New Zealand Startup Discovers High-Protein Microalgae Strains Suitable for Asia Pacific Nutritional Needs

A ground-breaking research initiative has identified a suite of New Zealand microalgae strains with naturally high protein content—offering significant potential for the future of high-value, sustainable nutrition and exports across Asia Pacific.

The research, co-funded by startup Nutrition from Water (NXW), has been carried out by Nelson’s Cawthron Institute who over the past two years have led strain sourcing and screening, and characterising over 90 native algal strains that has culminated in the selection of 14 standout candidates with naturally occurring protein levels over 40%. One of the target species is Galdieria sulphuraria, now a lead contender for commercialisation, that is also being explored in Europe for similar nutrition commercialisation purposes. 

Galdieria sulphuraria is an extremophilic red microalga that’s typically found in hot springs and geothermal environments. “Galdieria sulphuraria is particularly exciting—not just for its high protein content, but for its ability to thrive in challenging conditions and grow at scale,” said Dr Johan Svenson, Manager – Science Impact at Cawthron Institute. “This project showcases the depth of biodiversity in New Zealand’s microalgae and the strong foundation we’ve laid for a future algae-based nutrition sector.”

Engineering partner Kernohan has developed and built a mobile fermentation unit, now installed in Nelson, to support large-scale biomass production of microalgae strains. The unit is currently being commissioned with Galdieria and is designed for future deployment across New Zealand to unlock local supply opportunities. “We are excited to have a New Zealand-made prototype ready for mass scale production to unlock New Zealand’s biomanufacturing production capacity,” said Paul Miller, CEO of Kernohan Engineering.

To position this leading nutrition internationally, nutrition biotechnology startup Nutrition from Water (NXW) has created a range of affordable nutrition prototypes using the newly identified strains. These include ready-to-mix protein powders, fortified beverages, and wellness products aimed at everyday, advanced and sports nutrition categories. The formulations will be marketed under NXW’s Marine Whey™ ingredient solutions series—a new category platform focused on high-performance nutrition from microscopic, non-GMO algae.

“Microalgae lets us rethink how and where we produce affordable, natural nutrition,” says Dr Payam Mehrshahi, Chief Technology Officer at NXW. With the ability to grow in bioreactors instead of fresh waters or arable land, this technology offers a radically more efficient, lower-emission scale solution to conventional protein production. “Thanks to our financial supporters, we’ve been able to translate laboratory science into real product formats that deliver both nutritional benefit and commercial viability under our Marine Whey™ ingredient series. Most importantly, with the cross-functional team at Cawthron and Kernohan, we’ve delivered on time as we planned, meaning we can get on with the commercialisation phase of our research.”

The project delivered all milestones, from early bioprospecting and screening to the development of flexible fermentation infrastructure and finished food prototypes. With scale-up work already underway, the collective team is now focused on optimising production conditions and engaging with global partners for the next phase of commercial development, as well as furthering other unique micro algae strains found within New Zealand’s water and marine economic zone.

The project was co-funded by Nutrition from Water (NXW), Kernohan Engineering and New Zealand’s Ministry for Primary Industries’ Sustainable Food and Fibre Futures (SFF Futures) fund.

Notes to Editors:

• The “New Zealand microalgae as a future food” project ran from 2022–2025.
• Cawthron Institute led the scientific screening and selection of strains, with engineering by Kernohan and product development by NXW. NXW, Kernohan and MPI’s Sustainable Food and Fibre Futures fund all co-funded the programme.
• Galdieria sulphuraria is a high-protein red microalgae with the ability to grow heterotrophically using dairy by-products.
• The new fermentation system developed by Kernohan is designed for flexible, scalable, and decentralised algae biomass production.
• NXW’s Marine Whey™ platform targets sustainable performance nutrition through microalgae-based ingredients.
• About Nutrition from Water (NXW): NXW is a nutrition technology company partnering with global food corporations to deliver affordable, complete, future-proof nutrition. They use unicellular organisms from aquatic environments to make affordable, non-GMO and non-extractive protein-forward B2B ingredients.
• About Cawthron Institute: New Zealand’s largest independent science organisation, Cawthron Institute is home to New Zealand’s only Culture Collection of Microalgae (CICCM)—a nationally significant, living library of over 600 marine and freshwater microalgal strains, including many that are unique to New Zealand. The collection underpins critical research in food safety, bioactives, and biotechnology, and is one of the highest-ranked collections in the Asia-Pacific region.
• About Kernohan: Kernohan Engineering is a Nelson-based engineering firm with specialist capabilities in custom fabrication, process design, and manufacturing. For this project, Kernohan designed and built a flexible, mobile fermentation unit tailored for the scalable production of high-value microalgae—a first of its kind in New Zealand.