An algae-derived ingredient that can displace petroleum wax


“In response to the global climate crisis, 82% of the cosmetic industry has adopted UN Sustainability Goals 12 & 13 to reduce their CO2 footprint and use nontoxic ingredients.” — Daniella Zakon, Upwell Materials

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Dear seaweed and microalgae investors, buyers, operators, and technologists, welcome to another edition of the Paxtier Report!

Food for thought this week…

Introducing ocean start-up spotlight!

The rules are simple:

1) I ask an ocean entrepreneur rapid-fire questions.
2) You comment below if you’re in or out.

This week’s start-up is making an algae-derived ingredient that can displace petroleum wax. Here’s Daniella Zakon explaining Upwell Materials for you:

1. Name of business 

Upwell Materials 

2. Your business in 1 sentence 

Clean ocean-derived ingredients that can change the products you use every day. 

3. The problem that you are solving 

  • In response to the global climate crisis, 82% of the cosmetic industry has adopted UN Sustainability Goals 12 & 13 to reduce their CO2 footprint and use nontoxic ingredients.

  • 8 conglomerates representing $97bn in the beauty space have promised to reformulate using sustainable ingredients and green chemistry.

  • All brands, big and small, are racing to find sustainable ingredients.

  • Upwell’s mission is to make these ingredients.

4. Your specific solution to the problem 

  • Our microalgae are grown in sustainable closed-loop bio-reactors that require 1/10th the land area of land crops, a fraction of the water, and are 5-10 times more efficient at absorbing CO2 than land plants.

  • Upwell adheres to the ACS’s 12 Principles of Green Chemistry to make sure our clean ingredients are extracted sustainably and without harmful chemicals.

  • Upwell’s first suite of products are derived from microalgae and target some of the largest ingredient segments in personal care including humectants (moisturizers) and waxes.

5. How will you make money? 

  • Upwell has a very lean operating model with all algae manufacturing and ingredient production outsourced to best-in-class providers.

  • 3-pronged sales strategy: direct to brands, through contract manufacturers and national distributors.

  • Targeting profitability in 2026 on $5mn in sales.

7. If we invested $1M in the business, how would you use the money?

  • Continue to scale up production.

  • Finish humectant R&D and testing.

  • Humectant commercialization with significant sales expected for 2025.

  • Finalize initial product collaborations for the launch of the natural wax and butter in early 2025. 

  • Continue to look for gaps in the cosmetic ingredient market and expand our ingredient portfolio. 

Learn more about Upwell’s investment executive summary here.

Hope you enjoy!

Have a great day folks.

— Peter

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In today’s report…

Markets: 🐮 Japan’s Koasa Group is currently facing inquiries from the Korean government for allegedly stockpiling seaweed.

Deals: 🤝 Maruha partners with Canada’s Mara Renewables to market algae-derived omega-3 in Asia, expanding health product lines.

Movers and Shakers: 🌿 Mars to commit $47 million over the next three years in climate-smart dairy farming practices.

Around the web: 💡Australian Carbon Credit Units (ACCUs) one step closer for Aussie farmers using Asparagopsis.

Markets and Investing

✂️Market Snippets

Some big moves in recent weeks

Seaweed

🌿 Northland Regional Council in New Zealand estimates $100M needed for the removal of invasive Caulerpa algae (Read more HERE).

💸 BioMara is raising £2 million to scale up seaweed processing in Scotland, aiming to support local farmers and boost the seaweed sector (Read more HERE).

💸 Korean seaweed company ShunyTech secures investment for eco-friendly seaweed seed farming (Read more HERE).

🤝 Marinomed Biotech AG secures licensure with a leading consumer health care player for the distribution of Carragelose® products in Europe (Read more HERE).

📈 Seaweed Bath Co. expands its natural beauty influence by acquiring Andalou Naturals and Mineral Fusion (Read more HERE).

📈 Atlantic Sea Farms, a seaweed farming company in Biddeford, doubled its harvest from last year and has more “partner farmers” and retail outlets than ever (Read more HERE).

💸 Mars to commit $47 million over the next three years in climate-smart dairy farming practices, featuring support of seaweed feed supplements (Read more HERE).

📈 YangMyeong Co., Ltd. in Korea announces plans for a new dried seaweed plant at Gunsan Saemangeum Seafood Export Processing Complex (Read more HERE).

💸 Cold Current Kelp, a vertically integrated kelp farming company has been awarded a grant of $175,000 to help the company’s research into the use of kelp extracts for skincare (Read more HERE).

🌿 Sanitarium introduces new line of superfood plant-based milks enriched with algae (Read more HERE).

📈 Essentra, a global manufacturer of essential industrial components, advances trial of bioplastic alternatives to reduce environmental impact (Read more HERE).

📈 Bioprime Agrisolutions has announced the completion of trials for its seaweed-based formulation BioPrime Fortisea in the US (Read more HERE).

🌿 Kelp Blue secures 15-year kelp cultivation licence (Read more HERE).

🌍 Maroon Invest Global and Maroon Venture Fund announce the Women’s Catalytic Climate Fellowship 2024, supporting up to 4 ventures focused on impactful climate solutions in health and environmental sustainability (Learn more HERE).

🌿 Scottish seaweed crisps now available on major supermarket shelves (Read more HERE).

🌿 Japan’s Koasa Group is currently facing inquiries from the Korean government for allegedly stockpiling seaweed, which is thought to be causing significant price increases (Read more HERE).

🌊 Nordic cohort to develop biodiversity credit methodology for the offshore wind sector in the Baltic Sea (Read more HERE).

