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MBD on Path to IPO

MBD on Path to IPO

August 19, 2011

Giles Parkinson writes in Australia’s Climate Spectator that algae group MBD Energy is one step closer to an IPO after successfully raising $22 million in its fourth round of private fundraising. The company, which captures emissions from utilities and other emitters to grow algae, sought $15 million in its latest fund raising, but upped the target after a strong reaction from investors.

Coal miner Anglo American took part, and now holds a 19.9 per cent, while a new investor, the Sydney-based Sentient Fund, also holds 19.9 per cent. CEO Andrew Lawson said four new funds were among the subscribers to the latest raising, which could reach $25 million. This would take total funds raised over the four rounds to about $50 million. He said the next fund raising would be an IPO, probably within the next 12 months, aiming for between $60 and $100 million.

According to Lawson the latest funds would be used for its one hectare plant at the Tarong power station in Queensland, and also to pursue possibilities with prawn farms, which produce excess nitrogen and phosphorous, which MBD could use to grow algae. “It could be good for both of us – we want the nitrogen and phosphorous and they want to get rid of it,” he said.

The Tarong plant will be about five to six times the size of its test facility at the James Cook University in Townsville. The next step is to establish 80ha and 100ha facilities. Lawson is hopeful that within 10 years, MBD Energy could be capturing up to half the emissions of large coal-fired utilities and then selling the algae as meal, biofuel or other products for a combined price of around $400-$600 a ton, as well as receiving a royalty for emissions abated.

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Sun August 21 2011 01:07:16 AM by Tomcatino 1435 views
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