Seambiotic, a developer and grower of marine microalgae for the nutraceuticals and biofuel industries using flue gas from electric power plants, has signed a license agreement and a joint venture agreement with Yantai Hairong Electricity Technology Ltd. and Penglai Weiyuan Science & Trading Ltd., companies associated with China Guodian Corporation, to establish a Chinese joint venture for the commercial cultivation of microalgae.
China Guodian is one of China’s largest power companies with more than 100 power stations. The joint venture with Seambiotic will utilize Seambiotic’s technology for the cultivation of a number of types of microalgae for use in the animal and fish foodstock and nutraceutical industries.
The first commercial farm of 12 hectares is expected to cost $10 million, will be situated in Penglai, utilizing carbon dioxide from the Penglai power station; it is planned to become operational during 2010. The agreement contemplates additional farms to be established based upon a pre-agreed timetable.
Seambiotic was founded in 2003 in cooperation with the Israel Electric Corporation (IEC) to grow and process marine microalgae for the nutraceutical and biofuel industries while acting as a carbon capture technology. Seambiotic’s research efforts are performed at a pilot plant at IEC’s power station near Ashkelon, Israel, where various species of marine microalgae have been successfully cultivated using the power station’s CO2 emissions released directly from their smokestacks; the microalgae are in turn sold into the nutraceutical market or used as feedstock for animal or fish and biofuel.