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Industrial biotechnology brings Solix n BASF together 11

BASF SE and Solix Biofuels, Inc. today announced that they have signed an agreement to investigate the use of algae to produce certain chemicals for BASF. Solix is a leading developer of algae cultivation technology systems and will test multiple algae species in its proprietary growth system, AGS, for BASF. Further terms were not announced.

As the world's leading chemical company, BASF is continuously exploring innovative technologies to provide products to its customers. The use of algae, which consume CO2 as part of their growth cycle, could potentially provide an attractive way to produce certain chemicals from a renewable source.

 "This collaboration with Solix Biofuels demonstrates BASF's commitment to generate growth from industrial biotechnology," said Harald Lauke, President of the Specialty Chemicals Research at BASF.

 "Algae represent a fascinating addition to BASF's technology portfolio as they offer the potential to produce a number of exciting specialty products. After surveying the algae industry, we chose to work with Solix based on its knowledge of algal biology and the strength of its AGS."

We are excited to begin this important development with BASF, said Doug Henston, Solix Biofuels' CEO.

 "Algae offer the potential to produce a diversity of chemical products in addition to their fuel potential. We believe our AGS offers a high unique level of flexibility in its production capability, ideally suited for the ultimate large-scale cultivation of a broad range of algae species with multiple commercial applications. 

This partnership affords us the opportunity to work with a leader in the chemical industry to produce some unique chemical products from algae while continuing to pursue the production of fuel from algae."
Thu September 23 2010 12:23:11 AM by Arden solix  |  BASF  |  speciality products  |  co2 2685 views

Comments - 5

  • Arden wrote:
    Thu September 23 2010 12:27:17 AM

    What are the chemicals that they are talking about ?
    Is it the chemicals that Solix has found a way to process that has brought about this tie up ?
    Is it the ability to grow commercial scale algae of differeent types ?

    HAS the AGS system played a role in the tie up ?

    Did BASF look for a algae expertise for CO2 absorption OR for a way to make new chemicals ?

    Vote Up! 3 Vote Down! 0

  • Shankar wrote:
    Thu September 23 2010 12:35:59 AM

    Good news ! BRILLIANT questions Arden !

    In one news item that you posted in a long time, you have also answered Andres Abraham's view that novices put cut and paste news while actually nothing new is happening.

    You asked the right questions. There cant be a better forum to exchange such questions and answers.

    In fact I would like to add another question.
    LIke everyone else it is personal and am neither proud nor ashamed of asking such a question.

    What business/ investment opportunity does it open up ?

    For investors ?

    For large Chemical companies like BASF ?

    Does it open up opportunities for small and medium chemical companies ? Should they tie up with other leading algae tech companies for making chemicals ?

    Would this deal trigger more such tie ups ?
    Would it trigger more algae start ups spring up ?

    Back to my question.

    What are the investment opportunities ?

    Vote Up! 3 Vote Down! 0

  • Monterio wrote:
    Fri October 29 2010 04:22:42 AM

    Overall, this is good news and I wouldn?t be surprised if we see more algae companies making the same kind of announcements.

    Its a great tactic for Solix to tie up with BASF and manufacture speciality chemicals one of which is expected to market at $ 800 per gallon.
    That is a pretty high price and can be pretty profitable too.

    It is ofcourse a wellknown fact that speciality chemicals market are not big and when volume of quality assured s supplies increase from renowned suppliers, the price falls and the profitability also will fall.

    However, it will help a number of algae biofuel companies to find quick profits to fund their activities in commercialising algae biofuel.

    Thus co products with high profitability extends the runway for algae biofuel companies.

    Vote Up! 1 Vote Down! 0

  • Larsyn wrote:
    Fri October 29 2010 02:23:18 PM

    Is this just another ploy to protect Basf's own chemicals from competition.

    Vote Up! 2 Vote Down! 0

  • Sat October 30 2010 11:34:25 PM

    @ Arden

    What are the chemicals that BASF is interested in ? Any idea ?

    Vote Up! 0 Vote Down! 0

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