🌿 Australian Carbon Credit Units (ACCUs) one step closer for Aussie farmers using Asparagopsis (Read more HERE).

🌿 Haeckels introduces the new Seaweed Solar Protect SPF50+, made with Palmless™ technology, designed to enhance skin resilience (Read more HERE).

Microalgae

🛞 Tyre manufacturer reTyre will unveil what it claims to be the world’s first carbon-neutral tyre made from algae at Eurobike 2024 (Read more HERE).

💸 Become a Co-owner of Aliga microalgae: investment opportunity unveiled (Read more HERE).

📈 Fermentalg achieves a historic first half-year with sales reaching €6.3 million, bolstered by a strategic partnership with HuvePharma (Read more HERE)

📈 Vinpai announces 28% growth in revenue in the first half of 2024, reaching €5.1 million (Read more HERE).

💸 TEDCO-backed biotech firm Phycin raises $200k to advance algae development (Read more HERE).

🟢 Organic Basics launches the world’s first intimates collection made with biodegradable algae-based dye (Read more HERE).

🤝 Nike adopts algae-based ink for eco-friendly decoration of ISPA shoeboxes (Read more HERE).

🤝 Origin by Ocean teams up with Keep the Archipelago Tidy Association to transform harmful blue-green algae from the Baltic Sea into valuable raw materials (Read more HERE).

🤝 Maruha partners with Canada’s Mara Renewables to market algae-derived omega-3 in Asia, expanding health product lines (Read more HERE).

🔬 NTT and Euglena Co. achieve a breakthrough in algae breeding using neutron beam irradiation, a first in the world (Read more HERE).

🟢 WNDR Alpine introduces new line of bio-based outdoor gear (Read more HERE).

🟢 Ethiopia launches first-ever spirulina research and production centre to reduce imports (Read more HERE).

💸 CYANOPHY Laboratoire SAS announces EUR 30 million bond issuance to boost ecological innovation (Read more HERE).

Share

🐦Tweets of the week

🔥 What else was hot in seaweed and microalgae this week?

Seaweed

🌿 INTAKE’s meat substitute knowhow now aims at salmon, tuna (Read more HERE).

🌿 Could limu power future biorefineries? UH project explores (Read more HERE).

🌿 Kenya’s coastal communities turn to seaweed farming, transforming livelihoods and boosting local economies (Read more HERE).

🌊 Japan looks to ‘blue carbon’ to cut emissions — and restore its coasts (Read more HERE).

🌿 Underwater gardeners work to restore B.C.’s crucial kelp forests (Read more HERE).

🌿 Study reveals co-farming shrimp with oysters and seaweed reduces nitrogen output (Read more HERE).

🌿 The bizarre case of the Canadian multinational, the Irish semi-state seaweed company, and the 10-year confidentiality agreement (Read more HERE).

🌿 Navigating the tides: Small-holder farmers charting the future of seaweed farming (Read more HERE).

🌿 Startup Uncracked is unlocking seaweeds’ clean-label potential with proprietary SeaStack technology (Read more HERE).

💡 (Paper) The potential climate benefits of seaweed farming in temperate waters (Read more HERE).

🎉 Re:Right debuts seaweed bioplastic pavilion for Glastonbury festival (Read more HERE).

🌊 New protocol for subsurface biomass carbon removal and storage introduced by Isometric (Read more HERE).

🌿 These period pads solidify blood to prevent leaks (Read more HERE).

🌿 Innovators enhance Indonesia’s pond-based seaweed cultivation and processing (Read more HERE).

🌿FT Analysis: Climate tech explained: methane inhibitors (Read more HERE).

Microalgae

🟢 Jessica Thies unveils ‘Synthiesis’ footwear line, integrating sustainable materials and innovative design (Read more HERE)

📈 Brevel, which creates neutral protein powder from fermented algae, intends to produce hundreds of tons of protein each year (Read more HERE).

🤝 Biotect Thailand collaborates with Sarawak Biodiversity Centre to study algae’s antimicrobial properties (Read more HERE).

🟢 Indonesia leverages microalgal biotechnology to create high-value products, enhancing its bioeconomy (Read more HERE).

🟢 New study illuminates how algae perceive and respond to environmental cues, enhancing understanding of aquatic ecosystems (Read more HERE).

⛽ Algae biofuel sector gets renewed interest, with startups and established companies exploring its potential (Read more HERE).

🟢 Skretting to offer breakthrough algal oil for aquaculture, promising enhanced sustainability in fish feeds (Read more HERE).

⛽ Biofuel produced from CO2-captured microalgae showcased at University of Antioquia (Read more HERE).

🟢 Making lab-grown meat more sustainable (Read more HERE).

💡 (Paper) A chromosome-level genome assembly for the paramylon-producing microalga Euglena gracilis (Read more HERE).

🟢 KAS CEO Claude Kaplan eyes Northern Europe for a new astaxanthin manufacturing plant, aiming at local production efficiency (Read more HERE).

🟢 UL Lafayette researcher to use hyperspectral satellites to study phytoplankton in Gulf (Read more HERE).

🟢 Training AI to detect harmful algal blooms enhances monitoring capabilities (Read more HERE).

💡 (Paper) Improvement of Bacillus subtilis PI agarase production, hydrolysate scavenging capability assessment, and saccharification of algal biomass for green ethanol generation (Read more HERE).

Refer a friend

That’s all folks!

Thanks again for joining us this week. If you think we’ve missed something worth highlighting – drop us a line below or via LinkedIn. Hope you have a great day and stay tuned for more seaweed and microalgae updates soon!

Best,

Peter



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