Source: Phytolipid Technologies
Phytolipid Technologies, a company engaged in oil production using microalgae, has raised 220 million yen in a seed round of funding.
The company plans to use the funds to establish its own facility using microalgae Nannochloropsis and to advance its production technology.
The company plans to establish the facility in the Seto Inland Sea coastal area. It determined that this location is suitable because there are many companies that can provide the carbon dioxide and waste heat required for algae cultivation, and the climate conditions are also favorable.
Phytolipid Technologies was established in 2021 as a venture company certified by Science Tokyo. The company aims to contribute to the reduction of carbon dioxide by effectively utilizing lipids contained in plants and algae using cutting-edge technology.
The microalgae species selected for development is Nannochloropsis, which excels in oil production.
This algae is known to contain EPA, a type of omega-3 fatty acid, and up to 60% oil by dry weight. Among existing microalgae strains, it is considered an ideal model for EPA production due to its high biomass, protein, and lipid productivity, enabling economically viable biorefining processes.
In fact, commercialization of Nannochloropsis-derived oils is already underway overseas.
For example, US-based Qualitas Health sells AlmegaPL, a supplement derived from Nannochloropsis, which is available on Amazon. US company Arizona Algae Products is also manufacturing omega-3 powder and oils using Nannochloropsis at a facility located at an altitude of 1,500 meters in Arizona.
In the EU, oleoresin derived from Nannochloropsis gaditana has been submitted for approval as a novel food (accepted in May 2025), and further expansion into food applications is anticipated.
Phytolipid Technologies possesses technology for high-density cultivation of Nannochloropsis and separate production of useful lipids. At its planned facility, the company aims to produce oils, omega-3 fatty acids, and protein components derived from microalgae for supply to food manufacturers.
The funding round was participated in by Kyoto University Innovation Capital, Leave a Nest CAPITAL, Hiroshima Venture Capital, Focus Incubate, Kyoto Capital Partners, Mitsubishi UFJ Capital, and SMBC Venture Capital.
Phytolipid Technologies previously received 30 million yen in funding from Leave a Nest CAPITAL and Hiroshima Venture Capital in October last year, making this the company’s second funding round.
Hiroshima Venture Capital has been supporting Phytolipid Technologies since the initial investment stage, when the company was considering the Seto Inland Sea region as a potential site for its facilities. The venture capital firm has highlighted the potential for utilizing waste heat and CO₂ resources in the region, as well as its environmental suitability, and has emphasized the social significance of the business and its potential to contribute to regional revitalization.
This article is an English translation of a Foovo article, published with permission from Foovo.