Circular Economy

From Whisky Waste to Sustainable Omega-3s:
Cheers to Circularity

Scottish biotech startup MiAlgae is upcycling whisky waste into algae-derived Omega-3s — a regenerative, circular solution for distilleries, fisheries and more.

By Scarlett Buckley | Published 2 months ago | About a 9 minute read

Image: Guard Bridge producer Eden Mill is an early MiAlgae partner. | Whisky Magazine

The growing global demand for Omega-3s — essential fatty acids widely used in aquaculture, livestock feed, pet food and human health products — is causing a crisis below the waves.

Omega-3s are predominantly sourced from wild-caught fish, but fish don’t actually produce these fatty acids themselves — they accumulate them by eating microalgae — so when we harvest fish for Omega-3s, we’re really after the algae inside them. And when farmed fish are fed wild-caught forage fish to pass Omega-3s up the chain, it creates an inefficient and extractive system. We’re catching fish to feed fish, all to access a nutrient we could have sourced directly from the algae in the first place.

To meet rising global demand for farmed seafood, millions of tonnes of small forage fish — such as anchovies and sardines — are harvested each year to produce fishmeal and fish oil. In fact, around 17 million tonnes of wild fish are diverted annually into aquaculture feed — with over 70% of global fishmeal and fish oil derived from forage fish.

But forage fish are far more than a feedstock. They play a vital ecological role, forming the base of marine food webs and supporting everything from seabirds and large fish to marine mammals and coastal economies. Their extraction at industrial scale is already causing ripple effects — accelerating species collapse, disrupting trophic systems and placing enormous strain on marine biodiversity. One projection warns that demand for fishmeal and fish oil could outpace the natural supply of forage fish by as early as 2037.

In countries including Mauritania, these effects are no longer theoretical. Sardinella, once a local dietary staple, is now disappearing at alarming rates as these fish are increasingly harvested, processed into fishmeal and oil, and shipped to feed aquaculture systems and pet industries in wealthier nations. What remains are collapsing fisheries, vanishing livelihoods and growing food insecurity in communities most reliant on the sea.

From whisky waste to nutritional wealth

In the whisky-soaked hills of Scotland, a biotech solution is brewing. MiAlgae is turning nutrient-rich by-products from whisky distillation into a sustainable feedstock for microalgae — microscopic, photosynthetic organisms that are naturally rich in Omega-3s. This marine-free, regenerative alternative helps protect biodiversity, relieves pressure on global fisheries; and builds a more equitable, circular food system.

Through its proprietary platform, MiAlgae can produce fish-free Omega-3s and potentially other ocean-derived resources — without touching the sea.

The company was founded in 2016 by Douglas Martin, who now serves as CEO. Alongside Technical Director Shreekanth Ramananthan and Technical Consultant Julian Pietrzyk, Martin co-invented MiAlgae’s patented solution — creating a system that grows algae on waste streams, using renewable energy to power 30,000-liter bioreactors. The result? Tonnes of Omega-3-rich algae that are dried and used to feed farmed fish and pets, no ocean inputs required.

MiAlgae’s production sites are planned close to whisky distilleries, where access to wastewater and energy efficiency are built into the design. It’s a model of hyperlocal circularity that scales without compromise.

In 2024, MiAlgae was named a finalist in The Earthshot Prize’s Revive Our Oceans category. Founded by Prince William, the Earthshot Prize awards the most promising solutions to the planet’s greatest environmental challenges.

“Prince William asked me if I’d come up with the idea over a lovely dram of whisky,” Martin tells Sustainable Brands® (SB). “The real story is more focused. Our early team was searching for [plentiful] waste streams that the Omega-3 algae would eat. This drive toward circularity was aimed at ultimately reducing both the impact on the world and to reduce the manufacturing costs of the algae. The team ran thousands of experiments with dozens of wastes and whisky by-products were the winner.”

Scotland’s whisky industry turned out to be the perfect partner. Whisky production produces vast volumes of nutrient-rich liquid waste, a costly but conventional problem. Distillers including Dewar’s, Glenfiddich and Tullibardine have already seized the circular opportunity to turn their spent grain into clean fuel; but it remains wasted by the majority of the industry. MiAlgae is excited to scale its use as a biological solution.

“For every liter of whisky produced there are approximately 15L of by-products that — lucky for us — are rich in all the lovely nutrients that our algae loves to eat, so it was a bit of a no-brainer,” Martin adds.

A hyperlocal Omega-3 value chain

MiAlgae’s approach stands out in the algae-based Omega-3 market, thanks to its use of waste as a primary input and reduced reliance on virgin resources. MiAlgae’s in-house bioreactor design has also been a key differentiator, allowing the company to keep costs low while boosting output.

“Our in-house bioreactor design further enhances scalability by significantly lowering capital expenditure while maintaining high production output,” he adds. “By prioritizing local production, we also minimize the carbon footprint associated with global transportation.”

