Cameron Edwards, Verdara Energy Group

The algae biofuel industry is still fairly young and relies a lot on outside investments. This capital comes from many places including investment companies. Verdara Energy Group is one such company based out of Switzerland that is investing in the algae industry. Cameron Edwards is on their team and answered a few questions about how the investment process works.

1) Can you briefly explain how your investment process works?

Either myself or one of my colleagues identify opportunities which fit our investment criteria. We review the opportunity in depth and if suitable it is discussed in-depth internally and if appropriate a due diligence exercise will be completed and then potentially an investment made. This process can take months or years.

2) Out of all the alternative fuels being developed, why has Verdara Energy focused on algae?

Verdara focuses on all types of resources and commodities. We have a focus on algae because we believe in its potential as a solution to many issues (carbon, proteins, animal and fish foods, pharma, bioplastics etc)…fuel is actually seen by us as a low value by product. It is a growth area for the future.

3) How many algae companies have you worked with?

I have been involved with at least 10 in different ways but have a concentration on 1 at the moment.

4) Is investing in the algae industry different from investing in other energy sectors?

Yes. It is still in the development with many promises being made and the vast majority will be disappointed. It is frustrating that many companies, particularly in the US, make unbelievable and incredible promises that damage the entire industry in the same way as biofuels a few years ago. Unfortunately I do not see this approach changing anytime soon. It is still not economically viable and the whole market needs to be developed. The demand spectrum is more complicated because algae has so many different possibilities, it is almost the opposite of other energy sources.

5) What advice would you give others looking to invest in algae fuels?

You have to believe in what is possible. I do not see this as a get rich quick option but a long term sector development where value is built over time. It is a very difficult sector to break into successfully because of the large volume of knowledge that has to be acquired, and this takes a lot of time. New entrants only see the problems after a couple of years. Have patience. I think it is important to focus on the energy balance of the entire energy process rather than conveniently excluding key energy processes like harvesting, drying, light etc. It has to be scalable and quality control on a large scale is critical.

6) Lastly, I see that Verdara Energy is a member of the European Algae Biomass Association. Can you briefly explain why you decided to become a member and how you have been involved?

I was an original founder of the EABA and am on the Commercialisation Steering Committee. I believe in its potential and how it can be developed.

Cameron Edwards
Verdara Energy Group
http://www.verdaraenergy.com