OriginOil Inc., which is developing technology to create fuel from algae, on Thursday announced a joint venture with an Australian partner to develop biorefineries that meet U.S. and NATO military requirements for alternative fuels.
The venture hopes to build biofuel refining centers in strategic locations around the world that would serve military customers, said OriginOil, which is working on standards for such fuels with the Department of Energy's Idaho National Laboratory.
The JV, called Future Energy Solutions Unlimited Inc., was created with Future Energy Solutions and its subsidiary, Alternate Energy Systems. AES has committed $3 million and FES $1.5 million in the venture, with funding set to be completed by the beginning of next year. OriginOil will contribute its proprietary systems and process knowledge.
"Our venture … is a game-changer for algae because these biorefineries will rely on algae to provide high energy values and a molecular structure that is virtually identical to petroleum," said OriginOil Chief Executive Riggs Eckelberry in a statement.
Shares were down 5 cents, or 2.4 percent, to $2.01 in midday trading on the Over-the-Counter Bulletin Board.