Download now: Cannabis Cash

Algae Biofuel Company to Build 6 Factories Globally

Raising $600 Million in Funding

Written by Swagato Chakravorty
Posted September 25, 2012 at 4:06PM

Algae.Tec Ltd. (ASX: AEB), a company that makes algal oils for clean fuel, is hoping to raise around $600 million as well as secure fuel supply deals that will enable it to build six factories in Brazil, Sri Lanka, Australia, and the U.S.—all by 2015.

Bloomberg reports:

“We will be using different project finance structures for all of these projects and they’ll all be roughly $100 million,” Chairman Roger Stroud said by phone from Sao Paulo.

Back in July 2011, airlines received U.S. approval to have passenger planes use compounds that are made from inedible plants and organic waste blended with fuel derived from petroleum. Up to 50 percent biofuel is acceptable.

Deutsche Lufthansa (ETR: LHA) became the first airline to routinely offer flights running on biofuel, and Algae.Tec announced on September 19 that it is working with the airline to develop a factory in the south of the region.

Production is expected to begin by 2015. The airline will not only provide some funding, but it will also buy at least half of the produced fuel at an undisclosed price.

Algae.Tec is also in discussions with Brazilian partners as it hopes to build one, possibly more, factories in that country. Over in Sri Lanka, it is working with Holcim Ltd. (PINK: HCMLY) to scope out a possible plant. And finally, it has claimed it is “well advanced” with investigations into possible facility sites in the southwest of America and Australia.

Related Articles

Gevo Biofuel Opportunity
Following a patent infringement ruling, Gevo is allowed to sell its biofuel at will.
Federal Funding Supports Biofuel Research
Two federal departments support the expansion of biofuel research.
Avista Corp. Invests in Algae Biofuels
Energy company Avista Corp. (NYSE AVA) could help Matrix Genetics get its research in algae-based oil off the ground...


Is it Safe for You to Buy Coal Stocks Yet?
Shedding Light on the Death of the Coal Industry
Investing in the Future of Solar
How to Profit Like an Investment Banker
Without the ITC, is Solar Still a Good Investment?
Will THIS Kill the Solar Industry?
The Secret Behind the Gatwick Gusher
Is the UK Running Out of Options?
Buffett Has a $4.5 Billion Stake in This Refiner
Refiners Are Safe Havens During the Low-Price Period
An OPEC Civil War Erupts
Strange Things Afoot in the House of Saud
Energy Utilities NEED the Internet of Things
Stay connected to stay on target!
The Lithium Revolution Just Got Hotter
Utility-Scale Lithium Batteries Taking Off
Metal Oil Investing 101
Meet the Oil of the 21st Century
Tesla's (NASDAQ: TSLA) Final Deathblow
The Ultimate Tesla Play