A COMPANY that uses algae to produce biofuels and store carbon dioxide has made its debut on the stock exchange after raising $5.1 million from investors.
Algae.Tec, an Australian-US collaboration, has signed a memorandum of understanding with the ethanol producer, Manildra, for a demonstration algae production plant at Manildra's starch and ethanol facility at Nowra on the NSW South Coast.
Leighton Contractors has a non-binding commitment to build and operate the Nowra plant, which Algae.Tec hopes will begin commercial production of algae biofuels by early next year.
Algae.Tec's executive chairman, Roger Stroud, said the plant would use an enclosed algae production method to minimise the use of land and consumption of water.
"It's significantly less energy intensive and is a sustainable procedure, whereas turning human food crops into energy is not sustainable," he said.
Algae.Tec raised its capital at 20 cents a share in a float which closed in November.
Mr Stroud said it would be the first algae company to be listed on any major bourse in the world.
The company will target the diesel market, the blended petrol and ethanol market and the green market for jet fuel.
"Our studies to date show that we can supply algae at a dollar rate which will allow the conversion to advanced biofuels at a rate competitive to fuels (already) sold," he said.
Algae.Tec also has signed a memorandum of understanding with the Hong Kong company, Pacific Minerals, and the Australian company, RKD International, for the establishment of a Chinese joint venture. It is aimed at introducing Algae.Tec's technology to China.
