16 October, 2013

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Algae.Tec (ASX: AEB, OTCQX: ALGXY) has raised AU$750,000, with an additional $250,000 in 2 months. The consideration for this has been a Platinum Bond to sophisticated investors. The bond has been issued with pre-paid interest of 7.5%. The advisor to this issue is Platinum Road Pty Ltd.

The funds will be utilised to progress key projects and for general working capital including repayment of existing loans.

The bonds are repayable in 12 months or may be converted into shares at a conversion price of $0.22 cents. .

Algae.Tec technology images:  

About Algae.Tec

Algae.Tec Ltd, founded in 2007, is an Australian advanced renewable oil from algae company that has developed a high-yield enclosed algae growth and harvesting system. The Company has offices in Atlanta, Georgia and Perth, Western Australia. The Algae.Tec bioreactor, an enclosed modular engineered technology, is designed to grow non-GMO algae on an industrial scale, and produce algae products including biofuels that replace predominantly imported fossil fuels. The Algae.Tec solution is less than one tenth the land footprint of pond growth options, while its enclosed module system is designed to deliver the highest yield of algae per hectare, and solves the problem of food-producing land being turned over for biofuel production.

PRESS RELEASE: Lux Research ranks Algae.Tec the leader in a review of 29 global algae firms

Algae.Tec (ASX: AEB, OTCQX: ALGXY) is ranked as a “Dominant” business in the new Lux Research Report Leading Alternative Fuel Developers Race to Real Revenue in 2013 announced this week.

The review of 29 algae companies globally, ranks Algae.Tec ahead of its competitors as the only “Dominant” company based on the criteria “Technical Value and Business Execution”.

“Lux Research positioned alternative fuel technology developers on the Lux Innovation Grid based on their Technical Value and Business Execution – companies that are strong on both axes reach the “Dominant” quadrant,” according to Lux Research.

Lux Research said about emerging technologies intelligence report:

“The alternative fuels sector continues to steadily progress, revealing some lucrative home-runs as well as ill-fated disappointments.

Shale gas disrupted the North American energy landscape, and its ripples were felt worldwide.

But with the fuels market on the order of trillions of dollars, opportunities for an array of technological solutions exist.

To best assess the alternative fuels sector, we refined the crowded landscape into eight categories: crop modification, pre-treatment, algae, gasification, bioprocessing, pyrolysis, torrefaction, and catalytic conversion.

We then analysed companies occupying each category using our Lux Innovation Grid methodology, a tool that ranks companies on business execution, technical value, and maturity.

This allows readers to quickly identify potential partnership and investment opportunities that best fits their individual needs.”

“Real revenue is the meme of 2013. With several expensive next-generation plants expected to come online, the outlook is poised to dramatically change for budding fuel developers and major corporations alike,” said Andrew Soare, Lux Research Analyst and the lead author of the report.”

About Lux Research:

Lux Research provides strategic advice and on-going intelligence for emerging technologies. Leaders in business, finance and government rely on Lux Research to help them make informed strategic decisions.

Through their unique research approach focused on primary research and extensive global network, they deliver insight, connections and competitive advantage to their clients.

The full report (subscription required) can be found here.

The Lux Research Press Release can be found here.

Algae wins gold with new USA Government producer credit

Fiscal Cliff Bill Makes Algae Eligible for Biofuel Producer Credit

Tax Parity Puts Algae on Equal Footing With Cellulosic Feedstocks, Encouraging New Sources of Domestic, Renewable Biofuels

The Algae Biomass Organisation today announced that as part of the bi-partisan “Fiscal Cliff” legislation passed by the U.S. House of Representatives and the U.S. Senate on January 1, 2013, algae-derived fuels are, for the first time ever, a “qualified feedstock” under section 40 of the United States Code meaning that producers of algal fuel are eligible for a $1.01 per gallon tax credit.

Read more here.

OriginOil says Australia the perfect venue for Algae Industry: Climate Spectator

A new article on Climate Spectator, ‘You can have your carbon and eat it too’, explores the commercial viability of the emerging algae energy industry.

The author, Giles Parkinson, outlines the potential profitable uses of the technology, including ” jet fuel, biochar, animal feed, fish food, oils, plastics and fertiliser”.

According to Parkinson, “A whole host of competing algae technologies are now entering the pilot and demonstration phase to prove they can effectively capture emissions, provide a stable growing environment to produce the algae, and then use it for the aforementioned bi-products – and do it without going broke.”

The article concludes by looking at Australia’s role in this rapidly expanding industry: “Australia, he [T Riggs Eckelberry, the head of the US firm OriginOil] says, is potentially the perfect venue for such an industry: lots of land, lots of sun, and lots of greenhouse gases – and a government that is “brave enough” to put a price on those emissions. “My thesis is that Australia has an opportunity to develop another huge resource industry”.”

