Neste Oil to buy RAE’s crude algae oil
June 24, 2014
enewable Algal Energy, LLC (RAE), a developer of sustainable products from microalgae, for nutraceutical, animal feed, and renewable fuels markets, has announced a contingent off-take agreement with Neste Oil, the world’s largest producer of renewable diesel.
This agreement will enable Neste Oil to purchase RAE’s crude algae oil on a commercial scale for use as a feedstock for producing renewable fuel, and is contingent on RAE’s future production capacity and on compliance with future biofuel legislation in the EU and US, among other factors. The agreement is non-exclusive.
“We are honored to partner with Neste Oil,” said Jeffrey S. Kanel, Ph.D., CEO of RAE. “Neste Oil is…committed to producing a sustainable energy source. This commitment aligns perfectly with RAE’s mission and values, and we look forward to assisting Neste Oil to produce renewable fuels that will benefit the world.”
“We are looking forward to see RAE’s first commodity-scale production facility become reality so that we can utilize sustainable algal oil as one of our feedstocks to produce NEXBTL-products,” said Lars Peter Lindfors, Neste Oil’s Senior Vice President, Technology.
RAE has operated a two-acre demonstration site in Arizona for five years. Recently, RAE commissioned its patented harvester to demonstrate efficient algae harvesting without the use of chemicals. The harvester will support up to 100 acres of algae production in open ponds, and harvest 2,200 metric tons of dried algal biomass annually.
RAE is working with a project developer to deploy RAE Technology at the first of multiple commodity-scale (5,000 acres) production sites in North America. Such a site will have a total expected annual production capacity of more than 140,000 metric tons of dried algal biomass.
Algal biomass from this future site will be used to sustainably produce algal oil for Neste Oil, and multiple other co-products, including protein powder, omega-3s, and carotenoids, including beta-carotene, lutein, zeaxanthin and beta-cryptoxanthin, for use in nutraceuticals.
“RAE Technology is readily scalable to achieve commodity costs necessary to participate in large global markets, including renewable fuels,” said Kanel.