Algae-protein maker teams with Azores dairy supplier on hybrid blends

NXW and Prolacto will co-develop dairy blends using fermented microalgae protein and fibre, aiming at cheaper protein as whey prices climb.

Nutrition From Water (NXW), a New Zealand-Portuguese microalgae company founded in 2020, has agreed with Prolacto to co-develop and commercialise hybrid dairy blends. The blends combine microalgae-derived proteins and fibres with dairy. The targets are food and nutrition companies across the Iberian Peninsula, plus joint international customers. The deal is at the co-development stage. No launch date, volumes or financial terms have been given.

NXW makes its Marine Whey range by heterotrophic fermentation of several microalgae strains, followed by downstream processing. MW50 is a flavour-neutral sodium caseinate replacement with 50% protein. MW70 Plus has 70% protein. MWG is golden and fibre-rich with 35% protein, aimed at baking. Prolacto, founded in 1968 and based in the Azores, supplies dairy and non-dairy ingredients for infant nutrition, chocolate, bakery, ice cream and beverage mixes. The Azores produce about 30% of Portugal's milk.

The timing matters for protein costs. Over the last two years whey protein concentrate rose 108% in price and whey protein isolate nearly doubled. Whey prices set records in 2025 and kept rising. Fermentation-made protein does not depend on cattle or farmland. If it scales, it could give manufacturers a cheaper, steadier protein input. A blend that cuts the dairy share per product is a practical first step. A cited survey also found interest in blended protein formats among 75% of millennials, 72% of Gen Z and 66% of Gen X.

The caveats are real. NXW says Marine Whey costs about one third of conventional whey and works better than caseinate. Those are company claims. Two earlier NXW products, Marine Fiber 95 and MWB, no longer appear on its website. Watch for a first commercial blend, named customers, and real pricing at scale.

Source: Green Queen