Aquaflow seeks funding for 16 pilot plants

New Zealand-based biofuel start-up Aquaflow Bionomics has embarked on a quest to raise A$2.5 million (US$2.19 million) to bankroll the first of up to 16 pilot demonstration plants for a new algae fuel technology. A possible initial public offering (IPO) is also on the drawing board over the next 12 months. Conventional biofuel concepts involve mostly extracting lipids from algae grown in controlled environments. But Aquaflow has come up with a novel way of harvesting “wild algae” from municipal sewage ponds, farm outflows and polluted water courses and turning it into green crude or refining it into other biofuels and chemicals. Aquaflow operates a pilot plant at a New Zealand sewage pond, where it has stockpiled 40 tons of algae, some of which has already been used to produce jet fuel. The company expects to generate revenues of A$5.3 million (US$4.65 million) in 2010-2011, rising to A$94.4 million (US$82.91 million) in 2014-2015. Aquaflow Bionomics is majority-owned by Singapore renewable energy investor Pure Power, which holds a 19.9% stake. UOP LLC has signed a memorandum of understanding with the start-up to help roll out its technology. (August 13, 2009)