AlgaeTec Executive Chairman Roger Stroud. (Photo: AlgaeTec/FIS)
AlgaeTec to build algae biofuels plant in China
Thursday, January 19, 2012, 23:20 (GMT + 9)
AlgaeTec Ltd has signed a binding Memorandum of Understanding (MOU) for a 50/50 equity joint venture (JV) in China with Shandong Kerui Group Holding Ltd. The first project under the JV will be the construction of a 250-module algae biofuels facility in China to be equally funded by both parties.
The facility will be purely focused on algae for the production of transport fuels.
The facility will produce approximately 33 million of algae-derived transport oil and approximately 33,000 tonnes of biomass per year at a combined value of more than USD 40 million, and will capture 137,000 tonnes of waste carbon dioxide, according to AlgaeTec Executive Chairman Roger Stroud.
AlgaeTec Limited is an advanced company devoted to produce biofuels from algae, with a high-yield enclosed algae growth and harvesting technology, the McConchie-Stroud system.
The Kerui Group, based in Shandong Province, in the second-largest oil province in China, has extensive business interests in the People’s Republic of China (PRC) primarily in the manufacturing of oilfield and petroleum industry equipment, and power generation and building facilities. The Group has offices in 18 countries outside China.
Following the completion of the 250-module plant, the JV will seek funding to build new projects exceeding 1,000 modules and to engage with CO2 emitters in the Greater China region.
Last month AlgaeTec signed a biofuels MOU with the European airline Lufthansa, and announced a biofuels production and carbon capture deal with the Sri Lanka subsidiary of industrial giant Holcim, the world’s largest cement and building materials company.
Separately, AlgaeTec Ltd announced it is raising AUD 5 million (USD 5.2 million) via the issue of 12.5 million shares.