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Clean Food Group (CFG), a UK-based biotechnology manufacturer specialising in sustainable oils and fats, has confirmed a £4.5 million investment led by Clean Growth Fund and New Agrarian. The funding is supplemented by a £700,000 non-dilutive grant from Innovate UK. Announced during the company's debut at in-cosmetics Global in Paris, the capital is earmarked for the completion of a major scale-up at the company's Knowsley facility in Liverpool.

The investment follows CFG’s September 2025 acquisition of the 1 million-litre fermentation manufacturing site, a move that established the company as the world’s largest producer of yeast-derived oils and fats.

Scale-Up and Global Market Potential

The primary objective of the new funding is to transition CFG from pilot-scale innovation to full-scale commercial deployment. The Knowsley facility is central to this strategy, providing the infrastructure necessary to meet a projected surge in global demand for sustainable ingredients.

The global sustainable food market, valued at US$315 billion in 2024, is forecast to reach US$524 billion by 2032, representing a CAGR of 6.7%. By leveraging fermentation technology, CFG aims to provide a localised, low-impact alternative to traditional agricultural and tropical oil supply chains, such as palm oil, which are increasingly vulnerable to environmental and regulatory pressures.

Fermentation and Circularity

CFG’s proprietary fermentation platform is engineered to produce high-performance oils and fats using food waste as a feedstock. This circular economy approach offers two primary advantages for B2B partners:

• Functionality: Yeast-derived oils can be tailored to deliver specific performance characteristics for food, cosmetics, and pet nutrition.

• Resilience: Shifting production to localised microbial fermentation reduces reliance on volatile global trade routes and climate-impacted agricultural regions.

The company is supported by industry partner Döhler Group, a global leader in ingredients, which is assisting in the commercial scale-up and market integration of CFG’s products.

Addressing Supply Chain Fragility

A key driver for this investment is the growing concern over supply chain security. Jim Mellon, Chairman and Founder of New Agrarian, noted that war, climate volatility, and trade disputes have compromised the guaranteed availability of traditional ingredients.

Partnership and Shareholder Support

The funding round saw continued participation from existing shareholders, including the institutional investor SEED Innovations and strategic partner Döhler Ventures. This level of sustained support from both financial and industrial backers underscores the commercial viability of CFG's fermentation platform.

Rodrigo Hortega de Velasco of Döhler Ventures stated that the acquisition and subsequent scale-up of the Knowsley facility represent a "significant milestone" in bringing innovative, sustainable fats closer to widespread commercial reality.

Operational Roadmap for 2026-2027

With the new capital secured, CFG will focus on:

• Finalising Equipment Installation: Completing the technical outfitting of the Knowsley site.

• Expanding Capacity: Increasing production volume to meet existing commercial inquiries.

• Commercialisation: Accelerating the entry of high-performance yeast oils into the cosmetics and food sectors.

For the B2B sector, CFG represents a critical shift toward "biomanufacturing" as a solution for both sustainability mandates and raw material security. As the Knowsley facility reaches full capacity, it is expected to serve as a blueprint for localised, high-tech ingredient production globally.