August 8, 2011

US Algae Biosciences starts to expand

Algae Biosciences Inc. (AlgaeBio), based in Adamana's east of Holbrook, has begun a US$5 million expansion that is expected to be complete between January 1 and February 28 of next year.

CEO Andrew Ayers, a marine biologist who learned about the vast underground sea known as the Coconino aquifer in the 1990s, formed AlgaeBio nine years ago with the intent of utilising its unique properties.

"We analysed a water sample and it was remarkably pure. My first thought was, 'let's grow shrimp,'" recalled Ayers. "But at that time the Chinese and the Taiwanese were seriously getting into the shrimp industry at such a low cost that it would have been impossible to compete."

It was then that Ayers came upon the idea of using the algae produced in the aquifer. "At the time, everyone was really getting interested in omega-3 (fatty acids) and we knew the fish themselves get it through the food chain, the algae, to begin with. So we decided to extract it directly from the algae."

Ayers obtained an exclusive patent for aquaculture use of the Coconino Aquifer's uniquely pristine brine water and with the market demand for omega-3 fatty acid oils far exceeding industry production capacity, the company is now ready to make a serious impact on the global microalgae industry.

AlgaeBio is now extracting the ultra-pure omega-3 fatty acid oils for the nutraceutical and food additive industries, and the demand for such a product is what is allowing the company to expand and provide new jobs in the community.

According to Todd Kimberley, director of media relations, ABI currently has seven permanent, full-time employees and that number is projected to grow to 10 in the fall of 2012, 15 in the fall of 2013 and 19 in the fall of 2014, not including temporary construction jobs.

This first phase of expansion includes bringing 1,500 bioreactors online to produce omega-3 fatty acid oil and algae meal at large-scale commercial production levels.

"Over the years, we've carried out a screening process with various species of algae and found a half-dozen that grow well in our system. I've started a process now to basically push these algae to produce higher amounts of omega-3," stated Ayers, adding that the high protein powder that's left over is one of the best protein sources in the world.

It is anticipated that AlgaeBio's production levels by fall 2012 will be 6,000 kilogrammes of whole algae powder, 1,500 kilos of omega-3 fatty acid oil and 3,700 kilogrammes of algae meal. Production levels by fall 2013 are anticipated at 16,400 kilos of whole algae powder, 4,700 kilos of oil and 12,000 kilos of meal. By the fall of 2014 those numbers are expected to increase to 16,500 kilos of whole algae powder, 4,700 kilos of oil and 12,000 kilos of meal.