Aurora Algae to IPO by Year End?

January 9, 2012
AlgaeIndustryMagazine.com

oss Kelly reports in the Wall Street Journal Australia that Aurora Algae, of Hayward, California, and Karratha, Western Australia, are planning to raise US$100 million by mid-year to build a commercial facility for producing biodiesel for use in Australian mining trucks, as well as other coproducts from algae, notably Omega-3 products.

This investment round follows earlier investments of about US$40 million from U.S. venture capital firms Oak Investment Partners, Gabriel Venture Partners and Noventi Ventures. According to Matthew Caspari, managing director of Aurora Algae’s Australian operations, the company plans to begin the process for a U.S. public listing by the end of the year.

Aurora’s new facility is planned for Karratha, a fast-growing mining town in Australia’s Pilbara region, which accounts for a quarter of the world’s trade in iron ore by sea. Construction of the facility is due to begin later this year for completion in early 2013, replacing an existing demonstration plant in Karratha.

Added Caspari, “Profit, especially in the shorter term, is heavily weighted towards the Omega-3 product. And by having that higher margin product we’re able to sell fuel at parity with diesel.”

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