Algae.Technology company Algae.Tec Ltd’s (ASX:AEB) shares have surged after signing an exclusive supply agreement with Gencor, a worldwide supplier of health supplements.
Algae.Tec is a specialist algae producer, focused on developing technology that captures waste carbon dioxide to produce commercial quantities of algae for use in the food and fuel sectors.
The supply agreement gives Gencor the exclusive rights to buy all of the algae oil and powders produced by the Algae.Tec plant in Georgia, U.S.A. for nutraceutical applications.
Algae.Tec’s plant is designed to initially produce 50 tonnes per year of high value algae for the nutraceutical market.
The company is planning to increase the production capacity to 1,000 tonnes per year to achieve a revenue of over $50 million per year.
Last month, Algae.Tec received a US$1.138 million order from the Reliance Group in India for the supply of technology and equipment for a pilot algae plant being built in Jamnagar, India.
The current global market for algae-based nutraceutical products is substantial, exceeding 21,000 metric tonnes, representing a $1.3 billion per year market.
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