Pond Technologies Expects Animal Feed Pilot Plant To Be Online By Year End

Pond Technologies (TSXV: POND) appears to be getting underway with its partnership related to the production of algae-based animal feed ingredients. The firm this morning provided an update related to an arrangement signed back in September with that of Livalta, whom is a subsidiary of Associated British Foods.

The aim of the partnership entered between the two firms is the production of animal feed ingredients from carbon dioxide emissions, which is to be produced on a commercial scale from algae. The company simplifies the process by stating, “the technology is designed to take CO2 emissions out of the air to produce high value protein.”

The partnership reportedly consists of two separate pieces. The first piece will see AB Agri acquire an algae demonstration system from Pond. The system is to be purchased for a total figure of $2.9 million. As part of this purchase, Pond will enter a licensing agreement with the company, where it is to receive funds to the tune of $2.6 million for “technology access fees,” as well as an associated royalty on future plants established by the partnership.

Once the system is acquired and operational, algae is to be grown for animal feed trials and further development of feed products, which is to be sold by AB Agri upon successful completion. Currently, the pilot plant is expected to come online in the fourth quarter of this year.

“We are pleased with the progress made to date with our partner Livalta/AB Agri on this milestone filled project, despite the supply chain disruptions seen around the globe. This is the world’s first scalable algae plant utilizing carbon emissions for the production of protein used in animal feeds,” commented Pond Technologies CEO Grant Smith.

To date, of the funds outlined, $1.5 million has been received by Pond, with initial engineering work said to be completed. $4.0 million is yet to come from licensing and engineering payments related to the project, as well as procurement and construction payments.

The development follows a recent initiative announced by the company to identify an algae strain that could potentially dramatically reduce methane production, and thereby carbon emissions, by cattle.

Pond Technologies last traded at $0.23 on the TSX Venture.


FULL DISCLOSURE: Pond Technologies is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Pond Technologies on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.

Video Articles

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

What Happens If Silver Finally Breaks $50? | Gary Thompson – Silver47

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

A Profitable Solution To The Emissions Problem? — With Grant Smith

Returning to The Daily Dive today is Grant Smith, CEO of Pond Technologies (TSXV: POND)....

Monday, November 14, 2022, 01:30:00 PM

Pond Technologies Appoints Dan O’Connor As COO, Releases Q2 Results

Pond Technologies (TSXV: POND) yesterday announced that it has added bench strength to its management...

Friday, August 19, 2022, 10:24:00 AM

Pond Technologies Sees Success In Production Of Proteins From Algae Under Partnership

Pond technologies (CSE: POND) continues to see success within its biotech division. The company this...

Tuesday, May 10, 2022, 08:42:36 AM

Pond Technologies To Raise $1.0 Million At Premium To Market

Pond Technologies (TSXV: POND) this morning indicated it is looking to complete a small financing...

Tuesday, September 6, 2022, 02:47:00 PM

Pond Tech: Converting CO2 Into Algae – The Daily Dive

Joining us for the first time on the Daily Dive today is Grant Smith, CEO...

Thursday, March 31, 2022, 01:30:00 PM