Origin Oil inks a commercial agreement
Ian Gilson, CFA
Algae producer Aquaviridis and Origin Oil (OOIL) have signed a commercial agreement to co-develop a algae production system in Mexico, south of Mexicali, Mexico, about 20 miles south of the US border, in Ejido Nuevo Leon, Baja California. In this region there are a number of geothermal water sources as well as normal aquifers. Carbon dioxide is also available as well as lots of hot sunny days.
Aquaviridis intends to produce high value animal feed supplements at low cost (Cyanotech Corp., CYAN, has a similar business model) from proprietary strains of algae that are tailored to local growing conditions. The company intends to scale up to a ten acre algae pilot production facility by mid 2012 with a commercial scale facility by the second quarter of 2013.
We would assume that license fees would accrue to Origin Oil during the scale up period.
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