Clean Food Group has acquired a fermentation facility in Liverpool with one million liters of capacity, giving the UK startup a major step forward in its effort to commercialize yeast-derived oils for food, cosmetics, pet food, and personal care markets. The site was purchased from Algal Omega 3 Ltd after the company entered administration earlier this year, creating an opportunity for Clean Food Group to secure large-scale infrastructure without undertaking a costly new build. The deal signals a shift from pilot development toward broader industrial deployment as the company looks to expand output and prepare for the next phase of growth.
Strategic Acquisition
The Liverpool facility provides Clean Food Group with established fermentation assets that can support production at a scale far beyond early-stage trials, helping reduce both execution risk and capital requirements. According to the company, production has already been validated at the site in 100,000-liter reactors, with a recent fermentation run yielding two tons of oil. That prior work gives the business confidence that the site can support its process in a commercial setting rather than remaining an untested manufacturing bet.
The plant also brings operational advantages beyond tank capacity, including infrastructure suited to the company’s full production process and downstream capabilities for extracting oil from yeast cells. Clean Food Group said the site is equipped to carry out a solvent-free wet extraction method, an important feature as it moves from development into scaled manufacturing. Industry executive Bill Thurston, known for his leadership in edible oils and fats, has been appointed managing director of the facility, adding experienced oversight as the company integrates the asset into its growth plans.
Regulatory and Commercial Pathway
The acquisition comes as Clean Food Group works through regulatory and market entry milestones for its oil platform, beginning with cosmetic applications. Its CleanOIL25 ingredient has already received regulatory approval for use in cosmetics in the European Union, the United Kingdom, and the United States, giving the company an initial route to revenue while broader approvals are pursued. For food uses, the business is preparing submissions for Europe and the US, where regulatory reviews are expected to take longer but may be somewhat simpler because the company is not using genetically engineered yeast strains.
Technology and Product Development
The company’s technology originated at the University of Bath and was licensed to Clean Food Group in early 2022, with Professor Chris Chuck now serving as technical lead. The platform relies on directed evolution to develop proprietary oleaginous yeast strains that accumulate more oil as a proportion of their biomass. A central part of the commercial proposition is the ability to tailor fatty acid profiles, allowing the same biological platform to produce oils with characteristics ranging from liquid formats to semi-solid fats and more saturated hard-fat equivalents.
Market Positioning
Clean Food Group is entering a sector where several microbial oil companies have had to confront the difficult economics of competing directly with low-cost commodity fats and oils. Rather than positioning its products as simple replacements for broadly traded ingredients, the company is targeting higher-value applications where tailored functionality, sustainability claims, and supply-chain resilience can justify a premium. Its first launch product has been developed with THG LABS and Croda for cosmetics, reflecting a strategy focused on performance-led formulations instead of trying to displace mainstream bulk oils.
The company argues that this approach is particularly relevant in categories affected by environmental scrutiny and sourcing volatility, including palm oil, coconut oil, animal fats, and cocoa butter. With around £8 million raised so far from investors including Agronomics and Döhler, alongside non-dilutive funding, Clean Food Group is now preparing for a Series A round to support its next stage of expansion. By combining an acquired industrial base, an adaptable yeast-oil platform, and an initial focus on specialty markets, the business is seeking to prove that microbial oils can succeed first where differentiation matters most.