MiAlgae’s next chapter is all about scale and impact. After years of perfecting its biotech platform and proving the potential of circular algae production, the company is now on the brink of a major scale-up. MiAlgae has submitted plans for a new production facility which marks a turning point in the company’s evolution from pilot project to global climate-tech player.

Designed to operate near whisky distilleries and powered by renewable energy, the new site will dramatically increase production capacity. Once at full speed, it will allow MiAlgae to grow and harvest enough algae to reach its goal to produce 53,000 tonnes of Omega-3 annually — a quantity that could replace up to 10% of the global demand for fish oil.

To do this, MiAlgae will need to upcycle an estimated 639 million liters of whisky by-products — preventing an equivalent of 2.1 million tonnes of CO₂ emissions and replacing more than 1.6 million tonnes of wild fish currently extracted from the sea for oil production.

“This plant will be the first of many production sites we have in the plan,” Martin says. “Our goal is to end reliance on the oceans; and for us, this is the first big step in that direction. Once our first production site is up and running efficiently, we have a highly ambitious growth plan that we will execute against. The new production site will increase our production by 60x.”

Additionally, this new facility will also help MiAlgae meet the growing appetite for sustainable Omega-3s in sectors that urgently need alternatives — namely, aquaculture and pet food — while opening the door to applications in other high-demand markets.

“We are also exploring new markets including meat alternatives, nutraceuticals and livestock feed — sectors with significant global demand,” Martin adds. “Each of these industries is facing the same challenge: how to grow without extracting more from the planet. Our solution is uniquely positioned to help.”

While performance trials are ongoing, MiAlgae is already confident in the value in its algae-derived Omega-3s. The company is conducting trials to demonstrate the performance benefits of its product but says the sustainability and supply chain advantages are already clear.

“By producing Omega-3s directly from microalgae, using nutrient-rich by-products from the whisky industry, we offer a solution that is significantly more sustainable than many other algae-derived alternatives,” Martin explains. “Our process reduces reliance on wild-caught fish while also delivering a stable, traceable and scalable ingredient supply,” he says. “Unlike traditional sources, our production is not vulnerable to external disruptions like climate events or geopolitical instability — giving customers greater consistency and peace of mind. Our view is that sustainability is and should be the gate keeper for any product development; sustainability and performance must work hand-in-hand.”

Partnerships pave the way

For MiAlgae’s technology, partnerships aren’t just a growth strategy — they’re a structural necessity. Unlocking circular solutions at scale requires deep collaboration across industries — from waste generators to end users, and from regulators to innovators.

In 2024, MiAlgae announced a groundbreaking partnership with Eden Mill, a Scottish distillery committed to sustainability. The collaboration has MiAlgae using effluent wastewater from Eden Mill’s distillation process to grow Omega-3-rich microalgae.

“We are very proud of our ongoing collaboration with MiAlgae, which has seen them regularly collect our effluent wastewater since our distillery became operational in April,” Eden Mill CEO Rennie Donaldson tells SB. “The results of this partnership will have far-reaching benefits, ensuring a reliable source of ethical Omega-3s whilst upcycling by-products to return clean water to the watercourse.”

For MiAlgae, the partnership has also helped validate the platform’s real-world viability and built credibility with larger commercial players.

“Strategic partnerships have been instrumental in bringing our product to market,” Martin says. “We’ve established collaborations with industry leaders in aquaculture and pet food, who are eager for sustainable Omega-3 alternatives. Whilst we can’t disclose specifics at this stage, these partnerships are driving innovation and ensuring a smooth path to commercialization.”

As MiAlgae expands into new geographies, the company is tailoring its model to local feedstocks and waste streams — rather than trying to ship a one-size-fits-all solution across the globe.

“Whisky by-products provide an abundant and reliable resource, with billions of liters available each year — which will allow us to scale significantly within Europe,” Martin explains. “As we expand internationally, we plan to adapt our approach by using locally sourced by-products in each region. This will support a decentralized, local production model — reducing the need for long-distance shipping and making our process even more sustainable.”

Whether it’s a Scottish distillery or an international aquafeed brand, every partnership moves MiAlgae closer to its mission: transforming waste into a reliable, circular resource for the future of food.

A global vision

With demand for sustainable Omega-3s rising across continents and sectors, MiAlgae sees its platform as a catalyst for transforming how we produce food, manage waste and protect marine ecosystems. Performance trials are currently underway, evaluating the full nutritional and functional potential of MiAlgae’s Omega-3 across species.

“Right now, we’re focused on … aquaculture and pet nutrition; but as we look to reduce our reliance on the ocean, we will certainly consider a direct-to-human approach,” Martin says. “That will come with time, regulation and the right partnerships.”

Looking five years ahead, the goal is not just to scale or replace fish oil: It’s to embed a circular logic into food production — one that turns waste into opportunity, that decouples nutrition from extraction, and that gives ocean ecosystems and the communities who depend on them a chance to recover.

“We are committed to using biotechnology to reduce the over-reliance on our oceans. We’re very open to working with innovators and partners in the space and believe we can achieve more together,” Martin asserts. “We hope that this openness to collaborate will allow us to expand our positive impact on the oceans.”