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AlgaEnergy and Yokogawa sign strategic partnership and equity agreement to accelerate growth of the microalgae biotech sector

06 11月, 2018

The entry of Yokogawa as a shareholder will enable AlgaEnergy to reinforce its position of international leadership.

 

 

 

Foto 2. Foto detalle Fotobiorreactor_LR

AlgaEnergy, a Spanish biotechnology company specializing in the production and commercial applications of microalgae, and Yokogawa Electric Corporation, a leading provider of industrial automation, control, and measurement technology, announce the signing of a partnership & equity participation agreement. The strategic agreement involves an approximately 10 million euro investment by Yokogawa to acquire newly issued shares of AlgaEnergy, making the Japanese company a reference shareholder.

Microalgae are a diverse group of unicellular photosynthetic micro-organisms that can thrive in a wide variety of aquatic habitats, such as oceans, lakes, and rivers. Their rapid rate of reproduction means they can be utilized effectively as a biological resource. They are recognized as having great potential to contribute to a more sustainable society through applications in diverse sectors ranging from agriculture, food, and animal feed through to pharmaceuticals, cosmetics, biomaterials and, in the future, sustainable biofuels.

AlgaEnergy has been a pioneer in the microalgae biotechnology field since 2007. It is currently operating a commercial production facility in the south of Spain.  In late 2015, the company launched the world’s first line-up of microalgae-based biostimulant* products to promote efficient crop cultivation.

The entry of Yokogawa as a shareholder will enable AlgaEnergy to reinforce its position of international leadership, with the equity investment being used to fund a set of ambitious projects, including international expansion of its biostimulant product sales organization, entry into new sectors such as food and cosmetics, and development of its promising product pipeline.

However, the scope of the agreement extends beyond just financial investment. The two companies, which share strong synergies and a common vision, seek to build an industry-leading partnership in the microalgae biotechnology sector worldwide by collaborating in the areas of R&D, manufacturing, marketing, and sales. AlgaEnergy will leverage its broad knowledge and experience in the microalgae biological processes, accumulated throughout more than four decades of R&D by its scientific leader, the world-renowned microbiologist Professor Miguel Garcia Guerrero of the University of Seville. Yokogawa will provide the advanced technologies and knowhow related to automation of industrial processes that will be key for maximizing quality and efficiency as production volumes increase.

United by a commitment to sustainability

Augusto Rodríguez-Villa, AlgaEnergy’s president, highlighted that, “This agreement is the best possible partnership in the journey to achieve our mission to leverage the potential of microalgae worldwide. We share the same vision for the future, the belief that more sustainable development is possible and that microalgae can be a key contributor towards that objective.”

Tsuyoshi Abe, senior vice president and head of the Marketing Headquarters at Yokogawa, added, “Yokogawa aims to contribute directly to the UN’s Sustainable Development Goals through its core business activities, and this year we established a new Life Innovation business unit in line with that. This is our first serious foray into clean technology in the bioeconomy, which was recently added as a new focus area in our long-term business framework, so we have high expectations for this exciting strategic partnership.”

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