|
 Frutarom Industries said on Monday it bought half of a biotech
startup called Algalo, which is based on a kibbutz, or communal
farm, in northern Israel, that developed a way to efficiently
cultivate, harvest and process a variety of algae.
The algae yield strong antioxidants, lipids and proteins that can
help cardiovascular and immune systems, as well as bone structure,
Israel-based Frutarom said.
Algalo says its low-cost photobioreactor, which uses light to
cultivate algae, can grow almost all species of microalgae in high
productivity.
Frutarom will invest 10 million shekels ($2.56 million) for 50
percent of Algalo shares and to build a modern biotechnology
facility for algae harvesting.
The size of the algae-based ingredient market is estimated to be
hundreds of millions of dollars and has grown at double-digit rates
in recent years, Frutarom Chief Executive Ori Yehudai said.
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"We foresee the rapid growth in this market continuing in coming
years in light of consumer trends towards healthier and more natural
products," he said.
(Reporting by Ari Rabinovitch; Editing by Tova Cohen)
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