Algae.Tec and Lufthansa sign collaboration agreement to build aviation biofuel production facility in Europe
19 September 2012
Algae.Tec Limited and Lufthansa 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 algae oil produced by the project must 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.
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 performance in productivity, product yield, carbon dioxide sequestration, and production unit footprint requirements versus agricultural crops and other competitive algae processes in the industry.
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