Read the full article on Climate Spectator.

Algae.Tec is an ASX-listed innovative biofuels company: AFR

The Australian Financial review on commercialization of renewable energy technology speaks to industry leaders including Silex System, Dyesol and Algae.tec. “Algae.Tec is an ASX-listed innovative biofuels company that avoids Government schemes because of the excessive bureaucracy and the demand that companies reveal intellectual property to reviewing committees.” See full article

Virgin Airline Group supports algae biofuels: Green Technology World

Green Technology World has released an article featuring Virgin Airline Group who are negotiating agreements to develop and produce aviation biofuels at their Los Angeles, international airport.

Because there is “significant stage-length operations” at the L.A airport, airlines such as V Australia, Virgin America and Virgin Atlantic will be able to maximise bio-derived jet fuel deployment at a single shared location.

Virgin Group Founder Sir Richard Branson, says this progression is a “vital breakthrough” for the entire airline industry. “Its enables those of us who are serious about reducing our carbon emissions to go on developing the fuels of the future,” Branson says.

Branson also explains that fully commercial biofuel flights are likely to employ feedstock such as algae to charter their jets.

Read the full article here:


Biofuels Digest: The latest on Algae.Tec announcements

Biofuels Digest has reported on Algae.Tec, this time focusing on its new Development & Manufacturing Centre in Atlanta, Georgia. The article also mentions that the company “announced it had appointed the Bank of New York Mellon to commence the establishment of a Level 1 American Depository Receipt Program.”

Thomas Saidak’s report concludes by explaining Algae.Tec’s enclosed modular system, which is designed to “capture carbon pollution from power stations and manufacturing facilities to produce biofuels including biodiesel and jet biofuels”.

Read “Algae.Tec opens manufacturing center in Georgia”.

Algae Industry Magazine: Algae.Tec serves Cleantech “international market”

Algae Industry Magazine featured advanced biofuels company Algae.Tec, on their announcement of the opening of the “Algae Development & Manufacturing Centre in Atlanta, Georgia, where their photo-bioreactor algae growth and harvesting system—termed the McConchie-Stroud System”.

The Centre will “serve the international market,” Executive Chairman, Roger Stroud says.

The 18,200 square foot fabrication facility is designed to produce valuable sustainable biofuels, including biodiesel and green jet biofuels. The technology also captures carbon pollution from power stations and manufacturing facilities, which feed into the algae growth system.

Algae.Tec has also recently appointed the Bank of New York Mellon (BNY Mellon) to begin the establishment of a Level 1 American Depositary Receipt (ADR) Program.

“The ADR Program would give USA energy and cleantech investors access to shares in the company, which is in a high growth phase establishing facilities in Australia and Asia,” Stroud says.

Read the full article here:

WeBioEnergy: Alage.Tec above the rest

Algae.Tec “roared right out of stealth mode and into the public markets” as a result of a successful flotation on the ASX and FWB this year, WeBioEnergy reports.

The report includes:
The background to the McConchie-Stroud partnership and how the enclosed photo-bioreactor module concept was developed and how installation works have begun on the modular system, which will be assembled in the US and delivered to the Manildra ethanol plant in Nowra, NSW.

View full article here:

Garnaut Report: Algae.Tec for fossil fuel competition

“Algae can be grown for use as a feedstock to produce biofuel or electricity, providing emissions mitigation through displacing fossil fuels. Large volumes of biomass can be produced from relatively small areas of lake or sea water, including on saline land not suited to agriculture. Augmented carbon dioxide supplies are necessary for high levels of production, and can be obtained from the exhausts of fossil fuel combustion in fossil fuel electricity generation facilities (CSIRO 2009) or the blast furnaces of steel mills. Some life cycle analysis suggests that algal biodiesel could be produced competitively with fossil diesel (Campbell et al. 2009). ….. Research and development activity in this field has increased since the Review, and a number of pilot plants are in development (see for example MBD Energy Ltd 2011; Algae.Tec 2011). Globally, there are prospects for commercialising algal biofuel production on a large scale within around five years (CMT 2011).”
Latest Garnaut Report, “Transforming Rural Land Use.”

Reuters: Biofuels “the only way”

News agency Reuters has published a report stating that biofuels are the winning strategy in worldwide efforts to lower carbon emissions, saying it is “the only way.”

Global oil and fuel company British Petrol has confirmed that “Biofuels represent the only way to significantly reduce carbon emissions in road transport fuel and are likely to account for at least 12 percent of supply by 2030.”

