cbdmt micro algae market and application outlook report - table of content

Microalgae Market and Application Outlook

Date: 19/4/2011

By Philippe Tramoy

Copyright 2011 CBDM.T SARL. All rights reserved. Any unauthorized use or disclosure is prohibited. The information herein was obtained from various sources; we do not guarantee its accuracy or completeness. This research report is prepared for general circulation and is circulated for general information only. It does not have regard to specific investment objectives, financial situations and the particular needs of any particular person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment and trading strategies discussed or recommended in this report and should understand that the statements regarding future prospects may not be realized. Investors should note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Neither the information nor any opinion expressed constitutes an offer to buy or sell any securities or options or futures contracts. CBDM.T SARL accepts no responsibility or liability whatsoever for any expense, loss or damages arising out of or in any way connected with the use of all or any part of this report. CBDM.T SARL does not have long or short position in any securities or options of this issue(s).

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Philippe Tramoy Philippe Tramoy is a market and business intelligence expert and has a background in conducting Research and Business Development projects. He holds a Masters in Finance, a Masters in Intelligence Marketing, an MSc in Biochemistry and an MSc in Genetics & Immunology. In 2000, he joined Rhodia Chirex as Europe Business Development Manager for biotechnology and biopharmaceutical companies. In 2004, he founded CBDMT – Market & Business Intelligence. CBDM.T® is a market and business

intelligence company with offices in France, Switzerland and Israel. As an advisory services

company, CBDM.T® boosts companies to develop revenue and growth by providing business and

marketing services in the life science and biotech markets (market surveys, market scouting,

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Table of Content

Preamble ............................................................................................................................................. 16

Executive Summary ............................................................................................................................. 17

1 Generalities ................................................................................................................................. 18

1.1 Definition ............................................................................................................................. 18

1.2 Characteristics ..................................................................................................................... 19

1.3 History ................................................................................................................................. 21

2 Production technologies ............................................................................................................. 23

2.1 Open Ponds ......................................................................................................................... 24

2.2 Photobioreactors (PBR) ....................................................................................................... 28

2.3 Fermentation Process.......................................................................................................... 34

2.4 Harvesting of microalgae ..................................................................................................... 34

2.5 Analysis ................................................................................................................................ 35

3 Microalgae ................................................................................................................................... 40

3.1 Spirulina ............................................................................................................................... 41

3.1.1 Generalities ................................................................................................................. 41

3.1.2 Production ................................................................................................................... 42

3.1.3 Products ....................................................................................................................... 44

3.1.4 Applications ................................................................................................................. 47

3.1.5 Market ......................................................................................................................... 58

3.2 Crypthecodinium cohnii ...................................................................................................... 60

3.2.1 Generalities ................................................................................................................. 60

3.2.2 Production ................................................................................................................... 60

3.2.3 Products ....................................................................................................................... 60

3.2.4 Applications ................................................................................................................. 61

3.2.5 Market ......................................................................................................................... 61

3.3 Chlorella ............................................................................................................................... 62

3.3.1 Generalities ................................................................................................................. 62

3.3.2 Production ................................................................................................................... 62

3.3.3 Products ....................................................................................................................... 64



3.3.4 Applications ................................................................................................................. 64

3.3.5 Market ......................................................................................................................... 68

3.4 Dunaliella salina ................................................................................................................... 69

3.4.1 Generalities ................................................................................................................. 69

3.4.2 Production ................................................................................................................... 69

3.4.3 Products ....................................................................................................................... 71

3.4.4 Applications ................................................................................................................. 72

3.4.5 Market ......................................................................................................................... 74

3.5 Ulkenia sp. ........................................................................................................................... 76

3.5.1 Generalities ................................................................................................................. 76

3.5.2 Production ................................................................................................................... 76

3.5.3 Products ....................................................................................................................... 77

3.5.4 Applications ................................................................................................................. 78

3.5.5 Market ......................................................................................................................... 78

3.6 Haematococcus pluvialis ..................................................................................................... 79

3.6.1 Generalities ................................................................................................................. 79

3.6.2 Production ................................................................................................................... 79

3.6.3 Products ....................................................................................................................... 80

3.6.4 Applications ................................................................................................................. 81

3.6.5 Market ......................................................................................................................... 81

