twittertopbarlinks_eventstopbarlinks_requesttopbarlinks_archives
Click here for more information about Liqofluxphenometrics515R1
Visit cricatalyst.com!Readers Poll

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.

Visit our 2017 International Reader’s Poll Platinum Sponsors

bigelow mbiolp_link sfcc

From The A.I.M. Archives

— Refresh Page for More Choices
For plants and algae that carry on photosynthesis, light can be too much of a good thing. On a bright, sunny day, a plant might only be able to utilize 20 percent or less...
Since hydrogen fuel cells produce electricity, we are increasingly thinking about hydrogen as a successor to crude oil. But where will the hydrogen come from? Its ecologi...
Agcore Technologies LLC, producer of Agcore Spirulina, has announced that their 2016 expansion project to support their growing aquafeed demand is in the completion proce...
Algatechnologies Ltd (Algatech), of Kibbutz Ketura, Israel, has become part of the FoodConnects consortium, as winner of a pan-European competition for the Food4Future pr...
Discovering which algae species is best suited to make biofuel is no small task. Researchers have tried to evaluate algae in test tubes, but often find lab results don’t ...
Researchers at Iowa State University, in Ames, Iowa, are developing technology, using algae, that improves the efficiency of wastewater reclamation. The system uses verti...