Aurora Algae: Biofuels Digest’s 5-Minute Guide

Address:

3225 Investment Blvd. Hayward, CA. 94545

Company description: Aurora Algae (formerly known as Aurora Biofuels) is a producer of high-performance, premium algae-based products for the pharmaceutical, nutrition, aquaculture and fuels markets.

Business: 
Aurora burst onto the scene in June 2008 with the announcement that it had raised $20 million in series A financing from Oak Investment Partners, Noventi and Gabriel Venture Partners. Gabriel and Noventi had participated in a seed stage round. Aurora uses technology developed by Berkeley professor Tasios Melis for an open-pond algae production system to produce a range of products from algae. The company says that its process reduces the cost of biodiesel production by half, compared to current methods.

Model: 
Owner-operator

Past milestones: 
AlwaysOn named Aurora Algae in the AlwaysOn 100.

The company completed an 18-month pilot in early 2009. In California, Aurora Algae announced that it has succeeded in optimizing its base algae strains to more than double CO2 consumption and fuel production, and has proven these results in an outdoor open system over the last several months. The company said that it has developed a proprietary process which allows for the superior selection and breeding of non-transgenic algae.

Aurora Algae investors include Oak Investment Partners, Noventi Ventures and Gabriel Venture Partners.

In September 2010, the company confirmed its emergence as Aurora Algae. The company also said that it would be transitioning from a pilot technology development to full-scale commercialization of the Company’s proprietary algae products, including high concentration eicosapentaenoic acid (EPA Omega-3 fatty acids), high-density proteins, fish meal and renewable fuels. The company’s key technology – an optimized strain of salt-water algae that is lighter in color than wild-type algae—allows deeper penetration of sunlight, thereby extending the zone for algae reproduction and increasing yield. The company said it has also adapted a technique used in the waste-water industry for low-cost algal harvesting.

In October 2010, Aurora Algae announced the company is expanding operations with the opening of a new regional headquarters in Perth, Australia. The new office, to be led by Australian Managing Director and Aurora Algae Co-Founder Matthew Caspari, will oversee the construction and operation of Aurora Algae’s first commercial-scale facility in the Northwest region of the country. In Q3, the company announced an expansion of their product portfolio to include renewable fuels, high concentration Omega-3 fatty acids, high-density proteins and fish feed.

In March, Aurora Algae launched a line of high-performance, premium algae-based products to address the pharmaceutical, nutrition, aquaculture and fuels markets. The portfolio is comprised of four “algae-to-product” (A2 product) categories:

A2 Omega-3™—a family of Omega-3 oils aimed at the nutraceutical and pharmaceutical markets with the goal of providing a natural, sustainable and cost-effective alternative to fish oil and fermented products. The first offering in this family, A2 EPA Pure™ will make the benefits of EPA available to a broader market since it is derived from an allergen-free, vegetarian source.
A2 Feed™—a family of protein-rich algal grains specifically designed for the animal and aquaculture markets to supply a high-quality feedstock to raise sustainably farmed fish and healthy animals.
A2 Fuel™—a family of biomass and biodiesel applications providing renewable alternatives for transportation and other energy-related markets.
A2 Protein™—a family of protein-rich powder products for the food and beverage industry.

In April, Aurora Algae opened its demonstration facility in Karratha, Western Australia, where the Company’s algae-based biomass is being harvested for products in the nutraceutical, pharmaceutical, aquaculture and renewable energy markets. The company has also secured an option agreement on over 1,500 acres of land located near its demonstration facility, which will allow it to begin the process of constructing a full-scale commercial facility equipped to manufacture thousands of tons of algae-based biomass annually.

Aurora also announced that it had received $946,000 AUD in additional LEEDS grant funding, and $750,000 AUD in research and development (R&D) tax credits from the Australian government for hitting key production and construction milestones. The company previously announced $750,000 AUD in LEEDS funding as part of a total potential grant of $2 million AUD.

Future milestones:
Aurora produces 15 metric tons of biomass per month from its open and operating demonstration facility in Karratha Western Australia. The Company has secured land and intends to break ground on a full scale commercial facility close to the current site. This facility will size up from the current six – 1acre ponds to 250 acres at opening and will continue to scale exponentially.

Metrics:

Aurora leapt into the news this spring with a projected $1.30 cost for algae in its second-generation technology, due in 2013.

Company website