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DSM and Evonik establish joint venture for omega-3 fatty acids from natural marine algae

Royal DSM and Evonik recently announced their intention to establish a joint venture for omega-3 fatty acid products from natural marine algae for animal nutrition. Evonik and DSM’s alternative omega-3 source is the first to offer both EPA and DHA and will be aimed at initial applications in salmon aquaculture and pet food. The companies will together build a commercial-scale production facility in the United States. The joint venture plans to invest around US$ 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.

March 9, 2017

Royal DSM and Evonik recently announced their intention to establish a joint venture for omega-3 fatty acid products from natural marine algae for animal nutrition. This breakthrough innovation will enable the production of omega-3 fatty acids for animal nutrition without using fish oil from wild caught fish, a finite resource.

Evonik and DSM’s alternative omega-3 source is the first to offer both EPA and DHA and will be aimed at initial applications in salmon aquaculture and pet food. The companies will together build a commercial-scale production facility in the United States.

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 US$ 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. The set-up of the joint venture, to be named Veramaris and headquartered in The Netherlands, will be finalized subject to regulatory approvals and other customary closing conditions.

 

The joint venture follows the joint development agreement, signed in July 2015. Under this agreement, Evonik and DSM 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.

Under the joint development agreement, DSM and Evonik have successfully produced pilot-scale quantities of the algal oil at DSM’s production facility in Kingstree, South Carolina (United States). Customers will be able to receive sizeable quantities of the product for market development while the construction of the new manufacturing plant is underway.

The successful product and process development was only possible thanks to the complementary competencies that Evonik and DSM bring to the collaboration: DSM has expertise in the cultivation of marine organisms including algae and long-established biotechnology capabilities in development and operations, whilst Evonik’s focus has been on developing industrial biotechnology processes and operating competitively large-scale manufacturing sites for fermentative amino acids.

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