GG archive: Algae.Tec

Saving the planet with slime?

The following was originally posted in April, 2011

ALGAE.TEC. (ASX code AEB) was set up to raise funds and commercialise the production of algae using a system designed by Earl McConchie and Roger Stroud. Their private company, Teco.Bio Pty Ltd, owns the technology; Algae.Tec’s principal asset is a royalty-free licence to make money from it around the world.

A pilot plant in Western Australia has produced microalgae that have yielded 52 per cent lipids and 47 per cent triglycerides (vegetable oil) with the rest as biomass.

The company reckons that means they can supply feedstock for biofuel producers at a price that makes biodiesel and biojet fuel cost-competitive with standard diesel.

Figures in the company’s prospectus last year suggest that each module, about the size of a 40-foot sea container, should pay for itself in the first year and earn clear profits for the rest of its ten-year life.

They are looking at algae factories of up to 200 modules, and aim to be in commercial production by the end of next year.

DISCLAIMER

The GG is licensed to drive a motor vehicle and has had formal training in the use of a chainsaw. He is not an adviser and has no links with the financial services industry. He is not sponsored by anyone. He does own shares in a number of "green" companies, and has the losses to prove it. He will refrain from dealing in these shares for at least 48 hours before and after writing about them.

The company has virtually no track record, and with 80 per cent of the shares held by the founders’ Teco.Bio, there are not many on the market for ordinary investors. Expect occasional wild swings in the price, and sometimes wide gaps between the buying and sellingprices for AEB.

The Gamber has had to pay 38c per AEB share, so he has limited himself to 3,000 shares, for a total cost of $1,160.

There are more sellers than buyers around that price at the time of writing, so the Gambler could well find that he should have been patient a little longer.

g.g.@theair.com.au.

Adelaide Independent Reporter 2013