Algae off-take agreement gathers pace

Neste Oil and Renewable Algae Energy (RAE), a US-based algae biomass producer, have signed a commercial algae oil off-take agreement.

Traffic fuels refiner and marketer, Neste Oil, is researching algae oil as one of the alternative feedstocks for producing NEXBTL renewable diesel.

Implementation of the agreement will require RAE to increase its algae oil production capacity and to comply with the requirements of biofuel legislation, which has strict criteria governing both the US and EU production chains.

RAE expects to be able to produce commercial-scale volumes of algae oil from 2016 onwards.

The agreement between the two companies is non-exclusive and Neste Oil is actively searching for other partners that are looking to start commercial algae oil production.