The Age reports:
“Algae.Tec, a Perth-based producer of algal oils used in clean fuel, plans to sell $US200 million ($190 million) of bonds in Europe to fund expansion in the Americas.
The company intends to start the offering within the next month and complete it by mid-year, Chairman Roger Stroud said. The proceeds will finance new factories in Texas and Brazil that will produce algae for biofuels, he said.
Algae.Tec is expanding after the U.S. approved a $US1.01-a- gallon tax credit for producers of algal fuels. That followed a decision by the Environmental Protection Agency in September to raise the requirement for biodiesel in refined products. A year earlier, U.S. regulators allowed airlines to fly passenger jets using a biofuel blend.
Algae.Tec plans to retain a stake of more than 90 per cent in the new factories, where feasibility studies will be completed this month, according to Stroud. The bond sale is “the most appropriate mechanism for this type of project providing a substantial leverage on equity,” he said.”
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