Money

Algae.Tec entering nutraceutical market

December 17, 2013
AlgaeIndustryMagazine.com

Algae.Tec’s production facility Shoalhaven One, near Sydney, Australia

Algae.Tec’s production facility Shoalhaven One, near Sydney, Australia

Algae.Tec has entered into an exclusive Collaborative Agreement with Nutrition Care Laboratories, based in Melbourne, Victoria, Australia. “A decision has been made to focus, in the short term, upon the growing of high quality, high value, nutraceuticals, with an immediate focus on Chlorella and B-Carotene algae. Other nutraceutical algae products will follow,” said Algae.Tec Chairman Roger Stroud.

This announcement comes in the wake of a Validation Report from Sydney Environmental and Soil Laboratory Pty Ltd – a National Association of Testing Authorities approved company – that confirmed the application and production capability of the Algae.Tec system in an industrial setting. The report, according to Stroud, said the algae yields achieved are of a sufficiently high level to justify the establishment of a new dedicated algae production facility at Nowra, south of Sydney in New South Wales.

To speed up the path to profitability, Algae.Tec has identified the nutraceuticals market to be worth an estimated $205 billion by 2017 (according to market forecasters, Transparency Market Research) as a significant opportunity that offers:

  • Relatively low capital establishment costs
  • Potential for high gross margins on revenue
  • Significant and growing market in Asia in particular

As part of this strategic opportunity, Algae.Tec has teamed with Nutrition Care, a manufacturer and marketer of high value nutraceuticals for many of the best known nutraceutical brands in Australia and internationally, with a focus on Asian markets in particular.

Initial efforts for the companies will focus on Chlorella, which they agree is an increasingly attractive high protein, nutritional food source, and is highly sought after in Asia; and B-Carotene, which is in demand as a nutritional supplement for vision, immunity and overall health.

Wholesale prices for the Chlorella and B-Carotene are currently $16,000 and up to $90,000 per ton, respectively, according to Algae.TEC. A healthy gross margin on revenue is anticipated as capital costs are expected to be in the vicinity of $7,000 per ton.

Production of Chlorella, and B-Carotene, is expected by the companies to be 2,000 tons in 2014, 4,000 tons in 2015, 8,000 tons in 2016, and 10,000 tons by 2017.

Algae.Tec has entered into a long-term lease at an industrial warehouse complex in Nowra. This, they say, will facilitate a rapid start up of production. Sources of capital are expected to be equity, tax rebates and internal cash flow.

More Like This…

HOME Algae Industry Jobs

Copyright ©2010-2014 AlgaeIndustryMagazine.com. All rights reserved. Permission required to reprint this article in its entirety. Must include copyright statement and live hyperlinks. Contact editorial@algaeindustrymagazine.com. A.I.M. accepts unsolicited manuscripts for consideration, and takes no responsibility for the validity of claims made in submitted editorial.

From The A.I.M. Archives

— Refresh Page for More Choices
The Algae Biomass Organization (ABO) released the following statement calling on the EPA to include Carbon Capture and Utilization strategies in rules proposed June 2, 20...
A new, outdoor system at the University of Dayton Research Institute has been producing a high volume of algae since its installation in the summer of 2013, even through ...
Four years after the first optimistic calculations, the experimental cultivation of algae at Wageningen University in the Netherlands appears to be meeting expectations. ...
A University of New South Wales (UNSW)-led team of researchers has discovered how algae that survive in very low levels of light are able to switch on and off a weird qua...
Jamie Radford writes in the Illawarra Mercury that Pia Winberg, from the University of Wollongong, believes that the South Coast of New South Wales, Australia (NSW) is in...
Algae Industry Magazine is pleased to announce a new Algae 101 series by our popular blogger, Mark Edwards, Professor, Arizona State University. The Algae Solutions to Na...
Algae manufacturer Cyanotech Corporation has announced implementing three major initiatives to improve Astaxanthin production at their Kailua Kona, Hawaii-based cultivati...
Steven Mufson reports for the Washington Post that Algenol Biofuels estimates hackers have attempted to break into its computers 39 million times in four months this year...
Matthew Carr was recently named executive director of the Algae Biomass Organization (ABO), the leading trade association for the algae industry. His presence will soon b...
Channelnewsasia.com reports on three young Spaniards who harvest seaweed, a culinary delicacy, as a way for them to stay out of Spain’s troubled financial waters. 35-year...
Phys.Org reports that scientists Jolanda Verspagen and Jef Huisman of the University of Amsterdam, The Netherlands have concluded that rising CO2 concentrations in the at...
The EPA has released the Annual Use of Pesticides in the U.S. Report. We now know that American farmers apply roughly a billion pounds of toxic chemicals intentionally in...
Expanding from its initial work in algal biofuels, General Atomic’s (GA’s) Advanced Biological Processes team has focused on the rising need for food globally, specifical...
Oregon State University researchers are combining diatoms, a type of single-celled photosynthetic algae, with nanoparticles to create a sensor capable of detecting minisc...
SCHOTT AG, of Mitterteich, Germany, and Algatechnologies Ltd. (Algatech), based at Israel’s Kibbutz Ketura, have signed an R&D agreement to strengthen their partnersh...
James “Jamie” Levine took over the reigns at Sapphire Energy in July of this year as former President and CEO Cynthia “CJ” Warner stepped down, retaining her role as chai...
Algix, parent company of Solaplast, will be inaugurating their algae-to-plastic facility in Meridian, Mississippi, on November 14, 2014. Solaplast's facility will be focu...
MicroBio Engineering, Inc., of San Luis Obispo, California, has introduced a full suite of open pond microalgae growth systems designed for quick deployment of research- ...