XL Renewables Transitions to Phyco BioSciences
May 12, 2010, by David Schwartz
XL Renewables, Inc., as part of it’s marketing strategy, has formed Phyco BioSciences, Inc. to commercialize algae biomass as a food and industrial crop. Phyco is currently developing a commercial production facility near Phoenix, Arizona to meet customer demand. Beginning in 2011, Phyco plans to work with qualified contract producers by providing them a production and harvest platform with algae cultivars in return for a commitment to processing and marketing services.
“We have buyers ready for the delivery of product and the need to scale production,” said Ben Cloud, President of Phyco BioSciences, Inc. “The advances in cultural systems and algae cultivar development provide a significant reduction in production costs that open some very attractive markets now. Phyco has developed a functional production, processing and marketing structure geared to attract capital for expansion and development of new markets for algae biomass, and which are designed to limit the inherent risks of crop production while creating market efficiency and scalability.”
According to Phyco, biofuel is currently the lowest value opportunity for algae biomass and still requires further research and development to become commercially viable. Current demand for higher value algae components provide an opportunity to establish a viable algae biomass industry regardless of further biofuel advances. However, Phyco expects biofuels will become a solid market opportunity in the future. —A.I.M.