climate change-related supply chain strains emphasize the climate’s direct impact on the beauty industry. As overfishing for beauty feedstocks contributes to knock-on biodiversity and climate degradation, the deterioration of the climate poses supply chain issues for the industry in return, highlighting the cyclical nature of resource-intensive beauty production.

Scaling fish-source alternatives 

Daura Garcia tells us that the new facility is used to cultivate the microalgae Nannochloropsis oceanica in compact, modular photobioreactors, using artificial light, water, and captured CO2. The facility’s new photobioreactor has a total volume of 5,500 liters, with 3,240 liters used to actively grow the microalgae, compared with 700 liters in its pilot system, increasing the production capacity from the pilot almost fivefold. 

“[The photobioreactor] is directly connected to the CO2 supply of an operational biogas plant on the same site, turning captured CO2 seamlessly into high-value nutrients, demonstrating that the process works with real industrial inputs, not only in a laboratory,” says Daura Garcia.

The photobioreactors’ design scales by adding identical modular units rather than re-engineering a single larger system, allowing the company to expand without having to invest large sums in re-engineering the system for size.

“The Kalundborg facility is a scale model. It will be used to scale our first large-scale commercial facility, using this validated footprint… Further capacity can follow customer demand far more precisely,” says Daura Garcia.

The company expects to produce 12 tons of biomass annually from 2027 for the pet food and cosmetics sectors as it transitions from sample-volume production to recurring commercial supply. 

According to Algiecel, the global omega-3 market was valued at approximately US$3.3 billion in 2026 and is forecast to reach US$5.4 billion by 2033. The company says that the industry is increasingly seeking marine ingredient sources decoupled from wild-catch volatility. 

“The ocean has reached its limit”

The new facility turns captured CO2 into marine ingredients.

The move away from fish-dependent marine ingredients provides an avenue for respite for marine ecosystems while alleviating cosmetic supply chain strains. Daura Garcia stresses the potentially fatal importance of preserving biodiversity and marine ecosystems. 

“Global fishmeal and fish oil production has stayed flat for over 20 years, capped by catch quotas and by what wild stocks can sustain, while fish oil prices have climbed sharply,” he says.

“Pushing catches higher would come at a direct cost to nature: the UN’s global biodiversity assessment found that fishing has done more damage to marine biodiversity over the past 50 years than any other human activity, with a third of the world’s fish stocks already harvested at unsustainable levels.”

Daura Garcia explains that the already suffering ocean systems face an imminent threat of possibly catastrophic proportions with the strengthening El Niño event. 

“The World Meteorological Organization expects the current El Niño to strengthen into a very strong event, with a nearly 100% likelihood that it will persist through February 2027. For marine ingredients, the impact is not a forecast. It is already here,” he says.

“Peru supplies around 20% of the world’s fishmeal and fish oil in an average year. This year, it set its lowest anchovy quota in a decade, then halted its main fishing season early, leaving more than a million tonnes uncaught. Fishmeal prices have hit record highs.” 

He tells us that these outcomes create a particular challenge for personal care, where producers tend to buy smaller quantities than other industries, such as human and pet nutrition or aquafeed. “When supply tightens, the smallest buyers have the least leverage on price and allocation.”

Microalgae can reduce reliance on fish-derived cosmetic ingredients.

“Our facility does not replace fishery, but it proves that a marine ingredient can be produced industrially, from captured CO2, without depending on the temperature of the Pacific. For a formulator, that means the same supply in an El Niño year as in any other.”

Microalgae applications

According to Daura Garcia, microalgae ingredients are especially valuable in cosmetics for their compatibility with multifunctional applications. “That is where Nannochloropsis oceanica stands out,” he says.

“We provide the biomass into two fractions, each with its own profile and functionality. The oil-soluble fraction is a strong fit for antioxidant protection and skin barrier support. The water-soluble fraction carries protein derivatives, polysaccharides, and minerals, suited to hydration and skin conditioning.”

“Together, the two fractions cover the benefits formulators ask for most: barrier support, antioxidant protection, hydration and radiance, with scalp care as a natural next step. They also fit the move toward shorter ingredient lists, where every ingredient has a clear job.”

Daura Garcia tells us that brands are already moving to use algae-derived actives. However, he says that while brands have faith in the ingredients’ efficacies, a lack of reliable supply at scale holds them back from further adoption.