3.7 Schizochytrium .................................................................................................................... 83

3.7.1 Generalities ................................................................................................................. 83

3.7.2 Production ................................................................................................................... 83

3.7.3 Products ....................................................................................................................... 83

3.7.4 Applications ................................................................................................................. 84

3.7.5 Market ......................................................................................................................... 84

3.8 Aphanizomenon flos-aquae ................................................................................................ 85

3.8.1 Generalities ................................................................................................................. 85

3.8.2 Production ................................................................................................................... 85

3.8.3 Products ....................................................................................................................... 85

3.8.4 Applications ................................................................................................................. 86

3.8.5 Market ......................................................................................................................... 87



3.9 Euglena ................................................................................................................................ 88

3.9.1 Generalities ................................................................................................................. 88

3.9.2 Production ................................................................................................................... 88

3.9.3 Products ....................................................................................................................... 88

3.9.4 Applications ................................................................................................................. 90

3.9.5 Market ......................................................................................................................... 92

3.10 Odontella aurita .................................................................................................................. 93

3.10.1 Generalities ................................................................................................................. 93

3.10.2 Production ................................................................................................................... 93

3.10.3 Products ....................................................................................................................... 93

3.10.4 Applications ................................................................................................................. 93

3.10.5 Market ......................................................................................................................... 94

3.11 Others microalgae ............................................................................................................... 94

3.11.1 Nostoc .......................................................................................................................... 94

3.11.2 Porphyridium cruentum .............................................................................................. 95

3.12 Global market analysis by microalgae ................................................................................. 95

4 By products .................................................................................................................................. 97

4.1 Whole-cell microalgae biomass ........................................................................................... 97

4.2 Microalgae extracts ............................................................................................................. 98

4.2.1 Carotenoids ................................................................................................................. 99

4.2.2 Phycobiliproteins ....................................................................................................... 103

4.2.3 Antioxidants ............................................................................................................... 104

5 Applications ............................................................................................................................... 107

5.1 Food ................................................................................................................................... 108

5.1.1 Functional food .......................................................................................................... 110

5.1.2 Dietary supplements ................................................................................................. 112

5.2 Feed ................................................................................................................................... 115

5.2.1 Used Species .............................................................................................................. 116

5.2.2 Products ..................................................................................................................... 118

5.3 Cosmetics .......................................................................................................................... 120

5.3.1 Players ....................................................................................................................... 122

5.3.2 Market ....................................................................................................................... 123



5.4 Research ............................................................................................................................ 124

6 Applications in development ..................................................................................................... 125

6.1 Energy ................................................................................................................................ 125

6.1.1 Transport biofuels ..................................................................................................... 125

6.1.2 Biogas ........................................................................................................................ 133

6.1.3 Market value.............................................................................................................. 134

6.2 Environment ...................................................................................................................... 137

6.2.1 Water treatment and Soil Detoxification .................................................................. 138

6.2.2 Carbon capture .......................................................................................................... 139

7 New products in development and innovations ....................................................................... 139

7.1 Evolution of the research on microalgae .......................................................................... 140

7.2 Pharmaceuticals ................................................................................................................ 142

7.3 Materials ............................................................................................................................ 143

8 Microalgae Market Players ........................................................................................................ 145

8.1 Spirulina key players .......................................................................................................... 146

8.2 Chlorella key players.......................................................................................................... 149

8.3 Dunaliella key players ........................................................................................................ 150

8.4 Haematococcus key players .............................................................................................. 151

8.5 New development key players .......................................................................................... 152

9 Key players profiles ................................................................................................................... 154

9.1 Cyanotech Profile .............................................................................................................. 154

9.1.1 Company Information ............................................................................................... 154

9.1.2 Company Overview ................................................................................................... 155

9.1.3 Patents, Trademarks and Licenses ............................................................................ 155

9.1.4 Research and Development ...................................................................................... 156

9.1.5 Products and Markets ............................................................................................... 156

9.1.6 Production ................................................................................................................. 157

9.1.7 Sales and production by products ............................................................................. 158

9.1.8 Major Customers ....................................................................................................... 159

9.1.9 Alliance and collaboration ......................................................................................... 159

9.2 Earthrise Nutritionals LLC. ................................................................................................. 161







9.2.5 Production ................................................................................................................. 163



