PERTH, Western Australia and ATLANTA - Algae.Tec Limited (ACN 124 544 190), which has secured the exclusive global rights to a pioneering highly-efficient algae growth and harvesting system (the McConchie-Stroud System) that produces algal products (such as algal oil and biomass) that can be used to generate sustainable bio-fuels, today announced two MOUs for non binding commitments to deploy the technology in China and Australia.
Algae.Tec is currently undertaking an Initial Public Offering by way of a prospectus dated 16 July 2010 (Prospectus) with the intention to list on the ASX by the end of September 2010. The Company's ASX code will be AEB.
The photo-bioreactors which are at the heart of the McConchie-Stroud algae production technology are designed to generate four revenue streams: oils which can be refined into biodiesel; carbohydrates (sugars) that can be used in the production of ethanol; proteins that can be used as feedstock for farm animals; and protein and carbohydrate biomass that can be combined to produce jet fuel.
Roger Stroud, Executive Chairman of Algae.Tec said:
'The MOU with Hong Kong company Pacific Minerals Limited and Australian company RKD International Pty Ltd provides for the establishment of a Chinese joint venture with the objective of introducing Algae.Tec's technology into China with the establishment of commercial production facilities. We look forward to negotiating definitive binding agreements for this joint venture in the coming months.'
'The MOU with Australian ethanol producer Manildra Group will see several photo-bioreactors installed at Manildra's starch and ethanol production facility at Nowra, NSW, which Algae.Tec anticipates could be up and running in Q2 2011 subject to receipt of all necessary approvals and execution of binding agreements.'
Algae.Tec already has an MOU with Leighton Contractors for a non binding commitment to construct and operate facilities at Manildra's Nowra site and elsewhere throughout Australia.
The McConchie-Stroud uses low-maintenance technologies and a highly efficient solar system to produce algae in one-tenth of the land surface as compared to the current pond method for producing algae.
The Algae.Tec System is designed to deliver the highest yield of algae per hectare, and solves the problem of food-producing land being turned over for bio fuel production.
Algae.Tec is backed by investors from the United Kingdom, Asia and the USA who have invested more than $5 million in research and development of the algae production technology over the past seven years.
According to the Prospectus: 'The Company will, upon listing on ASX, be well positioned to pursue a significant market opportunity. The McConchie-Stroud System has the potential to provide a liquid transport fuel that can be produced industrially and commercially while diminishing the environmental impacts of fossil fuel derived fuels.'
A copy of the Prospectus (and a supplementary prospectus lodged August 25, 2010 in relation to Algae.Tec's entry into the MOUs and an extension to the Prospectus closing date to 17 September 2010) is available on request from the Company and at www.algaetec.com.au. Investors should consider the Prospectus (and supplementary prospectus) in deciding whether to acquire any securities in Algae.Tec and will need to complete the application form that accompanies the Prospectus.