Click here for more information about Algenuity
Click here for more information about Liqofluxphenometrics515R1
Visit cricatalyst.com!Evodos Separation Technology

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 A.I.M. Archives

Copyright ©2010-2017 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.

twittertopbarlinks_eventstopbarlinks_requesttopbarlinks_archives

From The A.I.M. Archives

— Refresh Page for More Choices
The GNT Group, a market leader in using algae as natural ingredients for color, has begun construction of an additional spirulina plant at its headquarters in Mierlo, the...
Tafline Laylin writes for Inhabitat.com about the elegant solution that Romanian designer Alexandru Predonu has conceived that uses solar energy to power a rotating desal...
Global Algae Innovations, with headquarters in San Diego, California, and cultivation/production facilities in Lihue, Hawaii, have introduced a new algae harvesting syste...
A Quebec-based company that specializes in the manufacturing and commercialization of marine and seaweed-based products for agriculture and horticulture constructed a new...
Sarah Karacs reports for @CNNTech that Japanese firm Euglena has been cultivating a type of algae for use in food and cosmetics. But it sees a range of other potential us...
The genome of the fuel-producing green microalga Botryococcus braunii has been sequenced by a team of researchers led by a group at Texas A&M AgriLife Research. The r...
Marlene Cimons, nexusmedianews.com reports that researchers at the University of California San Diego and Sapphire Energy have successfully grown a genetically engineered...
ExxonMobil and Synthetic Genomics Inc. have announced that, in joint research into advanced biofuels, they have modified an algal strain to more than double its oil conte...
WesTech Engineering, Inc. and Utah State University’s Sustainable Waste-to-Bioproducts Engineering Center (SWBEC) are jointly engaged in developing processes for more eff...
David Erickson writes in the (Montana) Missoulian that Clearas Water Recovery, a Missoula tech company formed eight years ago, has developed a patented process to use alg...
The U.S. Department of Energy (DOE) has announced the selection of three projects to receive up to $8 million, aimed at reducing the costs of producing algal biofuels and...
Memory Maninga reports for Zambia Daily Mail that in Mansa, the capital of the Luapula Province of Zambia, spirulina is being grown in ponds in the communities because of...