Biofuels developer Algae.Tec has signed on with refining group Biodiesel Industries Australia to refine algal oil from the Perth-based company’s biofuel production facility near Sydney.
Algae.Tec announced today a deal to refine 50 million litres of algal oil into biofuels, which will then be sold to mining and industry in the Hunter Valley region.
The oil will be produced at Algae.Tec’s carbon capture and biofuels production facility to be built next to Macquarie Generation’s 2,640 megawatt power station at Bayswater in Sydney.
Algae.Tec initially announced the biofuel production facility proposal last week.
The system creates algal oil as the algae feeds on the carbon dioxide, which can be converted into biodiesel and hydrogenated to grade A jet fuel.
Biodiesel Industries Australia currently refines up to 17 million litres per year, and managing director Andrew Hill said the Algae.Tec contract would put it on a world scale for biofuels refining.
Algae.Tec executive chairman Roger Stroud said algal biofuel would offer both the state of NSW and Australia as a whole added fuel security at a time when traditional petroleum refining is scaling down.
“We look forward to working with BIA, they are real leaders in the biofuel refining sector.
At 1:00PM, WST, Algae.Tec shares were up 6.2 per cent, at 25.5 cents.
