Seambiotic, a Tel Aviv, Israel-based cleantech start-up developing and producing marine microalgae for the nutraceuticals and biofuel industries using flue gas from electric power plants, has announced that it has signed a License Agreement and a Joint Venture Agreement with affiliates of China Guodian Corporation, to establish a Chinese joint venture for the commercial cultivation of microalgae.
China Guodian is one of China’s largest power companies with over 100 power stations. The joint venture with Seambiotic will utilize Seambiotic’s innovative technology for the cultivation microalgae for use in the animal and fish foodstock and nutraceutical industries. The first commercial farm of 12 hectares is expected to cost $10 million, will be situated in Penglai, a city in Shandong Province, China.
The facility will utilize carbon dioxide emitted from the China Guodian's Penglai power station, and, according to Seambiotic, the facility will become operational during 2010. The joint venture agreements, with Yantai Hairong and Penglai Weiyuan, affiliates of China Guodian, contemplate additional farms to be established based upon a pre-agreed timetable.
“The joint venture with Yantai Hairong and Penglai Weiyuan is a major development for Seambiotic,” said Daniel Chinn, Seambiotic CEO. “Partnering with such significant companies validates our model of working with important power companies around the world, and we look forward to working with our Chinese partners in establishing the first farm and commercializing our product.”
Seambiotic was founded in 2003 in cooperation with the Israel Electric Corporation (IEC) to grow and process marine microalgae for the nutraceutical and biofuel industries while acting as a carbon capture technology. Seambiotic's research efforts are performed at a pilot plant at IEC’s power station near Ashkelon, Israel, where various species of marine microalgae have been successfully cultivated using the power station's CO2 emissions released directly from their smokestacks. The microalgae are in turn sold into the nutraceutical market or used as feedstock for animal or fish and biofuel.
Seambiotic says that it is currently in transition from the pilot plant stage to commercial scale algae cultivation and production.
Afcon E.B. Wind Energy Ltd., a subsidiary of Afcon Industries, is in talks to partner with Israel Electric Corporation (IEC) on a $70 million project for installing wind turbines in the Lower Galilee.
As part of the collaboration, IEC has already started the process of obtaining statutory permits for the wind turbine farm, according to a report in Globes.
The wind turbine farm will be set up in Ramat Sirin and the Gilboa mountain ridge, with an output estimated at 40-50 megawatts. The National Planning and Building Board approved the construction of wind turbines in this region in 2003. IEC had previously planned to construct the turbine farm on its own, but after its board refused to finance the project, because of its high cost, the plan was dropped.
Afcon Wind Energy General Manager Dr. Eli Ben Dov was formerly deputy manager of IEC's planning and development division.
Afcon has already reached agreements in principle with the kibbutzim in the area, including Ma'aleh Gilboa, Beit Zera, and Degania, on constructing wind turbines on their land. In the next few months it will apply to the Public Utilities Authority (Electricity) for a conditional license to set up the farm.
Afcon declined to comment on the report. IEC said in response, "The company is doing all in its power to assist the promotion of green energy, and helps private producers in every possible way. The company is a subcontractor to Afcon Wind Energy, and is contributing towards advancing these important projects. The company is prevented from divulging details of commercial agreements with its customers."
Afcon Industries, one of Israel's leading industrial enterprises, is controlled by Shlomo Shmeltzer and traded on the Tel Aviv Stock Exchange. Motorola owns 9% of the group.
Defense Ministry opposes wind turbines in the Golan Heights
In related news, Globes reports that the Defense Ministry is opposed to the contruction of additional wind turbines in the Golan Heights. If true, this would be a blow to Mei Golan Wind's plans to construct a $600m wind turbine project in the Golan in partnership with U.S.-based AES.
Ha'aretz reports that the solar panels, which will produce 300-350 kilowatts of electricity per hour, will be installed on the rooftops of the company's three buildings, located at the Rehovot Science Park. The panels are expected to provide the company headquarters' electricity needs, with any surplus sold to the Israel Electric Corporation (IEC).
Millenium Electric has installed panels producing about 17 megawatts per hour all over the world. In Israel, the company has supplied panels to the Trans-Israel Highway, the Defense Ministry and the Klil settlement in the western Galilee.
