The Venture Codex

Led · Grant · Sep 2012

Aurora Algae operates a photosynthetic, algae-based production platform using proprietary strains that leverage arid land, seawater and captured industrial CO2. The company has developed cost- and resource-efficient methods for growing, harvesting, extracting and producing algae-derived products. Its demonstration facility in Karratha, Western Australia consistently produces 12–15 metric tons of algal biomass per month from six 4,000 m2 ponds. Aurora highlights major environmental advantages: water use under one percent of comparable soy-based production and per-area yields of roughly 10× oil and 40× protein versus soy. Biomass is being positioned for nutraceuticals, pharmaceuticals, aquaculture and renewable energy/fuels markets. The company is headquartered in Hayward, California, and plans to expand to commercial scale, with a planned 2014 ground-breaking in Maitland for a 100-hectare facility capable of ~600 metric tons per month and scalable to 2,000 hectares. Aurora Algae develops biofuels and a range of biochemicals from cultivated algae. The company cultivates an omega-3–rich strain and converts processed algae into nutriceuticals, protein-rich biomass feedstock, and a petrochemical similar to palm oil used for various products. Aurora is currently running trial runs at a demonstration plant in Australia, which is expected to be complete later this year. The company plans to use its latest funding to start construction of its first facility to produce commercial-grade biochemicals. Aurora has raised $72 million to date. CEO Greg Bafalis says the company is prioritizing higher-value markets now and sees biofuels as a later focus. Aurora Biofuels manufactures fuel from genetically optimized algae in a patented production process. The company plans to use new capital to support commercialization of its advanced algae biofuel technology. The financing announced brings total capital raised to more than $40m. Aurora recently hired Scott McDonald as chief financial officer; he brings 25 years of executive management and corporate strategy experience. Management said the investment will be critical as the company expands its field operations and further optimizes its technology. The company is headquartered in Alameda, California. Aurora BioFuels is a Berkeley, Calif. company working on producing biofuel from algae. The company raised a $3.2 million first round, according to VentureWire. Investors named in the round include Noventi Sorgenia Ventures and Oak Investment Partners. The report presented this financing alongside other activity in the algae-for-biofuel space. VentureWire noted that Solazyme closed a "significant" new round and that Live Fuels was seeking about $10 million. The article did not disclose operating metrics, valuation, or specific use of proceeds.