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UK food-tech company Clean Food Group (CFG) has acquired the assets of algal oil producer Algal Omega 3 out of administration, including a 1 million-litre capacity fermentation facility.

CFG, a producer of sustainable alternatives to tropical oils, said the acquisition will position it as the ‘world’s largest’ manufacturer of yeast fermentation-derived oils and fats.

The transaction follows Algal Omega 3’s appointment of administrators from Interpath Advisory earlier this year after struggling with rising production costs and increased competition in the international market, leaving the business unable to retain key contracts.

The deal includes a 12-acre site in Knowsley, Liverpool city region, equipped with extensive R&D facilities and offering significant expansion opportunities for the group.

CFG confirmed it has already validated commercial-scale production at the site, manufacturing two tons of oil in a recent fermentation run. This materially de-risks the acquisition, CFG said, proving its ability to scale in existing facilities without costly new-build infrastructure.

The acquisition will enable CFG to significantly reduce the capex required to supply sustainable oils and fats at competitive price points to agricultural equivalents across the food, cosmetics and pet food markets.

Bill Thurston, former managing director of Dawn Foods, CSM Bakery and CFG NED, has been appointed managing director of the Knowsley facility. His extensive oils and fats experience includes leading the acquisition of Unilever’s edible oils and fats business as CEO of CSM. Thurston will lead a senior manufacturing team on-site to oversee operations and integration with immediate effect.

Alex Neves, CEO of CFG, said: “With this acquisition, we have fast-tracked our route to market, leapfrogging the traditional, capital-intensive path from pilot to demo to new build commercial plant – which can take years and cost upwards of $100 million”.

He added: “With commercial-scale validation already established at our new Knowsley facility, Clean Food Group is ready to capitalise on the $20 billion market opportunity ahead, and to advance its planned Series A funding round, now expected for H1 2026”.