This Startup Just Raised £4.5M to Ditch Fossil Fuels in Cosmetics—Are You Ready for the Shock?

Clean Food Group (CFG) has secured £4.5 million in funding to bolster its innovative approach to sustainable food production. The investment round was led by Clean Growth Fund and the new investor New Agrarian, with participation from existing backers including SEED Innovations and Döhler Group. Additionally, CFG was awarded a £700,000 non-dilutive grant from Innovate UK, which will further support its expansion efforts.

This funding is structured as a convertible loan note, confirmed in a stock exchange filing by SEED Innovations. The note features a 12% annual coupon, matures in August 2027, and is set to convert at a 20% discount to the price of a future equity raise.

The financial backing will facilitate the expansion of CFG's fermentation facility located in Knowsley, Liverpool. This one-million-litre site was acquired in September 2025 from Algal Omega 3 Ltd after the company went into administration, marking a strategic move for CFG to enhance its production capabilities.

The Founders and Their Technology

Founded in early 2022 by Alex Neves, Tom Ellen, and Ed McDermott (Co-Chairman), CFG emerged from the expertise of its founders, who previously held executive positions at EMMAC Life Sciences. This company was sold to Curaleaf for approximately $400 million in 2021. Joining them as a technical co-founder is Professor Chris Chuck, who contributed valuable fermentation technology developed during his tenure at the University of Bath.

CFG's innovative CLEAN OilCell technology employs a non-GMO yeast strain called Metschnikowia pulcherrima, initially discovered on wine grapes. This specialized yeast transforms food waste into valuable oils and fats via fermentation, primarily utilizing bread waste sourced through a collaboration with Roberts Bakery. Remarkably, the yeast cells consist of around 40% oil content, allowing CFG to produce a range of oils and fats, including liquids, semi-solids, and hard fats. This versatility is a key advantage over competitors who rely on less robust or genetically modified yeast strains.

The company's inaugural commercial product, CLEAN Oil 25, received regulatory approval for use in cosmetics across the UK, EU, and US in 2025. Applications for food and pet nutrition are still pending review by regulatory authorities. CFG is actively collaborating with partners such as THG Labs, Croda, and Döhler Group for commercial development and has established a demand pipeline that includes a range of fast-moving consumer goods (FMCG) and ingredient manufacturers.

CFG faces competition from firms like NoPalm Ingredients, Äio, and C16 Biosciences. As the market for sustainable food production solutions grows, CFG’s advancements in fermentation technology position it as a formidable player in the sector, reflecting a broader trend toward innovative approaches to food waste and sustainability.