Algae.Tec Teams With Reliance to Build Clean-Fuel Plant in India

Jan 21, 2014 5:49 am ET

Jan. 21 (Bloomberg) -- Algae.Tec Ltd., an Australian producer of algal oils used in cleaner fuels, is teaming up with a unit of Reliance Industries Ltd. to build a pilot production facility in India.

Reliance Industrial Investments and Holdings Ltd. will invest A$1.5 million ($1.3 million) in Algae.Tec and A$1.2 million more over the next two years, Perth-based Algae.Tec said in a statement.

The companies will develop a pilot project in India that will produce two barrels of biofuel a day and be funded by Reliance affiliates, Algae.Tec said. Reliance plans to work with its new partner to help bring the technology to market.

Governments are promoting cleaner fuels to curb polluting emissions from transport. Algae.Tec’s algal oils can be used to make biofuel for vehicles and jets. India is aiming for 20 percent of its fuel to come from clean sources by 2017.

--Editors: Randall Hackley, Tony Barrett