In China, Australia’s Algae.Tec has signed a binding MOU for a 50/50 equity joint venture (JV) in China with Chinese company the Shandong Kerui Group Holding Ltd.
The first project under the JV will be for the construction of a 250-module algae biofuels facility in China to be equally funded by both parties.
At the same time, the company is seeking A$5 million through the sale of 12.5 million shares at 40 cents each.
Algae.Tec Executive Chairman, Roger Stroud, said the facility will be the first of its size and type in the world, being purely focused on algae for the production of transport fuels.
“The equally funded 250-module biofuels facility to be built in Dongying, in Shandong Province, will produce approximately 33 million litres of algae derived transport oil and approximately 33,000 tonnes of biomass per annum at a combined value of over $40million, and capture 137,000 tonnes of waste carbon dioxide. And this should be the first of many,” said Stroud.
The JV will accelerate the Algae.Tec project expansion and roll-out throughout China, targeting corporations and environmental administration authorities.
Algae.Tec will provide the technology – the McConchie-Stroud biofuels production system – and the Kerui Group will provide knowledge and expertise to accelerate business development and the identification of viable project sites. They will also advise on dealing with relevant authorities to secure the required approvals.
Last week Algae.Tec announced the four-fold expansion of its Atlanta, Georgia based Algae Development & Manufacturing Centre to 70,000 sq ft to scale-up production line capability for existing and upcoming commercial projects.