PERTH, Australia and ATLANTA, Sept. 18, 2012 /PRNewswire/ -- Algae.Tec Limited is pleased to announce that Algae.Tec and Lufthansa have signed a Collaboration Agreement for the construction of a large-scale algae to aviation biofuels production facility.
The site will be in Europe adjacent to an industrial CO2 source.
Lufthansa will arrange 100% funding for the project. Algae.Tec will receive licence fees and profits from the Project, which will be managed by Algae.Tec.
As part of the Agreement, Lufthansa commits to a long-term offtake agreement of at least 50% of the crude oil produced at an agreed price
The agreement forms the base for a long-term cooperation between Algae.Tec and Lufthansa for the industrial production of crude algae suitable for conversion into aviation kerosene and conventional diesel fuels
The Agreement states:
"Both parties will jointly develop a large-scale industrial algae oil production plant based on Algae.Tec's technology and operating support, and Lufthansa's offtake commitment for such algae oils."
Algae oil produced by the Project shall fulfill at all times the EU Renewable Energy Directive ("EU-RED") and shall be certified according to ISCC-Standard.
This agreement builds on and supersedes the MOU signed between the two parties in January 2012. It is subject to final Board approval of both parties and the final sign off for the algae oil conversion into aviation kerosene. A final feasibility report will be completed once the first site has been selected.
See algae to aviation fuel video here: http://www.youtube.com/watch?v=VA_xiEHSTRI&feature=youtu.be
See more Algae.Tec images here: http://algaetec.com.au/news-room/image-gallery/media/image-gallery/berlin-airshow/
About Algae.Tec www.algaetec.com.au
Algae.Tec Ltd, (ASX:AEB, FWB:GZA:GR, OTCQX :ALGXY) founded in 2007, is an Australian advanced renewable oil from algae company that has developed a high-yield enclosed algae growth and harvesting system, the McConchie-Stroud System. The Company has offices in Atlanta, Georgia and Perth, Western Australia.
The Algae.Tec enclosed modular engineered technology is designed to grow non-GMO algae on an industrial scale, and produce biofuels that replace predominantly imported fossil fuels.
The technology has demonstrated exceptional performance in productivity, product yield, carbon dioxide sequestration, and production unit footprint requirements versus agricultural crops and other competitive algae processes in the industry.
Algae.Tec offers a profitable solution for carbon emitting companies and industries seeking carbon dioxide reduction technologies. The algae growth system is an alternative to Carbon Capture.
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SOURCE Algae.Tec Limited