Algae.Tec Plans $200 Million Bond Sale to Fund Clean-Fuel Plants

Algae.Tec Ltd. (AEB), an Australian producer of algal oils used in clean fuel, plans to sell $200 million of bonds in Europe to fund expansion in the Americas.

The company intends to start the offering within the next month and complete it by mid-year, Chairman Roger Stroud said by telephone. The proceeds will finance new factories in Texas and Brazil that will produce algae for biofuels, he said.

Algae.Tec is expanding after the U.S. approved a $1.01-a- gallon tax credit for producers of algal fuels. That followed a decision by the Environmental Protection Agency in September to raise the requirement for biodiesel in refined products. A year earlier, U.S. regulators allowed airlines to fly passenger jets using a biofuel blend.

Algae.Tec plans to retain a stake of more than 90 percent in the new factories, where feasibility studies will be completed this month, according to Stroud. The bond sale is “the most appropriate mechanism for this type of project providing a substantial leverage on equity,” he said.

Click here to read the story.

Did you find this article useful? Join the EB Circle!

Your support helps keep our journalism independent and our content free for everyone to read. Join our community here.

Most popular

Featured Events

Publish your event
leaf background pattern

Transforming Innovation for Sustainability Join the Ecosystem →