Brad Barilson, President & CEO of Photon8

Q: What role will private investors play in influencing the future of algae industry?

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Q: How important is the role of private investors to algae startups if no public grants or funds are awarded? Why?

A: Private investors are playing a large role in algae’s future. Whereas the government’s role should be ‘first-in’ investment where the risk is deemed to high, the technology too-early for private investment, they are instead playing a follower role-investing in just a few algae companies that have already received large private funding. We believe that instead of concentrating all this investment in just a few companies, this early stage of the industry should have seen the government support across a large number of startups. This would have enabled many ideas to have been played-out compared to the prototype level. Government grant monies have also been setup for competition with ethanol which has a large lobbying effort. And the grants are given out in large dollar amounts to just a few recipients, making the odds very low for an algae startup.

A number of the algae companies who were in this early found it easy to capture large private funding, and then the government money. Their performance issues and their recent change of market focus is cause for investor concern, furthering the struggle for new algae ventures with new ideas. That said, private investment is the only likely pathway forward for new algae ventures, new ideas.

Amidst these difficulties Photon8 continues to grow in interest across the spectrum of interests in the algae community. Our focus on profitability-driven solutions, and a creative and largely scientific team has resulted in inventions which overcome the obstacles to success in algae-biofuels. Our PFR photobioreactor system with ‘traveling wave’ technology grows algae at extraordinary rates and at a cost less than an open pond. We have genetically-advanced alga that produces lipids at 200% that of its wild-type. Aqueous Extraction is our solution to avert profit-killing dewatering. This process has enabled a dual-path process making ‘drop-in’ fuel components. We believe we are unique in being able to deliver fuel solutions a detailed, projected cost of <$1.25/gallon and at a fully-loaded capex of <$10/m2. The responses we've had indicate our solutions and performance are truly exciting.

Brad Bartilson
President & CEO
Photon8
http://www.Photon8.com