Solix Biofuels, based in Fort Collins, Colorado, which is developing algae-based intermediates for fuel and chemical production, has raised $10.5 million in its first round of outside funding. It also reached an agreement with investors for an additional commitment of $5 million, to be used to build an algae biofuel facility near Durango, Colorado.
The first-of-its-kind project will showcase Solix’s ability to produce biofuel and feedstocks for the chemicals industry at commercially-feasible production levels and costs.
The funding will support Solix’s development of its fourth-generation technology, including a proprietary closed photo-bioreactor system, which produces biocrude from algae cost-effectively.
I2BF Venture Capital, which is focused on biofuels (based in London), led the round, along with Bohemian Investments, a private investment firm based in Fort Collins. Round participants include Southern Ute Alternative Energy LLC, an Ignacio, Colo.-based company that manages alternative energy investments for the Southern Ute Indian Tribe; Valero Energy Corp., the largest U.S. oil refinery operator, and Infield Capital, an investment fund focused on emerging "clean tech" companies.
The $5 million follow-on commitment from the investor group will provide construction financing for the pilot plant, which will be developed jointly by Solix Biofuels and Southern Ute Alternative Energy LLC.
The biofuel plant will be located on a ten-acre site on the Southern Ute Indian Reservation in Southwest Colorado. It will be built in two phases, with the first to be completed in 12-18 months and consisting of four acres of photo-bioreactors for growing algae, and one acre for a lab facility. Upon completion of the first phase, Solix will build an additional five-acre expansion that will allow the pilot facility to produce at commercial scale.
"We believe algae has great promise as a source of efficient, cost-effective commercial-scale biofuels production, but not all algae companies are created equal," said Rebecca Kauffman, President and COO of Southern Ute Alternative Energy LLC. "We were impressed with the engineering and systems approach taken by Solix and look forward to working with their talented team to help bring these technologies to the marketplace."
Currently, algae grown in photo-bioreactors at Solix headquarters yield more than five times the amount of fuel per acre of land per year than agriculture-based fuels including ethanol from corn and biodiesel from soy and canola, at their current commercial yields. Solix engineers have created systems that automatically adjust for environmental changes such as sunlight and temperature to optimize growing conditions.
Algae cultivation consumes substantial quantities of carbon dioxide, potentially helping to reduce emissions of greenhouse gases believed to contribute to global climate change. The Solix system has the ability to capture emissions directly from power plants and factories.
Solix Biofuels is a spin-off and technology partner of Colorado State University in Fort Collins, Colo. Solix seed funds were used to sponsor research by CSU faculty and graduate students to identify algae species with the best potential to grow at large scale and produce high yields of fuel and chemical feedstocks, and to develop technology that can bring the process to commercial scale.
CSU is a national leader in addressing the global challenges related to sustainability, and the university recently launched its School of Global Environmental Sustainability to lead the next generation of research and intellectual capital, benefitting the economic prosperity of Colorado and the nation. Dr. Bryan Willson, professor of mechanical engineering at CSU, serves as chief technology officer for Solix Biofuels and is a co-founder of the company and a former member of its board of directors. Willson also serves as director of the Clean Energy Supercluster, which aims to speed the development of technological innovation — such as the algae-to-oil photo-bioreactor — to the commercial marketplace.
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