Perth-based Australian biofuel technology company Algae.Tec Limited has signed a collaboration agreement for the construction of a large-scale algae to aviation biofuels production facility with German airline conglomerate Lufthansa.
The site will be inEuropeadjacent to an industrial CO2 source.
Lufthansa will arrange 100% funding for the project. Algae.Tec will receive licence fees and profits from the project, which will be managed by Algae.Tec.
As part of the Agreement, Lufthansa has committed to a long-term purchase agreement of at least 50% of the crude oil produced at an agreed price.
The agreement forms the base for a long-term cooperation between Algae.Tec and Lufthansa for the industrial production of crude algae suitable for conversion into aviation kerosene and conventional diesel fuels.
According to the agreement, the parties will jointly develop a large-scale industrial algae oil production plant based on Algae.Tec