9.3 Martek Profile .................................................................................................................... 164



9.3.3 Patents ....................................................................................................................... 165



9.3.6 Production ................................................................................................................. 168

9.3.7 Sales by products ....................................................................................................... 168

9.3.8 Major Customers ....................................................................................................... 169

9.3.9 Alliance, collaboration and licensing ......................................................................... 169

9.4 Roquette Profile ................................................................................................................ 171






9.4.6 Production ................................................................................................................. 174



9.5 Sapphire Energy Profile ..................................................................................................... 176



9.5.3 Patents ....................................................................................................................... 177


9.5.5 Products and Market ................................................................................................. 178

9.5.6 Production ................................................................................................................. 178




9.6 Seambiotic Ltd. Profile ...................................................................................................... 181






9.6.6 Production ................................................................................................................. 184


9.7 Solazyme Profile ................................................................................................................ 188





9.7.5 Products ..................................................................................................................... 189

9.7.6 Production ................................................................................................................. 191


9.8 Soliance Profile .................................................................................................................. 193






9.8.6 Production ................................................................................................................. 196


9.9 BFS bio fuel systems Profile ............................................................................................... 197





9.9.5 Products ..................................................................................................................... 198

9.9.6 Production ................................................................................................................. 199



9.10 Fuji chemicals .................................................................................................................... 200



9.10.3 Patent, Trademarks and Licenses .............................................................................. 201


9.10.5 Production ................................................................................................................. 203

9.11 EID Parry (India) ................................................................................................................. 204



9.11.3 Research and development ....................................................................................... 205

9.11.4 Patent, Trademarks and Licenses .............................................................................. 205

9.11.5 Products and markets ................................................................................................ 206

9.11.6 Production and Sales ................................................................................................. 206

9.11.7 Alliance and Collaboration ........................................................................................ 207

9.12 Cognis ................................................................................................................................ 208



9.12.3 Products and markets ................................................................................................ 209

9.12.4 Production ................................................................................................................. 210

9.12.5 Prize Awarded............................................................................................................ 210



List of Figures

Figure 1: Microalgae classification ...................................................................................................... 18

Figure 2: Conditions of alga growth .................................................................................................... 20

Figure 3: Annual average sunshine map ............................................................................................. 25

Figure 4: Open ponds raceways .......................................................................................................... 25

Figure 5: Earthrise Farms microalgal production process ................................................................... 26

Figure 6: Different types of open ponds ............................................................................................. 27

Figure 7: Different types of PBRs ......................................................................................................... 31

Figure 8: Different PBR models ........................................................................................................... 32

Figure 9: Cyanotech process for drying microalgae biomass .............................................................. 35

Figure 10: Biomass production by microalgae .................................................................................... 40

Figure 11: Spirulina cells ...................................................................................................................... 41

Figure 12: Evolution of the global production of Spirulina (dry biomass) .......................................... 42

Figure 13: Production of Spirulina by continent ................................................................................. 43

Figure 14: Utilization of Spirulina biomass .......................................................................................... 45

Figure 15: Whole Spirulina biomass production used by application ................................................. 46

Figure 16: Spirulina biomass production for extraction used by application ..................................... 47

Figure 17: Volume of consumed Spirulina by application ................................................................... 47

Figure 18: Percentage of the Spirulina sales by type of biomass uses ................................................ 58

Figure 19: Spirulina turnover by application ....................................................................................... 58

Figure 20: Spirulina key players and market share ............................................................................. 59

Figure 21: Crypthcodinium cells .......................................................................................................... 60

Figure 22: Consumption of Crypthecodinium cohnii biomass by application..................................... 61

Figure 23: Spirulina turnover by application ....................................................................................... 61

Figure 25: Utilization of Chlorella biomass .......................................................................................... 62

Figure 24: Chlorella cells ...................................................................................................................... 62

Figure 26: Chlorella production repartition by countries.................................................................... 63

Figure 27: Chlorella production by application ................................................................................... 64

Figure 28: Chlorella turnover by application ....................................................................................... 68

Figure 29: Chlorella key players .......................................................................................................... 69

Figure 30: Utilization of Dunaliella biomass ........................................................................................ 70

Figure 31: Dunaliella production by country ....................................................................................... 70

Figure 32: Whole Dunaliella biomass by application .......................................................................... 71

