Algae Biosciences Corporation (TSXV: ABV) has announced that it is engaging immediately in a $5-million, first-phase expansion of its production facilities near Holbrook, Ariz.
The expansion is expected to allow AlgaeBio to reach large-scale commercial production levels of omega-3 fatty acid oils, and high-protein algae meal, for the nutraceutical and food additive industries by the end of the calendar year.
"This is a major step forward for AlgaeBio," says Robert J. Thompson, AlgaeBio's Chairman. "At the moment, market demand for omega-3 fatty acid oils eclipses industry production capacity by a wide margin.
"With a quick and efficient first phase of plant expansion, we will soon be able to deliver AlgaeBio's ultra-pure products to waiting customers in the nutraceutical and food additive industries."
AlgaeBio's omega-3 fatty acid oils, produced from refined strains of marine algae via proprietary extraction methods, contain both EPA (eicosapentaenoic acid) and DHA (docosahexaenoic acid). The vast majority of competing products offer only DHA, and many are purity challenged.
The initial phase of expansion calls for the manufacture and incorporation of 1,500 of AlgaeBio's proprietary bioreactors, as well as harvesting and support equipment, which will be housed in a new addition to the facility.
This will allow AlgaeBio to produce a monthly total of 5,900 kilograms of whole algae powder—resulting in 1,060 kilograms of omega-3 fatty acid oil, 4,250 kilograms of high-protein algae meal, and 590 kilograms of whole algae powder—by late 2012. Those monthly figures will rise to 16,400 kilograms of whole algae powder, including 4,700 kilograms of omega-3 fatty acid oil and 12,000 kilograms of algae meal, by the end of 2013.
MMI Construction Services of Phoenix has won the contract to manage and execute this first phase of AlgaeBio's plant expansion, with an anticipated completion of Dec. 31, 2011.
"Industrial construction is our forte. We handle everything from water treatment plants to process piping for specialty liquids," says Jeremy Fuller, Business Development Manager with MMI Construction Services. "We're excited to get to work on this project."
ABOUT ALGAE BIOSCIENCES CORPORATION: AlgaeBio is a Canadian biotechnology company that researches, develops and manufactures ultra-pure products from micro and macro algae such as nutraceuticals, food additives and pharmaceuticals. With access to near-perfect algae growing conditions, exclusive aquaculture access to a pristine brine water supply, and advanced proprietary technology, AlgaeBio produces superior human and animal consumable products, as well as offering advanced algae-based products and technologies for distribution into the agribusiness, biofuel, and aquaculture markets. AlgaeBio owns and operates large-scale production facilities near Holbrook, Ariz., and is listed on the TSX Venture Exchange (TSX.V: ABV).