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EU Blue Economy Observatory

Blue Biotechnology

However, biotechnology – not only blue – is not just a sector, but rather a “critical technology” for EU Strategic Autonomy. The Strategic Technologies for Europe Platform (STEP) identifies it as one of the four essential pillars for Europe’s future competitiveness alongside digital and clean technology, as well as defence technology. In the EU vision for biotechnology in 2040, a shift is anticipated, whereby bio-based solutions become the default for EU industry, moving from laboratory-scale innovation to full-scale biomanufacturing.

Proposed towards the end of 2025, the EU Biotech Act aims to streamline regulatory pathways for the entire biotechnology sector and introduces the concept of “strategic biotech projects”. These projects will benefit from fast-tracked permitting (reducing timelines from 106 days to 75 days for certain trials) and priority access to EU funding. 

Size of the EU Blue biotechnology sector, 2009-2023. Turnover, GVA ad gross operating surplus in EUR billion, persons employed (thousand), and average wage (EUR thousand)
Figure 1. Size of the EU Blue biotechnology sector, 2009-2023. Turnover, GVA ad gross operating surplus in EUR billion, persons employed (thousand), and average wage (EUR thousand)
Socio-economic trends by MS of EU blue biotechnology industry
Figure 2: Socio-economic trends by MS of EU blue biotechnology industry in 2023

 

Trends and drivers 

According to BlueInvest, from 2000 to 2023, the European blue biotechnology industry has attracted an increasing number of investments. Indeed, whilst between 2000 and 2018 the number of deals (i.e. investment agreements) closed was 90, from 2018 to 2023 the quantity increased to 114, with an average of 19 deals per year. From 2023 to 2024, however the number of deals concluded jumped to 55. Overall, these deals totaled more than EUR 450 million. Despite the notable increase, the invested volume remains relatively modest, compared to other blue economy sectors. This is largely due to the fact that 67% of the deals are still at the early stage, while only 2% have reached the growth stage. In terms of deal size, the average for the 2018-2024 period was EUR 2M, with a median of EUR 0.9M.

Comparable – albeit slightly different – numbers are available from Hub Azul, which reports 187 funding rounds for blue biotechnology start-ups in the EU in the period 2018-2024, reaching a total value of more than EUR 775 million. Aside from the fact that both BlueInvest and Hub Azul cannot possibly be aware of all investments in EU blue biotechnology companies – not all investments are disclosed publicly, the difference is probably due to BlueInvest providing a broad public-deal view of the sector, and Hub Azul providing a startup/private-funding-round view. Because the two sources differ in transaction definition, disclosure coverage, and company selection, their figures should be treated as directional rather than directly comparable. Taken together, they suggest that EU blue biotechnology attracted on the order of roughly 170–190 publicly identifiable financing events in 2018–2024, with disclosed investment plausibly in the several-hundred-million-euro range, but the true amount is higher and cannot be inferred precisely from either source alone. 

Further, according to Hub Azul, as of April 2026, there are at least 203 blue biotechnology companies in the EU, whose economic valuation overall totals EUR 3.2 billion (+421% from 2018).

Policy driven scale-up of algae and blue bioeconomy value chains

The most direct EU-level driver since 2020 is the policy progression from the sustainable blue economy framework[1] (2021) to a dedicated algae-sector initiative[2] (2022) and, more recently, the Ocean Pact[3] (2025). Together, these policies strengthen the mandate for sustainable algae production, aquatic biomass valorisation, and blue bioeconomy competitiveness, creating clearer targets for R&I and implementation funding.

While there is no act specifically supporting blue biotechnology as such in the EU, a number of initiatives are designed to strengthen the broader biotechnology sector as a whole. The 2024 EU communication on boosting biotechnology and biomanufacturing[4] explicitly addresses enabling conditions (i.e. finance, regulation, awareness) for EU biotech competitiveness. Its measures include streamlining regulations and establishing a “Biotech Hub” to guide companies, and are explicitly intended to lead to an EU Biotech Act[5]. For blue biotechnology, this is a cross-sector enabler: it supports scale-up logic for marine-derived compounds, algae-derived ingredients, and bioprocessing platforms that otherwise might face high CAPEX, long validation cycles, and complex regulatory pathways. The proposed Biotech Act is designed to reposition the EU as a biotechnology leader. It includes fast-track approval for strategic biotech projects, new finance instruments (via EIB), and a network of support hubs.

The revised EU Bioeconomy Strategy[6] emphasises scaling up bio-based industries. Among other things, the Strategy aims to ensure the long-term competitiveness of the EU bioeconomy and investment security, by identifying measures to scale up and commercialise existing and emerging biotech solutions and bio-based products.

