first wave farm in aus - not algae related, page-2

It was never primarily about energy?

From the 'about us' page on the AEB site...

"Algae.Tec was founded in 2007 with offices in Atlanta, Georgia and Perth, Western Australia. We have a highly experienced global team with over 200 years of technical, professional and business expertise in key energy and environmental industries and core competencies in algae production, biofuel technologies, energy markets, project commercialization and business management."

Elsewhere it mentions energy and biofuel, but not stock feed or health supplements or any experience or expertise in that industry.

On their ASX page their principle activities entry is:

"Renewable energy in the form of commercialisation of the McConchie-Stroud algae production and processing system."

(and that's now, after their recent announcement)


I don't care how you want to dress this up, the closed-system technology isn't a cost effective way of making cow feed. Cows can eat grass and stuff, grown in fields. It can not possibly be cheaper to grow algae in an intensive closed system than in a field. As a biproduct of energy production or some other venture, sure, it might be worth selling rather than dumping. A boutique human health product ...maybe, because that's a specialised, premium price industry, but the economics only work on a small scale. It's only a boutique market while supply is low, and supply is only low because demand is low. If I want to go to the supermarket and buy, say, tinned lamb tongue I will pay several times the price of, say, chicken or tinned fish. If I was to suddenly supply multiples of the current lamb tongue tonnage, I wouldn't be able to sell it at the current boutique price, I'd have to sell it at pet feed prices.

Health markets are probably difficult to tap into. The board has a background in energy, not health products. Where is the market? Who are the buyers? Where are the sales deals? In most ASX listed companies, these and other questions being left unanswered would prevent the rally we've seen. Microcaps like AEB really are interesting to watch!