Ann: Algae.Tec Announces Biofuels Refinery Deal , page-25

re: Ann: Algae.Tec Announces Biofuels Refiner... Sdaji, I quite enjoy the contrarian viewpoint you put forward, however one thing I struggle to get my head around is your flat out opposition of belief in the concept.

I believe that algal fuel is being produced and used around the world, along with a number of other bio fuels. (Ok tick, the broad level concept can work)
Is it competitive to the pricing of oil? Not that I am aware of. Why cant the majority of bio fuel compete with oil? My understanding is (refining costs aside) the majority of it relates to either, bio fuel feed stocks being competitive food sources, areas required to grow enough bio fuel stocks are huge and efficient harvest quantity (please people, especially Sdaji, chime in with other reasons).

Now whilst we have a new process for growing algae for fuel (something that is done across the world), we aren't really re-inventing the wheel are we? All AEB has done is come up with a proprietary method of growing this algae using a much smaller physical footprint. In addition given the module approach they are providing for scaling and locational benefits (ie placing a site right next to a power supplier, who can supply the feed stock free).

On the carbon tax issue:
Whilst the ETS being brought forward reduces the MacGen cost immediately, it doesn't alleviate their problem. There will still be a tax component. Also the modelling for ETS suggests the immediate effect will be significant, however the long term effect will be higher prices, as the market price of carbon increases.

As far as I understand the deal with MacGen has been in the pipe for a number of years and is not at all reliant on their being a price on Carbon. I don't believe that MacGen are funding the plant (bonds will do that), their role is to provide the carbon. Which they will do no matter what, given the reputational benefits and potential pricing drivers for greener energy. (A number of the government tenanted buildings are paying significant sums for 'green energy' to improve their accommodations green ratings).

Any way apologies for the verbal spu. At work an don't have any time to check and cut it down.