Other legal instruments also have an impact on blue biotechnology, albeit indirectly. The Marine Strategy Framework Directive (2008/56/EC)[7] requires Member States to achieve Good Environmental Status of their marine waters, ensuring sustainable use of marine ecosystems. The EU’s Biodiversity Strategy for 2030[8] sets targets (e.g. protecting 30% of EU seas) that frame marine R&D priorities. 

The exploitation of marine genetic resources is governed by the Nagoya Protocol9. The EU Access and Benefit‑Sharing (ABS) Regulation aligns EU legislation with the relevant international obligations and entered into force in 2014. It applies whenever genetic resources—and the associated traditional knowledge—are employed in research and development for their genetic characteristics and/or biochemical composition, including the use of biotechnology. Likewise, marine organisms intended for food or feed must comply with EU Novel Foods Regulation, though the Commission has updated the Novel Food catalogue to list many traditional algae as non-novel. 

Further, blue biotechnology is actively supported through coordinated policies and funding instruments. For example, Horizon Europe includes dedicated Cluster 1 calls including topics relevant to biotechnology and biomanufacturing – such as vaccine production, personalised medicine, bio-manufacturing of medical products – as well as Cluster 6 calls for marine biotechnology research. The European Maritime, Fisheries and Aquaculture Fund (EMFAF) has provided grants for sustainable aquaculture and bio-based innovation (including skill-development Blue Careers projects, such as the Blue Biotechnology Master for a Blue Career. The Sustainable Blue Economy Partnership (a Horizon Europe public–private partnership) aligns these R&I efforts with European Green Deal objectives, explicitly contributing to the Biodiversity Strategy for 2030 and other policy goals.
 

[1] A new approach for a sustainable blue economy in the EU Transforming the EU's Blue Economy for a Sustainable Future – 2021. European Commission 

[2] Towards a Strong and Sustainable EU Algae Sector – 2022. European Commission 

[3] The European Ocean Pact – 2025. European Commission 

[4] Building the future with nature: Boosting Biotechnology and Biomanufacturing in the EU – 2024. European Commission 

[5] European Biotech Act – 2025. European Commission 

[6] New EU Bioeconomy Strategy – 2025. European Commission 

[7] EU Marine Strategy Framework Directive – 2008. The European Parliament and the Council of the European Union

[8] EU Biodiversity Strategy for 2030 – 2020. European Commission 

 

 

 

 

 

 

 

Protein transition and functional ingredient demand

A sustained market pull is coming from demand for new, nutritious and sustainable food/feed inputs (including microalgae and seaweed ingredients) and “functional” bioactives. EU-funded value-chain projects increasingly target food/feed and consumer readiness alongside production scale-up, reflecting that market formation (e.g. taste, price, safety, trust) is as important as biology and engineering.

Marine-derived ingredients can be incorporated into functional foods and nutraceuticals, offering health benefits such as omega-3 fatty acids, antioxidants, and vitamins. The growing demand for natural and functional ingredients presents opportunities for the development of marine-based food and dietary supplements. For example:

  • Omega-3 fatty acids and essential nutrients: marine organisms such as fish, algae, and seaweeds are rich sources of omega-3 fatty acids, vitamins, minerals, and other essential nutrients beneficial for human health1.These ingredients can be incorporated into functional foods, dietary supplements, and nutraceuticals targeting specific health conditions, such as cardiovascular disease, cognitive function, and immune support.
  • Anti-oxidants and bioactive compounds: marine-derived antioxidants and bioactive compounds exhibit potential health benefits, including antioxidant, anti-inflammatory, and anti-aging properties. Incorporating these ingredients into food and beverage products can enhance their nutritional value and appeal to health-conscious consumers seeking natural and functional ingredients. Carotenoid pigments from brown algae carry out antioxidant activity and provide positive health effects to treat obesity and type-2 diabetes2.

[1] Calder, P.C. - 2015. Marine omega-3 fatty acids and inflammatory processes: Effects, mechanisms and clinical relevance. Biochimica et Biophysica Acta (BBA)-Molecular and Cell Biology of Lipids, 1851(4), pp.469-484.

[2] Kurniawan, R. et al. - 2023. Carotenoids composition of green algae Caulerpa racemosa and their antidiabetic, anti-obesity, antioxidant, and anti-inflammatory properties. Molecules, 28(7), p.3267.

Cell-based (sea)food industry

The cell-based food industry aims to complement the conventional food sector in meeting the growing demand for proteins worldwide[1]. In particular, cell‑based seafood represents an innovative bio‑resource that uses advanced biotechnological processes to convert cultured marine cells into edible products that are nutritionally and organoleptically comparable to traditional fish and shellfish. At present, there are 12 companies specialised on cell-based seafood manufacture – including crab, shrimp, tuna, salmon - that operate in Europe, nine of which have headquarters in the continent. As with all novel foods, the European Food Safety Authority (EFSA) is responsible for the scientific risk assessment within the EU framework. To date, however, no cell‑based animal‑origin product has received market authorisation from the European Commission or from the competent authorities of the Member States. Investments in the sector occur at both national level (e.g. Cellulaire Agricultuur Nederland and EU level (e.g. Seanergies.

