Algae.Tec (ASX:AEB) has, following successful algae growth trials, commenced the expansion of its development and manufacturing facilities in Cumming, Georgia, and the building of an initial small scale plant for the production of algae for the nutraceutical market.
The current global market for all nutraceutical products is in excess of $200 billion per year with 50% in the U.S.
Nutraceuticals are defined as primary nutrients for food products that not only supplement the human diet, but also facilitate the prevention or treatment of diseases and disorders.
On completion, scheduled to be within 6 months, it is expected that this initial plant will produce algae at the rate of 50,000 kilos per year and generate revenues of $1 million per year.
It is planned that this initial production will be increased in stages to achieve a total production capacity up to 2 million kilos per year.
Incremental expansions of algae production capacity in Cumming will be funded by generated cash flow and equity, and will be followed by plants in different geographic locations including Australia.
Algae.Tec’s main focus remains the production of algae for renewable diesel and aviation biofuels, and carbon capture and use, whilst the nutraceutical division will produce near term positive cash flow.
AEB’s has developed a high-yield enclosed algae growth and harvesting system. The Algae.Tec bioreactor, an enclosed modular engineered technology, is designed to grow non-GMO algae on an industrial scale, and produce algae products including proteins, oils and biofuels.
The Algae.Tec solution is less than one tenth the land footprint of pond growth options, while its enclosed module system is designed to deliver the highest yield of algae per hectare, and solves the problem of food-producing land being turned over for biofuel production.
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