DSM and Evonik to build an algal oil plant at commercial-scale in USA
Royal DSM and
Evonik announced last week their
intention to establish a joint venture for omega-3 fatty acid products from
natural marine algae for animal nutrition (see press
release). Its name will be VeramarisTM and will have its
headquarters in The Netherlands. The companies will together build a
commercial-scale production facility in the United States.
The problem and the
proposed solution
Worldwide fish oil production is approximately
one million metric tons per year. Most of the fish oil is used in aquaculture,
mainly for fat-rich fish species, such as salmon. Fish from wild capture cannot
longer meet rising global demand and most salmon is now farmed in aquaculture. Salmon
require specific omega-3 fatty acids for healthy growth. Those essential
elements are contained in fish oil which is mixed into the salmon feed. And obviously,
the fish oil is produced from fish. The limited wild fish stocks restrict the
amount of fish oil available and, therefore, the growth of the aquaculture
industry.
Figure 1. DSM and Evonik breakthrough –
shortening the food chain (extracted from the presentation: “DSM
and Evonik establish joint venture for omega-3 fatty acids from natural marine
algae for animal nutrition”, Bergen, Norway – 8 March 2017)
DSM and Evonik have proposed a solution to this
problem: obtaining omega-3 fatty acids from natural marine algae. It is a
sustainable non-fish alternative. The algal oil means that the vision of salmon
farming without using fish-based resources is becoming realistic. By replacing
fish oil in salmon feed with this EPA and DHA rich alternative, DSM and Evonik will
enable the aquaculture industry to continue to grow sustainably.
A short reminder about omega-3 fatty acids
They are a family of polyunsaturated fats,
including eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA). Because
they are not produced naturally by the body, they must be obtained from the
diet or through supplementation. A large and growing body of evidence shows
that sufficient levels of EPA and DHA support brain, eye and heart health in
multiple species, including humans.
Joint development
between DSM and Evonik
The joint venture is the continuation of a joint
development agreement signed in July 2015. Under this agreement, DSM and
Evonik have jointly worked on the development of products and the manufacturing
process and explored opportunities for commercialization. Both companies
achieved positive results in the development of the product while extensively
working with the entire value chain, including fish feed producers, fish
farmers and retailers.
They have successfully produced pilot-scale
quantities of the algal oil at DSM’s production facility in Kingstree (South
Carolina, USA). The achievements in the product and process development were
only possible thanks to the complementary competencies of DSM (cultivation of
marine organisms and biotechnology capabilities) and Evonik (development of
industrial biotechnology processes and operation of fermentative systems).
The commercial
facility
DSM Nutritional Products and Evonik Nutrition
& Care will each hold a 50% share in the joint venture and co-own the
production facility, which will be built at an existing site of Evonik and is
expected to come on stream in 2019. The joint venture plans to invest around USD
200 million in the facility (USD 100 million by each party over circa 2 years).
The initial annual production capacity will meet
roughly 15% of the total current annual demand for EPA and DHA by the salmon
aquaculture industry. Customers will be able to receive sizeable quantities of
the product (from the pilot plant) for market development while the
construction of the new manufacturing plant is underway.
