British startup Clean Food Group has taken a significant step forward in its mission to produce sustainable yeast-derived oils by acquiring the assets of Algal Omega 3, a microalgal oil producer. This strategic acquisition gives Clean Food Group access to a 12-acre site in Knowsley, Liverpool, including one million litres of fermentation capacity. The move positions the company as the world’s largest manufacturer of yeast-derived fats and oils. According to CEO Alex Neves, this acquisition allows the firm to bypass the costly and time-consuming traditional path from pilot projects to commercial plant construction, which often requires years and millions in investment. Instead, Clean Food Group is now able to fast-track its route to market, making its sustainable products available more quickly and efficiently.
The timing of this acquisition is notable. Just two weeks prior, Clean Food Group received regulatory approval for its yeast oils in several major markets. With the addition of the Knowsley site, which is recognized for its biotech excellence and extensive research facilities, the company is well-positioned for future growth. The Knowsley facility joins Clean Food Group’s demonstration plant in Ledbury as a major production hub. The company has already proven its technology at commercial scale by completing a 60,000-litre production run that yielded two tonnes of oil last month, with support from Döhler Ventures. This achievement demonstrates the robustness of Clean Food Group’s platform and reduces risk associated with scaling up production.
Cost Reductions and Commercial Opportunities Drive Expansion
The acquisition of Algal Omega 3’s assets is expected to significantly lower capital expenditure for Clean Food Group. By utilizing existing infrastructure rather than building new plants from scratch, the company can produce sustainable fats at a cost competitive with traditional agricultural oils used across food, cosmetics, and pet nutrition markets. This cost efficiency supports Clean Food Group’s strategy to offer bio-equivalent alternatives without passing high costs onto consumers or businesses.
Local officials have welcomed the company’s decision to establish operations in Knowsley. Tony Brennan, cabinet member for economic development at Knowsley Council, emphasized that the move highlights the region’s skilled workforce and business-friendly environment. He believes that Clean Food Group’s presence will create high-value jobs and position Knowsley at the forefront of biotech innovation in the UK.
To oversee operations at the Knowsley facility, Clean Food Group has appointed Bill Thurston as factory head. Thurston brings decades of experience in oils and fats manufacturing from roles at Dawn Foods and CSM Bakery, where he previously led major acquisitions including Unilever’s edible fats business.
Innovative Technology Promises Sustainable Solutions
Clean Food Group’s production process is built on ten years of research by co-founder Chris Chuck at the University of Bath. Supported by £7.5 million in state funding, this technology uses waste bread as feedstock for non-GMO yeast strains. During fermentation, these strains convert waste bread into sustainable oils that mimic resource-intensive products like palm and coconut oil but with up to 90% lower emissions.
The company’s proprietary Clean OilCell platform enables production of several specialized ingredients designed for different markets. For instance, Clean Oil 40 is suitable for confectionery and spreads; Clean Fat 50 targets bakery and dairy applications; and Clean Protein+ serves as an emulsifier for mayonnaise and pet food. Another product, Clean Oil 25, can be used across industries including food and personal care. Regulatory approval was recently secured for using Clean Oil 25 in cosmetic products across the UK, EU, and US.
To develop these innovative oils for personal care applications, Clean Food Group partnered with THG Labs—the product development arm of British cosmetics giant THG—and specialty chemicals firm Croda. These collaborations have helped ensure that the company’s products meet stringent industry standards while remaining cost-effective.
Looking Ahead: Funding Plans and Market Potential
With commercial-scale validation now established at Knowsley, Clean Food Group is preparing to capitalize on a market opportunity estimated at $20 billion globally. CEO Alex Neves announced that the company plans to launch its Series A funding round in the first half of 2026 to further accelerate growth.
Demand for sustainable alternatives to environmentally harmful tropical fats such as palm and coconut oil continues to rise as companies seek greener supply chains and lower carbon footprints. Regulatory measures like the EU’s deforestation regulation are intended to speed up this shift by restricting imports of deforested palm oil—although implementation has been delayed due to technical challenges.
Clean Food Group’s strategy places it at the center of this transition toward more sustainable ingredients for food, cosmetics, and pet nutrition. By leveraging advanced biotechnology and existing manufacturing infrastructure, it aims to deliver high-quality products that help companies reduce environmental impact while maintaining price competitiveness.