The report predicts a significant rise in demand for fuels in countries such as China and India. and that these countries will most likely generate the strongest demand in growth for road transport fuel over the next 20 years.

Read the full article here,

Biodiesel Magazine: FWB opens doors for Algae.Tec

An article published in Biodiesel Magazine maps the progress of biofuels company Algae.Tec, which has recently been accepted to list on the Frankfurt Stock Exchange [FWB]. Executive Chairman Roger Stroud believes this listing has opened the doors to “the most significant sustainable energy market in the world.” Stroud is confident that the European market “will allow a larger pool of cleantech-oriented investors to invest in Algae.Tec and its projects.”

Algae.Tec has been developing its innovative technology for 7 years: the technique is based on an enclosed photobioreactor system fitted in a 40-foot easily transportable module. “These modules have significant advantages over the traditional ‘open pond’ method “in terms of space requirements, capital costs and operational costs,” said Stroud.

Algae.Tec is focused on supplying algae to “fuel producers, such as biodiesel plants, ethanol plants and refineries.” The various types of algae have been narrowed down to six unique strains, each appropriate for different markets. Strains with a high percentage of sugar “could be employed in locations with a strong demand for cellulosic feedstocks,” and those with a higher level of lipids, for example, could be used in markets “with a strong demand for biodiesel feedstock.”

A two-module demonstration plant is planned to begin operations next year in Australia. Stroud says the company will produce algae “at a high productive rate” of up to 250 tons of dry algae per module. The construction of commercial production facilities could be in operation by 2014.

View the full article here:

USA investors back algae oil energy

Venture Beat reports that VCs are bullish in 2011 when it comes to cleantech IPOs, especially with regard to algae oil and solar companies.

Asked about the cleantech IPOs market, venture capitalist Nat Goldhaber of Claremont Creek Ventures says he’s expecting 2011 to be a good year for more public offerings in cleantech.

Venture capitalist Alan Salzman of VantagePoint, who has backed Tesla and BrightSource, is also betting 2011 will be a good year for cleantech deals. He told Reuters that he believes IPOs this year will come from utility-scale solar power plants, algae oils, smart grid components and thin-film solar panel makers (many companies in this space have recently received funding and are planning to build factories).

“You’re going to see much more of an active pipeline,” Salzman said. “You will see five to 10 significant, multibillion dollar IPOs in the U.S. this year, and as many meaningful acquisitions.”

Oilgae: features Algae.Tec’s McConchie-Stroud System

Oilgae published an article yesterday featuring the Algae.Tec McConchie-Stroud system that is designed to produce renewable fuels, including biodiesel and bio-jet fuels.

“Oils which can be refined into biodiesel; carbohydrates (sugars) that can be used in the production of ethanol; proteins that can be used as feedstock for farm animals; and protein and carbohydrate biomass that can be combined to produce jet fuel.”

The article also summarises the relationships Algae.Tec has with overseas and local companies, including MOU’s with China, and Leighton Contractors in Australia.

The article says the technology is efficient, low-maintenance, and use up only one-tenth of the land surface as contrasted to the current pond method used to produce algae, and discusses Algae.Tec’s successful listing on the ASX.

Read the full article here:

Sky Business News: interview with Roger Stroud

View the live interview here:

Executive Chairman Roger Stroud was interviewed on Sky Business News about Algae.Tec, its share price performance since the listing, and plans for the future

Explain the product Algae.Tec is developing:We’ve been working for about 7 years, working with and growing micro algae, which is a unicellular plant. It is the smallest plant that can grow. It’s also a synthetic plant that needs light to grow, and it has the potential to grow fast.

How different are the algae you are working with and the algae that people see growing on our swimming pools? In many ways not a lot different; the ones growing on the pools, are green algae and are quite high in sugars, the ones we have selected to use are made up of about 50% oils, 30% sugars, and about %20 proteins. Proportions change depending on the algae. The vegetable oil can be converted to bio-diesel, the sugars can be converted to ethanol, the residual biomass can be pelletized as high protein and fed as animal feed or the biomass itself can be hydro cracked and turned into green jet fuel. There is a lot of utility in the plant.

Are there still trials going on around the world to formulate a type of green jet fuel that will work? As far as green Jet fuel’s concerned, it’s a reality, the science is there. What is the challenge is getting sufficient yields in growing the algae that on price terms can compete with the existing mineral sourced fuels. We are comfortable that we have a solution to that, which includes a 40ft sea container, we have appropriate mechanisms inside, and we have already completed a pilot study in the US, in Atlanta. But the external validation is what we raised the money for.

Where was the technology developed? My partner Earl Macconkey, and I have been involved in the bio-diesel industry for over 10 years. He was the head of the Dow Chemical division for 25 years, so he is steeped with chemical engineering. We met in 2003 in Boston, and realised a sustainable product for bio-fuel is very important.

