June 22, 2012
SeeAlgae Technology, Grupo JB sign algae farm deal
SeeAlgae Technology GmbH (SAT) has agreed on contract with Grupo JB ("JB"), one of the leading bioethanol producers in Brazil, to supply and install a one hectare "dual-use" algae processing facility.
Once operational, the farm will be primarily used to produce algae biomass and bioethanol from both natural and genetically modified algae strains. Algae biomass is used as a replacement for soybean meal in feed for livestock and fish. This production process will also yield algae lipids which can be used to make biodiesel and certain biochemicals, among other compounds.
Under the EUR8 million (US$10.04 million) agreement, SAT will design an algae farm and provide its algae cultivation technology to JB, oversee the farm's installation, and ensure the farm's initial productivity.
Separately, SAT has also entered into a joint venture with Grupo JB to market the Company's algae production technology in Brazil. The project, "ALGAS DO BRASIL," will make use of JB's extensive commercial contact network to enhance SAT's marketing efforts. ALGAS DO BRASIL will be 63% owned by SAT and 37% owned by JB.