© KAS
Kuehnle AgroSystems (KAS)*, the algal biotechnology company pioneering sustainable production of natural astaxanthin through proprietary dark fermentation technology, has announced the successful close of a multi-million-dollar Series B financing, led by IVC, with continued participation from existing investors S2G Investments and Hatch Blue and new investor Dest EOOD.
The financing will accelerate KAS's transition from technology development to commercial production and sales, including supporting:
- Expansion of research and development capabilities
- Acceleration of the company's strategic development programme with sustainable food-ingredient company Corbion
- Development and validation of salmon feed products
- Global regulatory approvals for aquaculture and human nutrition markets
- Manufacturing scale-up and commercial deployment
The investment follows a landmark technical achievement earlier this year. In collaboration with its manufacturing partner, Biorea, KAS successfully demonstrated – for the first time anywhere in the world – the production of natural astaxanthin in oleoresin using proprietary dark fermentation technology at industrially relevant scale. This breakthrough establishes the technical foundation for a step-change in the cost of production of sustainable, natural astaxanthin.
Global demand for the micronutrient continues to increase alongside salmon production, while the industry seeks more sustainable and resilient ingredient supply chains. KAS's fermentation platform offers the potential to provide premium natural astaxanthin with significantly lower environmental impact, improved supply security and a pathway to substantially lower production costs than conventional cultivation-based methods.
The opportunity ahead is substantial. The global astaxanthin market is valued at around US $2 billion and is forecast to grow at 15 percent annually over the coming decade. Demand is being driven by two powerful trends: the continued expansion of global salmon aquaculture, and rapid growth in the premium nutraceutical market, where natural astaxanthin is increasingly recognised as one of the world's most potent antioxidants. KAS is uniquely positioned to address both high-growth markets through its proprietary dark fermentation platform, and this Series B financing provides the capital needed to accelerate the company's path to commercial production and global market adoption.
"This financing validates both our technology and our commercial strategy," said Dr Claude Kaplan, chief executive officer of Kuehnle AgroSystems, in a press release. "Earlier this year we achieved something many believed impossible – the world's first production of natural astaxanthin oleoresin through dark fermentation. Together with our manufacturing partner, Biorea, and our strategic development partner, Corbion, we have demonstrated that fermentation can become a commercially viable route to producing one of aquaculture's and nutraceutical’s most important ingredients.
This investment enables us to accelerate manufacturing scale-up, expand our commercial partnerships and bring a truly sustainable, reliable and cost-competitive source of natural astaxanthin to the global aquaculture and human nutrition industries."
Strategic partnership with Corbion
A central element of KAS's commercialisation strategy is its strategic collaboration with Corbion, a global leader in algae-derived ingredients and industrial fermentation. The companies are jointly advancing process optimisation, manufacturing scale-up and commercial production, combining KAS's proprietary microalgal technology with Corbion's decades of expertise in industrial biotechnology, large-scale fermentation, regulatory development and global commercialisation of ingredient solutions.
Together, the partners are establishing a robust and globally scalable manufacturing platform that combines innovative strain technology, industrial-scale manufacturing and market access capabilities to supply premium natural astaxanthin to customers worldwide.
"The successful demonstration of natural astaxanthin oleoresin through dark fermentation represents a pivotal milestone" said Yves Boland, chief technology officer of Corbion. "Corbion is delighted to continue working alongside KAS. By combining KAS's innovative biology with Corbion's expertise in strain development, industrial fermentation, product development and global market access, we believe this collaboration has the potential to significantly advance the sustainable production of natural astaxanthin."
As part of the financing, Frode Sandmark, representing IVC, will join the KAS Board of Directors.
"KAS has developed one of the most exciting biotechnology platforms we have encountered in sustainable aquaculture," added Frode Sandmark. "We are delighted to support the company in its next phase of growth and I look forward to joining the Board."
The new financing will enable KAS to expand its scientific and engineering teams, strengthen manufacturing readiness, complete regulatory programmes and engage with leading aquaculture and human nutrition companies as it prepares for commercial launch.
*KAS is one of Hatch Blue’s portfolio companies, but The Fish Site retains editorial independence.
