Clean Food Group has successfully raised £4.5 million to enhance its fermentation plant in Merseyside, positioning itself as the leading global manufacturer of yeast-derived sustainable oils and fats. This funding comes shortly after the acquisition of a 12-acre factory site in Knowsley, which significantly boosts the company’s production capacity to one million liters.
Funding Sources and Goals
The recent investment round was spearheaded by Clean Growth Fund and New Agrarian, both well-regarded in the cleantech sector. Additionally, Clean Food has been awarded a £700,000 grant from Innovate UK, which will support its working capital needs. The capital raised will facilitate the completion of the Knowsley facility’s scale-up, enhance production capabilities, and expedite the commercial rollout of its palm oil alternative.
The Vision for Sustainable Manufacturing
CFO Tom Ellen expressed enthusiasm about the backing from Clean Growth Fund and New Agrarian, highlighting their reputations in sustainable food and industrial biotechnology. He noted that this funding represents a strong validation of Clean Food Group’s advancements and the immense potential ahead. The company aims to operationalize the largest facility for yeast-derived oils and fats, contributing to its long-term vision of sustainable food manufacturing.
Addressing Supply Chain Fragility
Jim Mellon from New Agrarian emphasized the growing risks associated with supply chain fragility, exacerbated by geopolitical tensions, climate change, and trade disputes. He believes that Clean Food Group is tackling these challenges effectively through scalable science and technology, fostering resilience and sustainability in the production and sourcing of essential ingredients across various industries, including food and cosmetics.
Stakeholder Participation
The funding round attracted participation from existing shareholders, including institutional investor Seed Innovations and industry ally Döhler Group. Mellon, who is also the non-executive chairman of Seed Innovations and a significant investor in the lab-grown meat sector through Agronomics, holds a combined stake of approximately 36% in Clean Food Group alongside New Agrarian and Agronomics.
Strategic Milestones
Rodrigo Hortega de Velasco, managing partner at Döhler Ventures, commented on the acquisition of the Knowsley facility, marking it as a crucial milestone for the company. The scale of production enabled by this facility will bring Clean Food’s innovative products closer to commercial viability.
Conclusion
Clean Food Group’s recent funding efforts underscore a proactive approach to sustainability and resilience in food manufacturing. By leveraging innovative fermentation technologies, the company is set to play a pivotal role in transforming supply chains for essential ingredients. This venture not only addresses pressing industry challenges but also lays the groundwork for a more sustainable future in food production.
- Clean Food Group has raised £4.5 million to scale its sustainable oils production.
- The company is now the world’s largest producer of yeast-derived oils and fats.
- The funding will enhance production capabilities at the newly acquired Knowsley facility.
- Investors include Clean Growth Fund, New Agrarian, and existing shareholders.
- Clean Food aims to address supply chain vulnerabilities with innovative solutions.
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