Figure 33: Dunaliella biomass for extraction used by application ...................................................... 72

Figure 34: Dunaliella production by application ................................................................................. 72

Figure 35: Dunaliella turnover by types of biomass uses .................................................................... 74

Figure 36: Dunaliella turnover by application ..................................................................................... 75

Figure 37: Dunaliella key players ......................................................................................................... 75

Figure 38: Schematic overview of the fermentation process of Ulkenia DHA oil ............................... 76

Figure 39: Ulkenia biomass production by application ....................................................................... 78



Figure 40: Ulkenia turnover by application ......................................................................................... 78

Figure 41: Culture ponds (500,000 liters) at Cyanotech Corporation (HI, USA) .................................. 79

Figure 42: Utilization of Haematococcus biomass .............................................................................. 80

Figure 43: Haematococcus biomass for extraction used by application ............................................. 81

Figure 44: Haematococcus turnover by application ........................................................................... 82

Figure 45: Haematococcus key players ............................................................................................... 82

Figure 46: Schizochytrium biomass for extraction used by application .............................................. 84

Figure 47: Schizochytrium turnover by application ............................................................................ 84

Figure 48: Aphanizomenon production by application ....................................................................... 86

Figure 49: Aphanizomenon turnover by application ........................................................................... 87

Figure 50: Utilization of Euglena biomass ........................................................................................... 88

Figure 51: Whole Euglena biomass by application .............................................................................. 89

Figure 52: Euglena biomass for extraction by application .................................................................. 89

Figure 53: Euglena production by application ..................................................................................... 90

Figure 54: Percentage of Euglena sales by type of biomass uses ....................................................... 92

Figure 55: Euglena turnover by application ........................................................................................ 92

Figure 56: Odontella production by application ................................................................................. 93

Figure 57: Odontella turnover by application ..................................................................................... 94

Figure 58: Microalgae sales by type of microalgae (2009) .................................................................. 96

Figure 59: Percentage of the total microalgae production dedicated to extraction and biomass

productions (2009) .............................................................................................................................. 97

Figure 60: Percentage of the microalgae biomass sales by market application (2009) ...................... 98

Figure 61: Percentage of microalgae extracts sales by market application (2009) ............................ 99

Figure 62: Flow chart of production and utilization of Dunaliella ..................................................... 100

Figure 63: Typical process flowsheet for the commercial production of natural astaxanthin by

Haematococcus ................................................................................................................................. 101

Figure 64: Docosahexaenoic acid C22:6(n-3) formula ...................................................................... 105

Figure 65: DHA production by microalgae ........................................................................................ 106

Figure 66: DHA turnover by application ............................................................................................ 107

Figure 67: Total microalgae production by applications ................................................................... 107

Figure 68: Microalgae producers’ turnover by application ............................................................... 108

Figure 69: Biomass for functional food by microalgae ...................................................................... 111

Figure 70: Turnover for functional food by microalgae .................................................................... 112

Figure 71: Biomass for dietary supplements by microalgae ............................................................. 113

Figure 72: Turnover for dietary supplements by microalgae ............................................................ 114

Figure 73: Biomass for feed by microalgae ....................................................................................... 115

Figure 74: Turnover for feed by microalgae ...................................................................................... 115

Figure 75: Biomass for cosmetic by microalgae ................................................................................ 120

Figure 76: Turnover for cosmetic by microalgae ............................................................................... 120

Figure 77: World transport biofuel production between 1975 and 2015......................................... 126

Figure 78: Nationality of companies which work on the production of microalgae biofuel ............ 126

Figure 79: Date of creation of algal biofuel companies .................................................................... 127

Figure 80: Companies classified by technologies .............................................................................. 128



Figure 81: Three generations of bioethanol development ............................................................... 130

Figure 82: Trans-esterification of oil to biodiesel .............................................................................. 131

Figure 83: Expected trends of new car sales between 2000 and 2030 ............................................. 135

Figure 84: Annual investment in algal biofuel ................................................................................... 135

Figure 85: Number of scientific articles on microalgae since 1925 ................................................... 140

Figure 86: Evolution of articles about chlorella, spirulina, dunaliella and heamatococcus since 1925

........................................................................................................................................................... 141

Figure 87: Number of patents for Spirulina and chlorella since 1979............................................... 142

