In 1996, Frederic Scheer had a vision when he began to market the concept of compostable plastics. This vision led Cereplast from a pioneer to a leader in the bioplastics industry. Yesterday, the vision of Mr. Scheer and the team at Cereplast provided a breakthrough announcement that will change the face of their industry forever with the transformation of algae into bioplastics.
Cereplast has developed breakthrough technology to transform algae into bioplastics with the intention to launch a new family of algae-based resins that will complement the company’s existing line of Compostables and Hybrid resins.
If successful, Cereplast algae-based resins could replace over 50% of the petroleum content used in plastic resins, possibly having a profound effect on the oil industry. Such companies as Exxon and BP have started to invest money in the algae production business because of the potential in their industry.
Mr. Scheer, who is not only the founder of Cereplast but also serves as their Chairman and CEO, was asked about the algae research which is ongoing at his company. Mr. Scheer was quoted as saying, “Our algae research has shown promising results and we believe that in the months to come we should be able to launch this new family of algae-based resins. Algae-based resins represent an outstanding opportunity for companies across the plastic supply chain to become more environmentally sustainable and reduce the industry’s reliance on oil. We are still in the development phase, but we believe that this breakthrough technology could result in a significant new line of business in the years to come.”
Mr. Scheer continued to speak of the efforts made at Cereplast and how new players are entering the field by stating, “Based on our own efforts, as well as recent commitments by major players in the algae field, we believe that algae has the potential to become one of the most important “green” feedstocks for biofuels, as well as bioplastics. Clearly, our focus will be on bioplastics. However, for our algae-based resins to be successful, we require the production of substantial quantities of algae feedstock. We are very encouraged when we see big players entering the algae production business, including Exxon’s $600 million investment in Synthetic Genomics and BP’s $10 million investment in Martek Biosciences.”
Currently, Cereplast is an over-the-counter stock that is trading in the $0.13 range. Should this company come close to the expectations of Mr. Scheer, Cereplast may be a company that changes the face of not only their industry but the portfolio’s of investors worldwide.
Cereplast has proven to be a friend to the environment. Perhaps it is only a matter of time before Cereplast becomes a friend of investors on Wall Street.