Algae startup Aurora BioFuels raises $20 million in Series A financing

June 11, 2008

In California, algae startup Aurora BioFuels announced that has raised $20 million in series A financing from Oak Investment Partners, Noventi and Gabriel Venture Partners. Gabriel and Noventi has participated in a seed stage round. Aurora will use technology developed by Berkeley professor Tasios Melis for an open-pond algae production system, and will produce biodiesel from algae. The company says that its process reduces the cost of biodiesel production by half, compared to current methods.

Algae background

Algae-based research and development continues to pick up in pace, even though the US Defense Department is estimating that the current production cost of algae oil exceeds $20 per gallon. Recent developments include:

In Washington state, a group of entrepreneurs, scientists and corporate executives have formed the Algal Biomass Organization to accelerate the development and commercial application of algae biomass. The group will organize the second Algae Biomass Summit in Seattle on October 23-24
“The jury is out on all [algae systems],” Sandia National Laboratory researcher Ron Pate told Popular Mechanics.
In Washington state, algae start-up Bionavitas said that it will take up to four years to reach commercial levels of production,
but that its waste water treatment business is developing faster.
In Florida, PetroAlgae said that it hoped to reach its commercial production stage next year, as algae producers begin to differentiate over varying methods of getting past the algae “shade wall” and other issues in achieving commercial scale.
New Zealand’s Aquaflow said that it has developed a scalable method for producing and harvesting algae in the wild, and envisioned expanding to a series of 1,000 acre facilities in the US and other countries.
A research team from the University of Texas has developed a new blue-green algae (cyanobacteria) that secretes a soft cellulose, glucose and sucrose. The team told Science Daily that the microbe “could provide a significant portion of the nation’s transportation fuel if production can be scaled up.” The cyanobacteria is grown from sunlight and salty water at facilities on non-agricultural land. The team said that the
cellulose is a soft, gel-like type that is easy to break down, and that the microbes secrete the sugars and cellulose, making it possibly to continually harvest biofuels feedstock without destroying organisms and using powerful enzymes to extract sugars.
In Texas, US Sustainable Energy is awaiting lab results from a test of biocrude production using 20 pounds of algae as a feedstock. The company recently ran its initial test of 20 pounds of 5% oil-content algae feedstock with 40 percent water content, and resulted in an ignitable oil product.

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Written by Jim Lane · Filed Under Producer News