In September 2006, XL TechGroup established its fourth portfolio company - PetroAlgae LLC.

PetroAlgae is commercialising a proprietary, environmentally-friendly algae that generates over two hundred times more oil per acre than traditional biofuel crops like soybeans.

Using a cost-effective, modular cultivation process that can be massively scaled, PetroAlgae will produce renewable feed stock oils for use in applications such as transportation fuels (e.g. biodiesel), heating oil, and plastics. This development places PetroAlgae in a leading position to address an ever-increasing multi-hundred billion dollar global market need for sustainable, affordable sources of petroleum derived products.

The algae can be grown in many areas, including those regarded as wasteland. It matures within 24 hours, permitting daily harvesting, and 50% of its weight is usable oil. To harvest, the oil is simply pressed from the algae. The energy density is such that, if just 2% of the cultivated land in the US was used to grow this alga, it would produce 60 billion gallons of oil - enough for the entire annual US demand for diesel fuel.

Furthermore, greenhouse gases are absorbed by the algae during photosynthesis, offsetting emissions caused by the burning of the derived oil. The algae also act as a filter in natural water systems, helping to prevent the accumulation of heavy metals or other harmful substances in water supplies.

PetroAlgae's business development plan addresses multiple markets, with the initial thrust aimed at global commodity markets such as biodiesel, large-scale fatty acids and bioplastics. Target market sizes are significant with, for example, US$150 billion spent annually in the US on transportation diesel and home heating fuel. Petroleum used in the manufacture of plastics in the US amounts to an additional market of US$15 billion per year. A second, more disruptive part of the business development plan is aimed at smaller, but still significant and potentially higher margin areas where there is strong demand for more specialised, high performance oils in applications such as medicines, cosmetics and food products.

XL TechGroup is already in discussions with a number of global multinational strategic partners and potential end users.

The PetroAlgae Business Overview - February 2007 presentation is available to view and download in PDF format.

A new website for PetroAlgae is under development