UK biotech startup Clean Food Group has announced a significant financial milestone, securing £4.5 million ($6.1 million) in new funding alongside a substantial £700,000 ($950,000) grant from the UK government. This capital injection is earmarked for the aggressive expansion of its production capabilities for sustainable yeast-derived fats, a move poised to disrupt the global food and personal care industries by offering viable alternatives to environmentally detrimental ingredients like palm oil.
The investment round was spearheaded by prominent venture capital firms Clean Growth Fund and New Agrarian, with continued support from existing investors Seed Innovations and D&Seler Group. The non-dilutive grant from Innovate UK, the national innovation agency, underscores the strategic importance of Clean Food Group’s mission to the UK’s green economy objectives.
This influx of capital is specifically allocated to finalize the scale-up of Clean Food Group’s Knowsley facility. The company acquired this site last year from Algal Omega 3, a microalgae oil producer, as part of a strategic move to rapidly increase its manufacturing capacity. The accelerated commercialization of its fermentation-derived palm oil alternatives is now a primary focus, driven by the growing global demand for sustainable and ethically sourced ingredients.
Tom Ellen, Co-founder and CFO of Clean Food Group, expressed optimism about the company’s trajectory. "The support of our new investors, together with the Innovate grant, represents a strong endorsement of Clean Food Group’s significant progress and the scale of the opportunity ahead," Ellen stated. "The capital raised will enable the company to bring on stream the world’s largest yeast-derived oils and fats facility, and to deliver on our long-term vision for sustainable food manufacturing."
Scaling Production: The Knowsley Facility at the Forefront
The Knowsley facility, now central to Clean Food Group’s expansion plans, is set to become the cornerstone of its global production efforts. This strategic acquisition provides the company with a significant fermentation capacity, essential for meeting the anticipated demand for its innovative products. The facility’s transformation from its previous use to a state-of-the-art fermentation plant signifies a crucial step in the company’s roadmap.
Clean Food Group’s technological foundation is deeply rooted in extensive research conducted at the University of Bath. Co-founder and technical lead Professor Chris Chuck spearheaded a decade-long research initiative, which received approximately £7.5 million in prior UK government funding. This foundational work laid the groundwork for the company’s proprietary CleanOil platform.
The CleanOil platform operates by cultivating non-GMO yeast strains on circular feedstocks, such as surplus bread and other food industry byproducts. Through a precise fermentation process, these yeasts are transformed into high-performance oils and fats that serve as direct replacements for conventional tropical fats like palm and coconut oil, as well as petroleum-based mineral oils. This innovative approach not only addresses environmental concerns but also offers a more resilient and predictable supply chain.
A Diversified Product Portfolio for Multiple Industries
The CleanOil platform has already yielded a range of products designed to achieve price parity with their conventionally farmed counterparts, a critical factor for widespread industry adoption. These include:
- CleanOil 40: Formulated for applications in confectionery and spreads, offering a sustainable alternative for sweet treats and breakfast staples.
- CleanFat 50: Tailored for the bakery and dairy sectors, providing improved texture and stability in a variety of baked goods and dairy-based products.
- Clean Protein+: An emulsifier designed for use in products like mayonnaise and pet food, enhancing texture and stability.
The company’s debut ingredient, CleanOil 25, has been specifically developed as a base for sustainable products within the skincare, haircare, and broader personal care categories. This ingredient was co-developed through a strategic partnership with THG Labs, the product development division of UK e-commerce giant THG, and specialty chemicals firm Croda. This collaboration, initiated in October 2024, highlights the growing interest from major industry players in sustainable ingredient solutions.
A Proven Track Record and Global Ambitions
Clean Food Group’s fermentation technology and manufacturing processes have undergone rigorous validation at scale. In 2025, the company successfully completed a substantial 60,000-litre production run, yielding two tonnes of its proprietary oils. This achievement was supported by D&Seler Ventures, further validating the scalability and viability of the CleanOil platform.
The subsequent acquisition of Algal Omega 3’s Knowsley site, boasting a one-million-litre fermentation capacity, was a transformative event. This acquisition, complementing the company’s existing demonstration plant in Ledbury, positions Clean Food Group as the world’s largest manufacturer of yeast-derived fats.
Rodrigo Hortega de Velasco, Managing Partner at D&Seler Ventures, commented on the significance of this development. "Clean Food Group has consistently demonstrated both the strength of its technology and the commercial potential of its sustainable oils and fats platform," Velasco stated. "The acquisition of the Knowsley facility marks a significant milestone, enabling production at a scale that brings these innovative products closer to widespread commercial reality."
Addressing Supply Chain Fragility and Deforestation Concerns
Clean Food Group’s mission is intrinsically linked to addressing some of the most pressing environmental and ethical challenges within global supply chains. Palm oil, a ubiquitous ingredient found in approximately half of all supermarket products and accounting for 40% of global oil production, is a primary focus. Its widespread cultivation has been directly linked to rampant tropical deforestation, habitat destruction, and significant greenhouse gas emissions, particularly in Indonesia and Malaysia.
The impending enforcement of the EU’s Deforestation Regulation, scheduled for December after several delays, is set to impose strict import bans on products linked to deforestation. Violators face substantial fines, potentially up to 4% of their global turnover. Current estimates suggest that a significant portion of palm oil imports may originate from deforested land, underscoring the urgency for sustainable alternatives.
Clean Food Group has proactively secured regulatory approval to market CleanOil 25 for cosmetic use in key markets including the UK, the EU, and the US. The ingredient has already been showcased at prominent industry events, such as the In-Cosmetics Global show in Paris (April 14-16), signaling its readiness for market entry.
Jim Mellon, Chairman and Founder of New Agrarian, highlighted the broader implications of Clean Food Group’s work. "Supply chain fragility is one of the defining risks of our time. War, climate volatility, and trade disputes are presenting a huge challenge to manufacturers; the ingredients we assumed would always be available are no longer guaranteed," Mellon remarked. "Clean Food Group is addressing this problem head-on, using scalable science and technology to build genuine resilience and sustainability into the way we produce and source key ingredients used in everything from food to cosmetics. For me, this sits at a rare intersection: a compelling investment case and a genuine solution to one of the most pressing challenges of our generation."
The Rise of Fermentation-Derived Fat Alternatives
Clean Food Group operates within a rapidly expanding sector of companies developing fermentation-derived fat alternatives. This burgeoning field offers innovative solutions to meet growing consumer and regulatory demands for sustainable and ethical ingredients. Other notable players include:
- Savor (California, USA): This company produces carbon-based fats designed to replace butter and tropical oils like palm.
- Süßio (Estonia): Utilizing upcycled industry byproducts, Süßio creates tropical fat alternatives through precision fermentation.
- Melt&Marble: This firm specializes in producing "designer fats" via precision fermentation, offering alternatives to both animal and plant-based fats.
The success of Clean Food Group, bolstered by significant investment and government support, signifies a pivotal moment in the transition towards a more sustainable and resilient global ingredient supply chain. As regulatory pressures mount and consumer awareness grows, the demand for innovative solutions like those offered by Clean Food Group is expected to accelerate, paving the way for a greener future in food and personal care manufacturing. The company’s strategic expansion and product development are poised to play a crucial role in this industry-wide transformation.