Governors' Biofuels Coalition

Florida-based algae technology company Algenol today said it has secured its first commercial contract for its algae-derived ethanol.

Under the deal, Protec Fuel Management LLC and Algenol Biotech LLC will sell ethanol made from Algenol’s demonstration plant. The two firms will later sell 18 million gallons of ethanol a year from Algenol’s future commercial-scale production facility planned for 2016 and 2017.

The algae-derived ethanol will be sold in both E15 — gasoline blended with 15 percent ethanol — and E85 blends made for flex-fuel vehicles.

“This alliance is a logical step for Algenol as our commercial fuels are coming on-line,” Algenol CEO Paul Woods said in a statement. “We are excited about partnering with a successful, innovative renewable fuels distributor, who is knowledgeable in the regional and Florida ethanol market and has the expertise and relationships to grow the partnership nationally.”

Algenol has developed technology to make ethanol and other renewable fuels by pumping carbon dioxide into hanging bags filled with blue-green algae. Protec operates gas stations in the Southeast and has been a promoter of adding more ethanol to the nation’s fuel system.

The partnership between the two firms will focus on Florida at first, but the company said the agreement leaves open the option of expanding sales of Algenol’s fuels across broader markets.

U.S. EPA has already approved Algenol’s ethanol for credit under the federal renewable fuel standard program. Algenol says it can produce its ethanol for about $1.30 a gallon.

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