'Huge interest' in algae biofuel

Go Green: Aquaflow Bionomic Corporation chairman Barrie Leay pours one of the first samples of green crude made from algae from waste treatment oxidation ponds.

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An algae biofuel developer is about to seek up to $20 million to fund international expansion after discovering it can make a crude oil substitute.

Until now, Aquaflow Bionomic Corporation has been focused on creating biodiesel from wild algae formed at Blenheim's waste treatment oxidation ponds, but it has discovered it can also make green-crude from the same algae.

"What we discovered after the team blowing stuff up or whatever, that there is a lot more potential in here than simply biodiesel," director Nick Gerritsen said.

The find has opened up another potential market for Aquaflow.

"There are a number of other dimensions of value now that were not there before."

The size of the biodiesel market based on a 20 per cent blend, was around $330 billion and the aviation market with a 20 per cent blend was $71b.

Aquaflow chairman Barrie Leay said it was an exciting development because the company could now separate fuels like diesel and aviation, as well as a range of high-value chemicals, from green-crude.

Aquaflow was now getting ready to focus on expanding the New Zealand operation into overseas markets. Gerritsen said Aquaflow would be looking to raise between $5m and $20m from within New Zealand and internationally. Last year it received a $3m injection after Pure Power Asia, a renewable energy business based in Singapore, took a 19.9% shareholding.

Gerritsen said the board was still finalising how it would raise the money, but it could look at releasing an information memorandum for habitual and professional investors and a prospectus for private individuals.

The company had already received huge interest from offshore and was speaking with five corporations, which were listed among the top 250 in the world.

"A number of the largest companies in the world are actually coming to us because they are interested in the opportunity to access sustainable biochemicals.

"These companies aren't stupid; they have been watching us for a long time."

Gerritsen said Aquaflow would save a lot of money and time if it worked with a company that was already operating globally.

The technology developed by Aquaflow was not for sale, but people could invest in the company.

He envisaged Aquaflow sitting within existing businesses, similar to how Intel has its computer chips inside different laptops.

Leay said Aquaflow was also concentrating on delivering high-quality clean water for irrigation or industrial use.

Removing algae from wastewater left the effluent water much cleaner than with existing treatment systems.