Israel's incentive plan aimed at encouraging the use of photovoltaic (PV) technology for private consumption came into effect on July 1st. According to the plan, all excess electricity produced by private households and industry using PV panels may be sold to the IEC at NIS 2.01 per kilowatt, compared to NIS 0.48 for electricity sold to consumers by the Electric Corporation. Applied Materials Israel was established in 1997, and employs about 1,000 people, most of whom work at its research and development facility in Rehovot.
"Globes" reports that AquAgro Fund has made its second investment, investing $3.75 million in Computerized Electricity Systems Ltd. (CES). AquAgro declined to disclose the company value for the investment, but market sources believe that it was more than $10 million, before money.
CES's technology aims to replace the household electricity box, enabling electric utilities to reduce the demand on the grid during peak hours in a uniform and equitable way for all customers, thus avoiding the need for initiated blackouts and brownouts of entire neighborhoods.
AquaAgro made its first investment in January, investing $4 million in Advanced Desalination Technologies Ltd. AquaAgro has also set up Aqua Lab, which will invest in early-stage cleantech start-ups.
CTO Lupu Wittner founded CES in 2002. Based in Netanya and managed by CEO Yaron Sheinman, CES has 15 employees in Israel, mostly R&D staff. A representative in the US handles business development.
In a lengthy interview with Engineering News, CTO Lupu Wittner says that the company plans to install its product in South Africa beginning in March, initially importing systems from Israel, with a long-term plan of creating a manufacturing facility in South Africa.
Homes that consume the highest amount of electricity are the targeted clients for the product, says Wittner.
"If two-million electricity customers with high consumption accept a 20% saving structure through this system, Eskom could potentially save to 4,000 MW."
What follows is a selection of recent stories and links related to the solar industry in Israel.
Arava planning $2.5 billion solar power station An international project management firm recently signed a memorandum of understanding for construction of a $2.5 billion solar power station in the Eilot Region in the Arava desert. The project, which is expected to develop over a five-year period, involves installation of photovoltaic (PV) panels that will eventually supply up to 500 megawatts of electricity. The agreement was signed by the Arava Power Company of Kibbutz Ketura located in the southern Arava.
Photovoltaic energy system integration company SolarPower Israel has raised $1.1 million at a company value of a few million dollars from Precede Technologies and Rosenram Development Ltd. The company plans to use the funding to expand its business in Israel and internationally.
SolarPower co-CEOs Avinoam Levy and Alon Tamari founded the company in 2003. The company anticipates rapid growth in Israel's photovoltaic energy market following an update to the Electricity Regulations to allow the government to buy electricity generated by solar energy systems installed at businesses, commercial enterprises, and private homes at nearly four times the rate of electricity generated by usual means.
Israel Electric Corporation (IEC) is seeking to participate in the tender for the construction and operation of the solar power plant to be built at Ashalim in the Negev. IEC wants to be a sub-contractor, providing planning, management, and construction services for one of the consortia that will participate in the tender. IEC has begun negotiations to this end with Solel Solar Systems Ltd..
Globes reports that Shai Agassi and Idan Ofer, the heads of electric car venture Project Better Place, met a group of Israel Electric Corporation (IEC) executives a few days ago to review the technical feasibility and costs of establishing a network of electric recharging stations for the cars.
Agassi and Ofer asked IEC for a proposal for the supply of electricity to the stations at a reduced group tariff. The price of electricity is a critical factor for calculating the costs and profitability projections for Project Better Place.
The parties discussed a range of technical issues relating to the deployment of the recharging stations, but no conclusions were made. Among other things, Agassi and Ofer asked for a study of locating recharging points at people's homes, where their cars could be recharged overnight. The parties also discussed when during the day car recharging should be carried out.
IEC said that if most recharging is made during the night, where there is surplus production capacity, the electricity rates would be lower. However, overnight recharging will require Project Better Place to reduce the number of vehicle rechargings in real time and speed up development of a battery replacement mechanism.
I am an associate in the Business Law Department of Goodwin Procter LLP, a leading U.S. law firm. The views expressed on this website are my own, and not necessarily the views of Goodwin Procter. You can contact me at jonathan@boston-israel.org