 


[1] Borriello, A. and Pierucci, A., 2025. A global comprehensive review on cultured seafood. npj Science of Food9(1), p.142.

Circular biorefineries and side-stream valorisation become the default model

Across recent EU portfolios, algae and aquatic biomass are increasingly treated through “cascading biorefinery” approaches: extracting multiple product fractions (e.g., lipids + proteins + polysaccharides) and valorising residual streams to improve unit economics and sustainability. This is explicit in projects targeting full biomass use at scale (e.g., kelp valorisation in PROTEUS[1]) and microalgae-to-fuels systems that also generate feed coproducts. 


[1] kelP side stReam valOrisaTion to dEvelop new biobased valUe chainS. PROTEUS

Environmental services: bioremediation, nutrient capture, and regenerative ocean farming

A second major demand-side driver is the use of algae/microbial systems for environmental management: nutrient capture, water polishing, and ecosystem services linked to circular water and zero-pollution goals. Marine microorganisms possess unique metabolic capabilities for degrading organic pollutants, such as hydrocarbons, heavy metals, and wastewater contaminants. Bioremediation technologies based on marine biotechnology can be applied to clean up oil spills, industrial wastewater, and marine debris, mitigating environmental pollution and restoring ecosystem health1. A LIFE-funded project demonstrates nature-based wastewater tertiary treatment approaches incorporating microalgae, while EU4Algae-linked work explicitly discusses regenerative ocean farming and bioremediation potential.

 


[1] Aliko, V. et al. - 2022. Get rid of marine pollution: bioremediation an innovative, attractive, and successful cleaning strategy. Sustainability, 14(18), p.11784.

 

 

Omics, bioinformatics, and synthetic biology accelerate marine biodiscovery

Exploring marine biodiversity for biotechnological purposes can lead to the discovery of new species and genetic resources with potential commercial value. By promoting biodiversity conservation and sustainable use of marine resources, blue biotechnology contributes to the preservation of marine ecosystems.

Technology advancements – especially in bioinformatics, culturomics/high‑throughput screening, and synthetic biology – are reshaping what is technically and ethically feasible in marine biodiscovery. Some EU-funded projects (e.g. GENIALG, BlueRemediomics, COMBO, LOCALITY explicitly target integrated data platforms and responsible access/benefit-sharing approaches, signalling institutional recognition that “digital + biotech” is central to the next phase of marine-derived innovation.

It is worth noting that marine organisms produce a wide range of bioactive compounds with potential pharmaceutical applications, including antimicrobial agents, anticancer drugs, and anti-inflammatory compounds. For example, seaweeds contain a large variety of phytochemical constituents that can be used in the prevention and treatment of health diseases. Exploiting these natural resources can lead to the discovery of new drugs and therapies. 

Microalgae and climate/energy linkages

EU climate policy (and downstream sectoral demand for low-carbon energy carriers) is driving microalgae R&I for advanced fuels and carbon capture/use (CCU) integration. Microalgae offer a promising source of biomass for biofuel production, including biodiesel, bioethanol, and biohydrogen. Algae cultivation can be conducted in various marine environments, including open ponds, photobioreactors, and offshore facilities, utilising sunlight and seawater to produce renewable energy resources. A recent Horizon Europe project, SusAlgaeFuel[1], focuses on producing aviation/shipping fuels from microalgae with CO₂ utilisation, process optimisation, and techno-economic and life-cycle assessments to reach relevant TRLs.


 


[1] Exploring the synergies between direct carbon-capture, nutrient recovery and next-generation purification technologies for cost-competitive and sustainable microalgal aviation fuel. Horizon Europe

Bioenergy and bioremediation

Marine microorganisms and algae can be used for the production of biofuels, such as biodiesel and bioethanol, as well as for bioremediation purposes to clean up marine pollution. These applications contribute to the development of sustainable energy sources and environmental conservation efforts.

  • Biofuel production: Marine microorganisms, particularly algae, offer a promising source of biomass for biofuel production, including biodiesel, bioethanol, and biohydrogen. Algae cultivation can be conducted in various marine environments, including open ponds, photobioreactors, and offshore facilities, utilising sunlight and seawater to produce renewable energy resources.
  • Bioremediation of marine pollution: marine microorganisms possess unique metabolic capabilities for degrading organic pollutants, such as hydrocarbons, heavy metals, and wastewater contaminants. Bioremediation technologies based on marine biotechnology can be applied to clean up oil spills, industrial wastewater, and marine debris, mitigating environmental pollution and restoring ecosystem health.

To find out more about what the Commission is doing to support the EU Algae sector, as well as to discover other infographics, please visit the AAM website.

 

Update: 21.05.2026