Investment in algae-based biofuels boosts Matrix Genetics

Biotechnology business Matrix Genetics (MG) will pursue developing biofuels-from-algae after receiving investment from Avista Corp.

The value of the investment has not been disclosed but MG CEO Margaret McCormick says it will allow the Seattle-based biotech company to spin out from agricultural biotech firm Targeted Growth, which owns the majority of MG, and continue research far into 2013.

‘It gives us plenty of time to develop our story and collaborations in place to raise a large amount of financing in probably the next 12 to 18 months,’ she adds.

Chief strategy officer at Avista, Roger Woodworth, believes the venture-capital arm of his energy company financed MG because it had ‘an established list of patents and a reputable research team developing new strains of blue-green algae for use as a substitute to fossil fuels and petrochemicals’.

‘As much of a longshot as many think it is, there is some merit,’ he adds.

MG hopes to bring in 10 more employees with part of the funds.