Do you need a lot of space to produce algae as a fuel? No we don’t. That’s one of the advantages. We need our light collectors. But in terms of actual space required, in comparison to the pond method, we are on about a thousandth of a footprint. So its actually quite discreet and it doesn’t matter what type of land it’s developed on.

What has happened for Algae.Tec since its listing on the ASX? I am delighted to say that we listed on 24c and now we are on 28c. So we are holding our own very nicely. I guess one could say shareholders to date have a 25% gain on their investment. And at the moment we have 560 or so shareholders. And we are looking forward to significant fresh announcements as time goes by.

Back to the IPO, how much money did you raise and what exactly will these funds go towards? We raised $5.1 million and we are very happy with that sum. The funds will be applied as per the prospectus. The majority of the funds will be applied to developing the modules and allocating them to the demonstration facility down at the Minildra site just above Nowra. That process will take approximately 12 months to get the modules up and going and hopefully are getting pretty close to complete validation at that particular time. Coincidentally we will be complying to the appropriate authorities to get approval for a commercialised arrangement, in other words, a commercial plant of some 200-250 modules and that will include EPA approval, government approval and so on.

When will the test plant be finished? In terms of erection, the latter part of this year. It shouldn’t take too long to go through a validation process.

For those who may not be familiar, please explain the McConchie-Stroud system. The McConchie-Stroud system is an engineering solution to growing a plant, which is the micro algae. Historically speaking, most solutions being pursued at the moment are, what is called the open pond method, and the open pond method is more of an agricultural scientific solution as opposed to applied engineering. In our particular case we have developed a particular mechanism along with various other additions to create a very small footprint in which we can create the algae. In essence, what we’ve done is to, in all cases, it’s a photosynthetic solution, and so algae needs light. But what we have done is, as opposed to the pond method, which involved taking the system to the light, we’re bringing the light to our system. As a result, we’ve been able to reduce our footprint significantly.

As an advanced bio-fuels company, what are the main challenges what will be facing your business? As in any engineering solution, there are always a certain number of challenges, but as far as the future is concerned, it will not be as much a challenge as a technical procedure, which the engineers will need to develop as we go into large scale commercial. That’s probably the major issue, none of it’s rocket science and we don’t see any of it as insurmountable at all so really the word challenge is not as appropriate as developing a procedure which will always be improved upon, as any industrial process is as we go down the track. This is, as far as we’re concerned, the start of a long journey where we hope to produce many projects in many countries, but we’re in the baby step stage at this point. So the challenges will become often more corporate and procedural as we go down the track and will diminish in terms of any of the engineering issues.As far as the algae industry goes, there is quite a few aspirants in the US mainly the Pond Method. We don’t look at it as competition; we look at it as collaboration – in the sense that it’s good to have an industry to have a few participants in it.

Lastly, what is so compelling about algae as a bio-fuel as far as shareholders and potential shareholders are concerned? We’re at a very interesting stage as far as the world is concerned, in terms of energy. If you look at the oil price over the last decade, as a result of this huge increase in demand for that particular product, which is oil, we will continue to see pressures applied to supplying. It also allows alternative solutions to the pursuit of oil to be adopted and we are one of those alternatives. We think that growing algae is a very sustainable, environmentally friendly, environmentally responsible approach to a solution.

WA Business News: Algae.Tec launches IPO

Business News has released an article on Algae.Tec’s IPO and ASX listing:

“Global bio-fuels firm Algae.Tec has been launched on the ASX, with the clean technology firm’s share price edging to 25 cents shortly after listing.”

The article goes on to explain how the growth and harvesting system works:

“ [The system] uses carbon dioxide waste products capable of producing bio-diesel and bio jet fuel…It grows with photosynthesis, and this algae produces three main products, and depending on the algae the proportions change, but it can produce vegetable oil, a protein, or essential amino acids similar to soybean, which is the major protein in stockfeed, and simple sugars.”

Roger Stroud Executive Chairman of Algea.Tec says:

“We are confident that this will be viable within fuel industry costings. The vegetable oils can go to bio diesel, the sugars can go to ethanol and into gasoline.

The article explores the new and growing relationships with overseas and local companies:

“The firm has agreements in place to deploy its technology in Australia and China, and also holds an agreement with Leighton Contractors for engineering and project management expertise.”

Business News ends the article, highlighting Mr Stroud’s future goals:

“Algae.Tec now has offices in Atlanta, Georgia, and Subiaco, and aims to target large carbon dioxide users in Western Australia such as Alcoa and Woodside Petroluem.”

Read the full article here: