Norway-based energy giant Statoil ASA (NYSE:STO) and Bio Architecture Lab (“BAL”) announced today that they have entered into a partnership to produce low cost ethanol using seaweed grown from the coast of Norway.
Under the partnership agreement, Statoil will fund BAL's research and development and demonstration projects, and if successful, will also fund the commercialization of BAL's technology in Norway and elsewhere in Europe. BAL will have the right to equity participation and will receive royalties on all ethanol and by-products produced by the partnership.
Within the partnership, BAL is responsible for developing the technology and process to convert Norwegian seaweed into ethanol. Statoil is responsible for developing and managing the seaweed aquafarming operations. After the completion of key milestones, Statoil and BAL will develop a demonstration scale facility in Norway with the aim of commercialization in Norway and other parts of Europe.
Bio Architecture Lab is a privately-held company headquartered in Berkeley, California, that is focused on developing the technology that enables the production of ethanol from seaweed.
BAL has partnered with DuPont (NYSE: DD) in a project funded by the Advanced Research Program Agency – Energy to convert seaweed into isobutanol.
Investors of the company include Austral Capital, X/Seed Capital and Energy Capital Management.