Scottish biotech firm MiAlgae has begun building a large-scale plant in Grangemouth to expand production of fish-free, microalgae-derived Omega-3 oils, targeting surging demand from the pet-food and aquaculture sectors for sustainable, clean-label ingredients.

The new facility, due to come online in early 2026, is expected to lift MiAlgae's pet-nutrition Omega-3 output by more than tenfold. The company says this will help manufacturers add premium DHA to dry and wet foods as well as supplements without depending on wild-caught fish oil. MiAlgae projects the expansion could displace marine-sourced Omega-3s on a scale it estimates would save up to six billion fish a year, recycle 36.1 million litres of whisky by-products through its circular process, and, at full scale, support hundreds of new green jobs across biotechnology, engineering and production.

The development is supported by a joint investment of up to £3 million from the UK and Scottish governments. MiAlgae's process upcycles by-products from Scotland's whisky industry to cultivate microalgae naturally rich in DHA, an essential fatty acid linked to pets' skin and coat health, cognition, joint mobility and immunity. The company's product is fully traceable, vegan and low carbon, aligning with consumer expectations for transparency and sustainability in pet nutrition.

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Douglas Martin, Founder and CEO of MiAlgae, said: "Breaking ground at Grangemouth marks an exciting new chapter for MiAlgae. Our mission has always been to make a meaningful impact, tackling overfishing, reducing waste, and creating sustainable value from industrial by-products. This new facility is a huge step towards delivering that mission at scale, bringing new, high-quality green jobs to the local area, and helping Scotland lead the way in this exciting new biotech industry."

Designed with modular scalability, the plant will allow MiAlgae to ramp capacity in line with demand from pet-food and aquaculture brands. Proximity to key feedstock suppliers and major customers is intended to underpin a lower-carbon supply chain serving manufacturers across the UK, EU and US.

MiAlgae's investment sits within Project Willow, the Scottish Government initiative to turn Grangemouth into a centre for green technologies. Energy Minister Michael Shanks said: "Today we're taking another step forward as we back the first new project at the site, creating hundreds of new, decent jobs and attracting further investment in the area.

"This project, alongside the £200 million of funding pledged from the National Wealth Fund, is part of our clear strategy for Grangemouth's industrial future. A strategy with workers, unions, businesses, and the wider community at its heart."

Jan Robertson, Director of Grangemouth Transition at Scottish Enterprise, said: "It's wonderful to see MiAlgae break ground on its first commercial-scale plant. We've worked with the company since 2016, aiding its ambitious growth with a mix of advisory and funding support. Grangemouth is the perfect location for this innovative Scottish scale-up to grow and prosper, bringing high-quality jobs and supply chain opportunities to the community."

The backing forms part of measures announced by the Chancellor at the Budget, including £14.5 million to help establish Grangemouth as a low-carbon technology hub and create future jobs, alongside the Scottish Government's £25 million Grangemouth Just Transition Fund to support investible proposals for the site. This sits in addition to the £200 million previously pledged by the Prime Minister from the National Wealth Fund to unlock the area's potential.

Founded in 2016 and headquartered in Edinburgh, MiAlgae develops alternatives to marine-sourced Omega-3s by using whisky-industry by-products to grow Omega-3-rich microalgae. The company aims to protect ocean resources while enabling high-quality nutritional ingredients for aquaculture, pet food and other markets, advancing Scotland's circular bioeconomy.