Genosa was one of six out of around 550 companies awarded for its potential by the Andalucian government.
The firm has already gained a grant of €300,000 from the local authorities but says the new award guarantees strong financial support for ongoing projects.
"We will probably need a major capacity expansion in around two to three years," said Genosa president Carlos Pena.
The firm currently markets two patented products: Actiolio Mediterráneo (a functional oil incorporating virgin olive oil, omega-3 fatty acids and other vegetable oils enriched with natural vegetable antioxidants) and Hytolive hydroxytyrosol, a bioactive compound derived from olives.
"This award shows that hydroxytyrosol has an enormous future," added Pena.
Both olive oil and omega-3 fatty acids can be supported by health claims in the US.