Algae Tec receives $12.15m from Australian government

Australia-based renewable oil from algae company Algae Tec has received approval from its government for an AU$12.15 million (€9.6 million) cash refund on Australian and overseas development expenditure.

The terms of the payment, covering financial years 30 June 2012 to 30 June 2015, allows for an initial $27 million spend on Algae Tec technology developments, of which the government will reimburse 45% or $12.15 million.

The approval is to support the funding of at least three algae bioreactor facilities in Australia, Asia and the US.

Algae.Tec MD Peter Hatfull says the company had applied for the approval last year as part of a range of financing options available for future growth plans.

‘It was a rigorous process involving a complete review of our technology and global expansion plans,’ he adds. ‘We see this as an endorsement of our technology and strategic direction, and we are pleased to have the support of our government.’