[ad name=”PhycoBiosciences AIM Interview”]

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
Phys.org reports that, in collaboration with the Berlin, Germany LED manufacturer FutureLED, scientists at the Technische Universität München have developed a unique comb...
Tess Riley writes in TheGuardian.com about how spirulina may be able to combat malnutrition in developing countries. Spirulina is one of the oldest life forms on Earth, c...
Kevin Quon writes in Seeking Alpha about the financial plights and pivots of Solazyme, the algae industry’s most high profile recent IPO. In a year that started with a sh...
West Chester, Pennsylvania-based International Sustainability Group, Inc., an innovative green technology and sustainable manufacturing company, has entered the algae mar...
Fort Myers, FL-based Algenol has announced that the U.S. Environmental Protection Agency (EPA) has approved fuels made from Algenol’s process as an advanced biofuel, meet...
In an age where customer input is as easy as a click, OriginOil has tapped directly into its intended market to R&D their next generation algae harvester -- with a de...
Caroline Scott-Thomas reports on Food Navigator about an online algae discussion on the social media site Reddit where Mars' chief agricultural officer Howard-Yana Shapir...
Hammenhög, Sweden-based agribusiness Simris Alg has announced the launch of its first consumer products. The algae farmers’ exclusive omega-3 supplements and superfoods w...
Montague, Prince Edward Island-based Solarvest has announced that it has used its algal-based production platform to express bioactive therapeutic proteins. The proof of ...
The European (FP7) algae project Sustainable PoLymers from Algae Sugars and Hydrocarbons (SPLASH) has been developing a platform technology for the conversion of third ge...
None of us would be alive if sperm cells didn’t know how to swim, or if the cilia in our lungs couldn’t prevent fluid buildup. But we know very little about the dynamics ...
Sebastian Rich reports on PBS Newshour about the Central African Republic city of Bangui, which has been caught in the crossfire between warring Muslim and Christian grou...
Jeff Gelski writes in foodbusinessnews.net that algae oil is now in the toolbox of alternative oils shown to replace partially hydrogenated oils (PHOs), which cause trans...
The U.S. Environmental Protection Agency (EPA) is developing an early warning indicator system using historical and current satellite data to detect algal blooms. EPA res...
Simris Alg, a pioneering agribusiness producing omega-3 from farmed algae, has been declared one of Sweden’s 33 hottest companies in new technology. The renowned list is ...