PetroSun updated investors this morning concerning its algae-to-biofuels division. The company’s wholly owned subsidiary, PetroSun BioFuels, has been focused on pursuing feedstock supply agreements to market algal oil from its planned algae farms and algal oil extraction plants.
The company anticipates that a minimum of 180 million gallons will be produced annually from the planned facilities in Alabama, Louisiana and Arizona. Using the crude oil price of $80 a barrel, the algal oil produced would wholesale for $1.90 per gallon or 25 cents a pound. This viable example would generate $342 million in annual gross revenues.
The Company will also have the ability to produce considerable amounts of algae biomass, which could be marketed as livestock feed or processed into ethanol. PetroSun BioFuels estimated that the annual sales from biomass derived products could double the annual income of its initial algae-to-biofuels operations.
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