Algae Products' Internationalization

Project Information

ALGAEPRINT

Grant agreement ID: 650549

DOI

10.3030/650549

Project closed

EC signature date 12 September 2014

Start date 1 October 2014

End date 28 February 2015

Funded under

• SOCIETAL CHALLENGES - Climate action, Environment, Resource Efficiency and Raw Materials

Total cost

€ 71 429,00

EU contribution

€ 50 000,00

Coordinated by

ALGAENERGY SA
Spain

Periodic Reporting for period 1 - ALGAEPRINT (Algae Products' Internationalization)

Reporting period: 2014-10-01 to 2015-02-28

Summary of the context and overall objectives of the project

Microalgae are an inexhaustible source of proteins, lipids, pigments, vitamins or carbohydrates, among others. They find potential commercial applications in several sectors of economic activity, providing a high growth business opportunity, while simultaneously implying a substantial environmental and social benefit.
In this sense, AlgaEnergy (AE) was established as the vehicle to consolidate the know-how generated in different specialized Universities during 4 decades. It is led by an experienced and successful management team, and counts on IBERDROLA as shareholder of reference and technological partner.
The company has invested 7 years and millionaire resources in applied R&D, with the aim to develop, optimize and scale-up the technology. Finally, with the support of the European Commission (EC), AE has built in 2014, in world premiere, the first semi-industrial microalgae plant which directly transforms industrial flue gas emissions to natural and innovative products of commercial interest.
Having demonstrated its technology, AE is now ready to orientate it towards the marketing of its already commercially viable products, and in this scope of ideas, it successfully submitted its project “Algae Products' Internationalization” to the SME Instrument Phase 1.
Therefore, during the last 5 months and with the financial and coaching support of the EC, AE has been consolidating its business plan according to the identified tasks summarized in the working package descriptions of its project ALGAEPRINT, which were essential to assess whether the project provides a solid and innovative business opportunity.

Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far

After carrying out ALGAEPRINT Phase 1 with the support of specialized partners in different fields, and having deep-dived into the markets peculiarities such as TAM/SAM/SOM, prices, potential customers, entry barriers and key action items to achieve commercialization readiness, amongst others, the conclusions are very positive:
Having spent 3 weeks in AE’s offices working exclusively on this project, DELOITTE concluded that there is a solid, innovative and very attractive business opportunity for AE in the agriculture, aquaculture, cosmetics and human nutrition sectors, which is on top a role model of a high growth circular business. The Coach sent by the EC who we have worked with, was also convinced about the consistency of the project. In fact, during the task to approach potential customers during phase 1, AE already signed its first commercial agreements, and got into a MoU negotiations phase with different multinationals, which can be considered as a confirmation of its potential.
Some action items have been identified in order to develop the project successfully, which will be incorporated in ALGAEPRINT's phase 2 proposal.
In addition, together with the IBVF-CSIC, AlgaEnergy has been able to estimate the funding requirements to carry out phase 2, which are slightly below the amount considered in its first proposal.

Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far)

Direct & Indirect Impacts have been confirmed, as follows:

- Direct employment increase in AlgaEnergy: 6 skilled people with university degree (one of them was already hired during Phase 1).

- Even a conservative scenario provides a quite attractive Internal Return Rate of the semi-industrial culturing plant.

- Making the company financially autonomous after several years of applied R&D stage, allowing it to generate revenues, which in the scope of a circular business model, will be partially invested into further developing sustainable sectors with long term business potential (bioenergy, feed, etc.)

- Externalized jobs creation, particularly in Andalusia, where unemployment rate is >50%. Currently about 40 skilled scientists work externalized but exclusively for AlgaEnergy in different R&D Programs, being AlgaEnergy therefore an important partner for universities and research centers.

- Marketing and communications impact: European role model example of circular economy.

- Substantial increase of the company’s attractiveness towards investors in Phase 3. The BP below considers an expansion of the plant to 3 Ha in the 3rd year (9 hectares are available if needed). A 3 Ha plant will be capturing around 600 tons of CO2 per year directly from the emitting chimney, while a 9 Ha would be capturing 1800 tons of CO2 per year.

AlgaEnergy's Photobiorreactors