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Melbourne, FL-based PetroAlgae has filed an S-1 document with the Securities and Exchange Commission in the hopes of raising $200 million from an initial public offering. Unfortunately, despite the promise that algae shows as a feedstock for biofuels, PetroAlgae doesn't appear to have much to offer.

Evidently, PetroAlgae has spent nearly $60 million to develop a process for speeding up the growth of algae that can be used as animal feed or for biofuel production. So far, PetroAlgae has a research facility in Florida but doesn't plan on actually producing algae for commercial use. Instead, the company wants to license its technology and has agreements with five other companies that will pay royalties to PetroAlgae only if its process is used.

So far, PetroAlgae has no revenues and no near-term prospects for profitability unless oil prices rise dramatically. It appears that investor Laurus Capital Management LLC wants to cash out while still allowing the company to have cash to fund operations for a while. Will it work? We'll see.

[Source: Florida Today]


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    • 1 Second Ago
  • 6 Comments
      • 6 Months Ago
      Im not interrested to buy stocks from them. Algae growing is cheap, it don't take a million to start a business out of it. 10 000$ to 20 000$ is all it take to begin selling algae fuels. Im more interrested to buy from them or anyone else a gallon of ethanol or a gallon of butanol for my neon 2005 to verify for myself the quality of the stuff. Do they ship with u.p.s ?
      • 6 Months Ago
      What the hell did they spend $60 million on?
      • 6 Months Ago
      Dig deeper, Sam. PetroAlgae's play, despite its name, isn't about algae.

      Take a look at the table on page 70 of the S-1.
        • 6 Months Ago
        I did look at that table (do you not know how to copy and paste, or are you lazy?) , and Sam is right, PetroAlgae doesn't have a product.

        "We have been a leader in developing photosynthetic harvested micro-crops and believe that our micro-crop solution will result in the commercial scale, economically-viable production of “drop-in” fuel products to replace fossil fuels and high quality digestible protein products for animal and eventually human use. "

        It's good they think they're a leader and believe in what they're doing, but that seems a poor substitute for demonstrating that putting indigenous micro-crops in multiple layers in bio-reactors will actually produce commercial-scale amounts of "resid" fuel or
        protein food (yum!) economically. They acknowledge on page 3 there are other approaches:
        "* photosynthetic harvested – the PetroAlgae approach,
        * non-photosynthetic harvested, and
        * direct secretion"
        so investing in them seems like covering the bases in case their approach works out. I hope it does.

        Their technique sounds like marijuana growers controlling the light and nutrients reaching their beloved plants ;-) Also, I like how on page 1 they've blanked out the number of licenses they've signed and the amount of money from these.
        • 6 Months Ago
        @skierpage - I'm not big on copy and pasting. Nor do I take joy in insult.

        Here's another link that might shed some additional light ...

        http://biofuelsdigest.com/bdigest/2010/08/12/petroalgae-files-for-200m-ipo-goldman-ubs-citi-piper-underwriting/
      • 6 Months Ago
      It does seem that gasoline prices are sinking (and the economy tanking) just as all these alternative fuels / propulsion vehicles are finally reaching the market.

      Timing is everything.