Algae.Tec to make biofuel from CO2 emissions of 2.64-GW TPP

Jul 2, 2013 - Australian biofuels firm Algae.Tec Ltd (ASX:AEB) said Tuesday it had agreed to put in place an algae carbon capture and biofuels production unit at a 2.64-GW coal-fired power plant of state-run utility Macquarie Generation.

The Bayswater power station, situated near Sydney, will feed waste carbon dioxide (CO2) into the enclosed algae growth facility. The system will produce algal oil for conversion into biodiesel, which will then be hydrogenated to grade A jet fuel.

"Carbon is now our single largest cost. This technology should reduce our carbon output, reduce our carbon bill, and at the same time improve our bottom line," said Macquarie Generation chief executive Russell Skelton.

Roger Stroud, executive chairman of Algae.Tec, said that the deal marks the start of an era of “grown” renewable fuel in New South Wales and that it coincides with the reduction in petroleum refining capacity in the state.

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