PERTH, Australia, Jan. 14, 2013 /PRNewswire/ -- Algae.Tec (ASX: AEB, OTCQX: ALGXY) today announced approval from the Australian Government for an AU$12.15 million cash refund on Australian and overseas development expenditure for the financial year 30 June 2012 to 30 June 2015.
The terms of the payment allow for an initial AU$27 million spend on Algae.Tec technology developments, of which the Australian Government will reimburse 45% or AU$12.15 million. The approval is to support the funding of at least three algae bioreactor facilities in Australia, Asia and the USA. The refund will be paid in cash to the Company following expenditure.
Expenditure additional to the initial budget of AU$27 million will also be eligible for further funding grants.
The Algae.Tec enclosed bioreactor technology takes waste C02 from power and manufacturing facilities and uses it to grow valuable algae oil for transport fuels.
The tax offset payments, called R&D Tax Incentives, are awarded and managed by the Australian Government entity AusIndustry and are designed to provide business with a "more predictable, less complex," financial support structure.
Algae.Tec Managing Director, Peter Hatfull said the Company had applied for the approval last year as part of a range of attractive financing options available for the Company's growth plans.
"It was a rigorous process involving a complete review of our technology and global expansion plans," said Hatfull.
"We see this as a real endorsement of our technology and strategic direction, and we are very pleased to have the support of the Australian Government's AusIndustry.
"This is excellent news for the Company and our Australian and international investors."
About Algae.Tec www.algae-tec.com
Algae.Tec Ltd, 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 bioreactor, an 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.
The Algae.Tec solution is less than one tenth the land footprint of pond growth options, while its enclosed module system is designed to deliver the highest yield of algae per hectare, and solves the problem of food-producing land being turned over for biofuel production.