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Blogs under tag Petroalgae

PETROALGAE AND SKY AIRLINE TO COLLABORATE Posted by Shankar on Mon November 15 2010 11:23:17 PM

http://www.petroalgae.com/docs/press/PetroAlgae and Sky Airline to Bring Green Jet Fuel to Chile.pdf

Biofuels IPO, is the time right ? Posted by Shankar on Mon October 11 2010 04:24:45 AM

An article in Venture Beat, by Iris Kuo foresees that Petroalgae's public issue may fail or be withdrawn which is what i predicted some time ago.
There is no mention of AlgaeTec issue, which also I expect to falter.
I have not followed  Bioalgene much in the past. I understand that they are running out of cash. The present path for algae biofuel companies that are running out of cash is to follow Aurora Algae. That is reposition from Aurora biofuels to Aurora Algae.That is co products first and fuels next. Hope Bioalgene will also follow the same.Read the article below
Biofuels company Amyris had its IPO last week, and the results were considered a decent exit for some of its investors (mostly its early-stage ones). But don?t expect that to have any effect on fellow biomaterials IPO hopefuls Gevo and PetroAlgae or to give a lift to the lesser-known and struggling Butalco or Bioalgene.
?I think we?re starting to see the wheat be separated from the chaff in terms of the companies in this space that have a legitimately good technology and a good business model," said Mark B?nger, research director for Lux Research.
One example of so-called chaff may well be PetroAlgae (pictured below), which filed in August for a much-derided $200 million IPO despite having no history of revenues, ever. The company is expected to withdraw or see the IPO flop big-time. Gevo is looking to raise $150 million, and its chances may be a little better ? B?nger says the company "has a plan and technology that can work ? but they?re also a little early and trying to raise a lot of money."
As planned IPOs approach for some companies and funding begins to run out for others, consider it a reckoning of sorts for the biofuels and biomaterials industry. 
Despite government incentives (like the recently passed $1.01 per gallon tax credit for algae fuel makers) and billions invested, biofuels and biomaterials companies have been slow to make a dent in the market ? perhaps in part because of the capital-intensive nature of the industry. According to a recent report by Lux Research, global biofuel capacity represents only three percent of petroleum fuels, while bio-based materials have only grabbed one percent of the market from plastics.
Biofuels and biomaterials companies face both risks and opportunity. The cleantech IPO market is less than ideal: Biofuels player Codexis IPO?d in April at the low end of its range, raising $78 million, far short of its $100 million goal. Battery startup A123 systems had a superstar IPO last September, ending its first day of trading at $20 a share, but now trades in the $8 range. Trony Solar and Solyndra both recently pulled their IPOs.
But there?s hope. Biofuels are expected to grow 7.8 percent each year to hit 52 billion gallons by 2015, and biomaterials will grow at 17.7 per year to reach 8.1 million tons by 2015. Last week, Amyris and smart meter maker Elster both IPO?d below their forecasted ranges, but both companies have held steady in trading. And a year ago, Amyris likely would have struggled with going public at all. Despite okay-not-stellar debuts, Amyris and Codexis seem to have a solid shot at success.
"Amyris and Codexis actually have legitimate business models," B?nger said. 
"If the stars align oil prices with the environment they can be phenomenally well positioned not just to be profitable but to be landmark companies in the way Google and Microsoft defined that age."
Over the next few years, it looks like the sector will become more defined ? companies will have to show they can weather the struggle to scale to commercialization and grow, or fall victim to lack of funding. Here?s a look at the winners and losers, according to Lux Research:
WinnersCoskata and Enerkem, which specialize in technologies that convert waste feedstocks into ethanol. Enerkem just opened a plant in Canada and earlier this year got a $51.5 million infusion of cash from Waste Management.Solazyme, which has an R&D deal with Unilever and raised $52 million in August. The company?s outlook is good, said Lux research associate Andrew Soare, "thanks to strong partnerships and technology that circumvents the costly dewatering step that precludes other algae companies from cost parity."Virent, which is trying to commercialize a process that turns sugar into the hydrocarbons that can be blended into fuel. It, too, has strong partnerships with companies like Cargill, Honda and Shell.
LosersButalco, which makes technology that genetically optimizes yeast to improve biofuel yields. It lags competitors in terms of scale, which, Soare says, may prove crippling.Bioalgene, an algae-based biofuels company based in Seattle. The company has a ?serious need? for cash and may be forced to make other algal products that are higher-value ? similar to what Aurora Algae is attempting to do in a rebranding that ditched its Aurora Biofuels moniker.Syntec Biofuel, which, like Enerkem and Coskata, plays in the waste-to-ethanol business. However, it has been struggling to get funding for over a year, and the benefits of its technology are not clear.

Will Petroalgae's public issue takeoff !!? Posted by Shankar on Thu August 12 2010 10:35:14 PM 20

Petroalgae by no means the market leader, files for IPO at a time when the market is not upbeat.

Not only is Petroalgae not the market leader, it is also not market ready.

In my opinion the $ 200 m offering will not be a great success and will spoil the chances for other companies with reasonably advanced technologies like, Solazyme, Saphire, Solix, Algenol etc

PetroAlgae Inc. (OTCBB: PALG) announced that it has filed a registration statement with SEC relating to its public offering of its common stock.

The market for green companies is pretty weak at present.
Is this the right time ?
More importantly is this the right offering ?

Petroalgae has been making announcements pretty regularly in the recent past. It announced signing up an understanding with a Chile based company recently.
Before that it signed up with a South Korean company.

It has an understanding or arrangement with one of India's largest company called Indian oil to produce algae for oil.

I have not seen any progress in any of these agreements.

Petroalgae has a MOU with a global giant called Fosterwheeler for engineering. That was made a couple of years ago. But that doesnt say much about the issue.

Such a company going for an IPO without a proven model is not good for the industry. This is not just what I feel. Many analysts too feel the same.
Let us have your views too.

Petro Algae, Eco Frontier, Korea enter into an agreement Posted by Shankar on Thu July 29 2010 09:30:38 PM 5

PetroAlgae Inc, a renewable energy company that licenses its commercial micro-crop technology globally, today announced that it has signed, with Eco-Frontier, a cleantech management firm and Asian renewable energy developer based in Seoul, Korea.

Petro Algae announced an agreemnt with a company in Chile a few months ago and in Nov 2009, it announced an agreement with one of Indias largest companies called the Indian Oil corporation.

Very little is known of the progress made after that.