Can This Algae Investment Lower American Manufacturing Costs
Many companies have tried their hand at cultivating photosynthetic algae in massive outdoor facilities — a list that includes well-established multinationals such asExxonMobil (NYSE: XOM) and hopeful start-ups such as Sapphire Energy. Unfortunately, despite the influx of investment, few have had success. Although many venture capitalists are focusing on more modular processes than those conducted in open ponds or runways, outdoor algae cultivation remains the Holy Grail of chemical manufacturing. The size and volume could, theoretically, lead to near-zero production costs over time. See the potential?
Exxon and Synthetic Genomics went back to the drawing board last year to incorporate genetic engineering into their approach — rather than relying on wild-type algae strains — while Solazyme (NASDAQ: SZYM) pivoted long ago to algae that do not require sunlight for growth. Solazyme’s approach is paying off in a significant way, but that doesn’t mean photosynthetic algae processes are destined to the dustbin of history. One unlikely company has increased its ownership of a transformative photosynthetic algae technology from 35% in early 2011 to 60% this quarter. The technology could significantly lower American manufacturing costs, diversify product lineups for a wide-range of companies, and put algae back on the map. Can Green Plains Renewable Energy (NASDAQ: GPRE) succeed with its ambitious plans for BioProcess Algae?
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