When biotechnology company Algalíf established its operations at Ásbrú in K64 Icelands Airport Region in 2014, several locations were under consideration, including sites in Norway. According to CEO Kári Guðmundsson, the unique strengths of the Suðurnes region ultimately proved decisive.
“Reliable access to clean energy, cost-effective facilities, strong support for innovation and excellent opportunities for future expansion were among the factors that carried significant weight in our decision,” says Kári.
Specialised Production Technology Creates a Competitive Advantage
Today, Algalíf is a leading producer of microalgae cultivated to produce astaxanthin, a powerful antioxidant used in health and wellness products worldwide.
The company employs a highly specialised cultivation process in which microalgae are grown in glass photobioreactors under thousands of LED lights within a carefully controlled indoor environment. This fully enclosed production system ensures consistently high quality and enables precise control throughout the cultivation process. The company’s unique production technology and expertise provide a significant competitive advantage in international markets.
Algalíf currently employs around 70 people representing 17 nationalities. A large proportion of the workforce consists of scientists, researchers and other highly specialised professionals. The company’s facilities now cover approximately 14,000 square metres, with plans for further expansion in the coming years.
Market Access and Trust Matter
Kári highlights several advantages of operating in Icelands Airport Region. The region’s naturally cool climate, reliable energy supply and proximity to Keflavík International Airport are all important factors.
All of Algalíf’s products are exported by air freight, making access to international transportation networks essential for efficient distribution, as well as for attracting and supporting the international specialists who work for the company.
Demand for Algalíf’s products has grown steadily over time. While the United States has traditionally been the company’s primary market, demand across Europe and Asia continues to increase.
“In our industry, quality and trust are often more important than achieving the lowest price,” says Kári Guðmundsson. “This is a product intended for human consumption, and customers want the highest quality available. That is why our brand and the trust we build with customers are so important.”
A Strong Long-Term Vision and a Dynamic Business Environment
Asked about the K64 Development Plan, Kári emphasises the importance of planning, predictability and a long-term vision for companies operating in the region.
By developing a strong business ecosystem where companies can share infrastructure, services and specialised expertise, significant synergies can be created that benefit all stakeholders and strengthen the region as a whole.
Algalíf’s vision for the future is ambitious. Kári sees substantial opportunities for growth, including increasing production capacity by approximately 50% within the next few years and potentially doubling the company’s overall scale within the next decade.
At the same time, Algalíf is exploring new opportunities in algae cultivation and biotechnology, including applications within healthcare and life sciences, as well as the use of algae in areas such as animal nutrition and feed production.
“The knowledge and expertise that have been built here over recent years are invaluable,” says Kári. “They represent our greatest strength and the foundation for continued growth.”
Creating Value Through Innovation and Highly Specialised Jobs
Algalíf demonstrates how an international high-tech company can leverage the strengths of the region to create economic value, highly specialised employment opportunities and long-term growth.
Kári also stresses that Algalíf is not only a world-class manufacturing company, but also an exciting workplace within an industry that offers tremendous growth potential.
As advances in microalgae cultivation, biotechnology and automation continue, a wide range of new scientific, technical and engineering positions could emerge in Iceland’s Airport Region in the years ahead.
“We have built a truly unique company here in the region, and the opportunities for the future are extensive.”
