BONITA SPRINGS, Fla., May 5 /PRNewswire/ -- Algenol Biofuels Inc. today announced a joint development agreement with Valero Services, Inc., a subsidiary of Valero Energy Corporation (NYSE: VLO) to explore combining Algenol's Direct to Ethanol® technology with Valero's expertise in technology and infrastructure for production and distribution of transportation fuels and chemicals. If successful, this collaboration has the potential of resulting in joint venture, commercial scale algae-based facilities and off-take arrangements with a global reach.
"We are excited and encouraged to be working with Valero on this initiative, bringing together Valero's industrial expertise and Algenol's revolutionary technology," said Paul Woods, CEO and founder of Algenol. "This collaborative effort is a significant step on the road to the commercialization of algae-based biofuels and biochemicals."
Algenol Biofuels Inc. is a privately owned company founded in 2006. It recently made a series of announcements including the award of a $25 million grant from the Department of Energy as part of the American Recovery and Reinvestment Act, to build a facility in concert with its partner on the project, The Dow Chemical Company (NYSE: DOW). Algenol also announced a partnership with The Linde Group to develop CO2 capture and management technologies to increase biofuel production from algae. Lee County, Florida is also supporting Algenol with a $10 million incentive grant to open a new 40,000 square foot facility in Lee County, bringing economic diversity and high-tech jobs to the area.
Algenol today possesses the most advanced third generation biofuel technology in the United States. Algenol makes low cost ethanol directly from CO2 and seawater using hybrid algae in sealed, clear plastic photobioreactors through its unique, patented Direct to Ethanol(®) technology -- all powered by the sun. Algenol's research and development efforts have culminated in a process that can produce ethanol at a rate of approximately 6,000 gallons per acre-year, compared to corn at 400. This process achieves an energy balance of more than 5 to 1 and a life cycle carbon footprint that is merely 20 percent of petroleum (an 80 percent reduction from petroleum). For more information about Algenol, please visit www.algenolbiofuels.com.
SOURCE Algenol Biofuels, Inc.