[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
In a recent study, published in PLOS ONE Journal, the influence of light intensity on the growth and lipid productivity of Nannochloropsis salina was investigated in a fl...
Kevin Valine at the Modesto Bee writes that the California city of Modesto may sell the algae that grows in its roughly 1,000 acres of sewer ponds at its Jennings Road wa...
In one of the first studies to examine the potential for using municipal wastewater as a feedstock for algae-based biofuels, Rice University scientists found they could e...
Using microalgae to capture CO2 is a complex process, especially in flue gas environments, reports an editorial by IEA Clean Coal Centre in worldcoal.com. There are many ...
EnAlgae researchers have published an economic model to help to explore the economics of cultivating macroalgae at sea. The model and report can be found here as outputs ...
Tom Redmond and Yuko Takeo report for Bloomberg.com that, after 10 years of developing algae as a nutritional supplement generating $37.8 million in annual revenue, Japan...
Melissae Fellet reports in Chemical & Engineering News that new materials containing ultraviolet-absorbing molecules found in algae and reef-fish mucus could serve as...
Dr. Gloria Naa Dzama Addico and Kweku Amoako Atta deGraft-Johnson write in Graphic Online about the plight of the fisher folks in Ghana — in the throes of depleting fish ...
Researchers at Michigan State University have built a molecular super protein tool that streamlines the molecular machinery of cyanobacteria making, they say, biofuels an...
While researchers have long suspected that climate change will lead to stronger and more frequent algal blooms, a new fusion of climate models and watershed models has pr...
The last post positioned algae solutions for bioremediation of poisoned water and soil that can reduce the risk of arsenic exposure and the onset of autism spectrum disor...
An enzyme responsible for making hydrocarbons has been discovered by Texas A&M AgriLife Research scientists studying the common green microalga Botryococcus braunii. ...