Figure 88: Global distribution of different organizations .................................................................. 145

Figure 89: Worldwide repartition of companies ............................................................................... 145

Figure 90: Worldwide repartition of research laboratories .............................................................. 146



List of Tables

Table 1: Advantages and disadvantages of various algal culture techniques ..................................... 24

Table 2: Description of the different types of PBR .............................................................................. 33

Table 3: Comparison of the 2 main production systems (adapted from: Pulz 2001) ......................... 35

Table 4: Photosynthetic efficiency and productivity of open ponds................................................... 36

Table 5: Photosynthetic efficiency and productivity of Photobioreactor ........................................... 37

Table 6: Production costs of algal biomass in raceway ponds ............................................................ 38

Table 7: Production costs of algal biomass in photobioreactors ........................................................ 39

Table 8: Production of main species of microalgae ............................................................................ 40

Table 9: Spirulina production by countries ......................................................................................... 43

Table 10: Top 5 Spirulina producers .................................................................................................... 44

Table 11: Marketed products with or from Spirulina .......................................................................... 45

Table 12: Nutritional content in Spirulina ........................................................................................... 48

Table 13: Spirulina in food segmentation ........................................................................................... 48

Table 14: Spirulina in dietary supplement segmentation ................................................................... 54

Table 15: Segmentation of cosmetics market ..................................................................................... 55

Table 16: Marketed products with or from Crypthecodinium cohnii ................................................. 60

Table 17: Top 5 Chlorella producers.................................................................................................... 63

Table 18: Marketed products with or from Chlorella ......................................................................... 64

Table 19: Chlorella in food segmentation ........................................................................................... 65

Table 20: Chlorella in cosmetic segmentation .................................................................................... 67

Table 21: Marketed products with or from Dunaliella ........................................................................ 71

Table 22: Dunaliella in dietary supplement segmentation ................................................................. 73

Table 23: Marketed products with or from Ulkenia sp. ...................................................................... 77

Table 24: Marketed products with or from Haematococcus .............................................................. 80

Table 25: Marketed products with or from Schizochytrium ............................................................... 83

Table 26: Marketed products with or from Aphanizomenon flos-aquae ........................................... 85

Table 27: Marketed products with or from Euglena ........................................................................... 88

Table 28: Euglena in food segmentation ............................................................................................. 91

Table 29: Marketed products with or from Odontella ........................................................................ 93

Table 30: Microalgae market sales by microalgae (2009) ................................................................... 95

Table 31: Microalgae value chain and market size by level from producer to retailers (2009).......... 96

Table 32: Microalgae used as a whole (2009) ..................................................................................... 98

Table 33: Microalgae used for extract production (2009) .................................................................. 99

Table 34: Producers of astaxanthin with Haematococcus pluvialis .................................................. 102

Table 35: Microalgal PUFA ................................................................................................................ 105

Table 36: DHA turnover by producers ............................................................................................... 106

Table 37: GRAS submittal of microalgae products ............................................................................ 109

Table 38: Segmentation of conventional food market ..................................................................... 110

Table 39: Top 3 microalgae most used for functional food application ........................................... 112



Table 40: Top 3 most used microalgae for dietary supplements application ................................... 113

Table 41: Upper and lower estimates of microalgae dry weight biomass production required by the

post-larvae of world aquaculture. Adapted from FAO ...................................................................... 118

Table 42: Microalgae commonly used in aquaculture, either as individual diets or components of

mixed diets. (++ denotes more popular than +) ................................................................................ 118

Table 43: Examples of cosmetic ingredients from microalgae.......................................................... 121

Table 44: Main microalgae cosmetic ingredients producers ............................................................ 123

Table 45: Comparison between the different ways of crude oil production .................................... 128

Table 46: Oil contents in selected microalgae species ...................................................................... 132

Table 47: Main partnership of algal fuel companies ......................................................................... 136

Table 48: Algal Fuel Players ............................................................................................................... 144

Table 49: Spirulina Players ................................................................................................................ 146

Table 50: Chlorella Players ................................................................................................................ 149

Table 51: Dunaliella Players .............................................................................................................. 150

Table 52: Haematococcus Players ..................................................................................................... 151

Table 53: New Development Key Players (companies) ..................................................................... 152
