The acquisition of a algae production technology broadens Compass Biotechnologies’s green sustainable living solution, which includes but is not limited to, algae-based bio-mass, bio-oil, bio-plastic, carbon reduction and sequestration. Compass Biotechnologies’ commercial-scale facilities will focus on producing blue-green algae (spirulina, homatacoccus algae and nanochloropsis algae) to fulfill existing supplier contracts. Compass Biotechnologies plans to first address the requirements of premium markets such as nutraceutical and pharmaceutical and later focus on the bio-fuel market after a significant production capacity expansion.
Algae biomass is the raw algae. The raw dry algae, such as omeg-3, spirulina and asthaxanthin, is used for human, fish and animal consumption.
Dry algae, also known as algae cake, is a by-product of the algae process. Algae cake serves as a nutritious and easily digestible feed for livestock. It is also a valued source for aquaculture products.
Astaxanthin is a powerful antioxidant. It is a carotenoid that has numerous applications from joint pain relief to treatments for muscular degeneration. Astaxanthin is able to pass through theblood-brainn barrier which is critical for the prevention of muscular degeneration. The market opportunity is significant. The hindrance has been lack of additional supply to support new product lines. Most of the supply originates from open pond producers who face the challenges of growing a high-end product in an outdoor setting. The opportunity in the joint pain relief market alone is approximately $2 billion.
Increasingly being used as a nutritional supplement due to its claimed ability to prevent heart disease, cancer and the ability to boost the immune system. According to Euromonitor, omega-3 consumption grew by 10% during 2008-2009 to reach 13,218 tons (raw volume) in 2009. During the 2004-2009 period, consumption of raw omega-3 increased fifty-fold. The consumption is expected to grow at a compound annual growth rate of 24%, reaching 16,332 tons in 2014.
Algae oil is used in the production of bio-fuel. Algae fuel is a third generation biofuel produced from algae. Vegetable oil, biogasoline, bio-methanol, bio-diesel, bio-ethanol, bio-butanol, and other biofuels can be made from algae. Algae oil, when heated, reduces in viscosity. As a result, algae oil can be burned directly in a diesel engine or chemically processed to make other fuels such as bio-diesel.