PetroAlgae Inc., www.petroalgae.com, today announced it has signed a Non-Binding Commercial Offtake Agreement (via operating subsidiary PA LLC) with Korean renewable energy and cleantech management firm Eco-Frontier.
The co-product of PALG’s commercial micro-crop technology system is high-quality proteins, which are a source of nutritious concentrate (with demonstrably higher amino acid content and composition than alternatives) massively in demand in the animal feed industry.
Additionally the technology yields 25-100x as much as traditional macro-crops like soy or corn, which are used for biodiesel, while enabling 98% of the water used in the system to be recycled on-site. Because the primary mechanism of the system is photosynthetic cellular respiration of the algae, the system acts like a giant CO2 sponge.
Needless to say, all of this puts PALG in a very good position to capitalize in the emerging green sector with proven logistical capability.
This agreement with Eco-Frontier, which wants to solidify a larger foothold for biocrude products in co-firing energy applications in Korea and Asia, calls for the purchasing of up to 850k metric tons of biocrude over three years, starting in 2012, from PALG licensees.
Chairman and CEO of PALG, Dr. John Scott, noted the prominence of Eco-Frontier, a 15-year veteran in their region, as a sustainable solution developer, and cited their proven business model for growth and collaboration as a good foundation on which to build.
Dr. Scott also noted the size of the offtake agreement, citing the huge amount desired as an endorsement of the validity of PALG’s micro-crop technology for biomass output and renewable fuels.
The modular, flexible and highly localized design of the micro-crop systems enable near-continuous production as well, leading to stable output and signifying a realistic and tangible alternative to fossil fuels entirely due to the global scalability of such systems in general.
CEO of Eco-Frontier, Mr. Hae-Bong Cheoung, hailed the opportunity to push biocrude products into more of the market-space as an exciting time both for the companies and the industry as a whole, and recognized this opportunity as a chance to capitalize on the vision of both companies while deriving substantial ROI.