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Alginor`s Ocean Refining Total utilizing technology

Periodic Reporting for period 1 - AORTA (Alginor`s Ocean Refining Total utilizing technology)

Reporting period: 2017-01-01 to 2017-06-30

Today’s businesses for biomarine materials from seaweed are mainly focusing on alginate, resulting in an entire value chain going to waste, as well as pollution of the environment with additives such as formaldehyde and left over raw material. Alginor is addressing this issue by focusing on total utilization of the raw material, which opens up for a new and larger product portfolio, hence increasing the value of each unit of raw material used. In addition, total utilization of the raw material and green methods for extracting the desired components is environmentally beneficial.

Alginor’s vision is: “Leaving a fossil-based society by unlocking the hidden treasures of seas and oceans”, which shows in all of the company’s projects. Alginor is exchanging heavy pollution and utilization of finite resources for green processes and renewable resources. Our biorefinery for Seaweeds is paving the way for a clean, cost-effective and resource-efficient technology for biomarine processing called «AORTA» (Alginor’s Ocean Refining Total utilizing Application). AORTA will create a novel value chain for seaweeds, unlocking the potential of European oceans, enabling significant job and growth creation through investments in research and innovation. The AORTA technology will tackle the issue of macro algae raw material utilization in Europe and increase it from 10 % up to 100 %, to extract high-value components for sale to selected global customers.

Our business will generate employments in a region that is affected by downsizing in the oil industry, and the unemployment is greater than it has been for a long time. In addition to generating employments, Alginor will increase the value creation in the region. Alginor will have a positive implication on the society because of its focus on zero emission during the production of the product portfolio and the re-use of energy, hence the surrounding environment will benefit from Alginor’s vision of zero emission.

Alginor will establish a biorefinery for seaweeds based on our highly innovative AORTA technology. The concept aims at total utilization of seaweed by a multiproduct blue biorefinery. The concept achieves cost-advantages through cost-sharing over multiple products such as biopolymers, savoury, bioactive compounds as well as food and feed products. The product portfolio will facilitate a new value chain and meet customer demands, especially according to mega-trends within Pharma & API, Health & Nutrition, Food, Biomaterials, Feed, Agro and Chemical industries. Initial focus in the key markets is the need for high-grade powders to the food-, health- and nutrition industries. Higher product yield from an ultra-pure and formula-specific product portfolio improves overall economy of the project. Further, the AORTA concept will increase raw material utilization to ~100% and make utilization of environmental chemicals in the production obsolete.

After completing the feasibility study, the initial strategy has been validated and expanded. The plan to implement and increase production in controlled steps, to minimize financial risks and optimize technology, is still being followed, and the market strategy to make contracts with customers and partners has proven successful. The letters of intent with customers, cooperation agreements with partners, production agreement with the piloting facility and consultancy agreement with a seasoned Sales and Marketing Director have strengthened Alginor’s potential to quickly reach the market, and to have buyers ready when the products reach the market.
Alginor has carried out a feasibility study on its innovative AORTA technology for sustainable utilization of seaweeds. The feasibility study includes examining the technical- and economic viability, identification of specific technical risks, raw material risks and alternative sources to prove the viability of the technology and highlight the economic benefits. The project has contributed to an elaboration of vital commercial elements in our Business Plan, including development of an organizational and financial strategy. During the research, results has proven very promising and the commercial exploitation of the technology is of vast proportions.
The feasibility study has been a step towards minimizing risks during commercialization of the technology. The ultimate business goal is to establish a large-scale manufacturing unit (the biorefinery). Risk minimization through first performing a large-scale laboratory test to check the viability of the technology and then move onto a piloting plant in order to scale it up. After successfully performing an upscaling and piloting of the technology, a demonstration-plant of smaller scale is built, in order to control project-risk which is fundamental for future financing. The present feasibility study is laying the foundations for an Investor Memorandum (Phase 2).
Value Chain, from starting material to end user markets.