[Lexington, KENTUCKY] - Alltech, a global leader in natural animal nutrition, based in Nicholasville, Kentucky, announced today that it has acquired a state-of-the-art algae fermentation facility in Winchester, Kentucky from Martek Bioscience Corporation for approximately $14 million.
"For Alltech, algae fermentation presents our latest technological platform from which we expect incredible opportunities in the areas of food, feed and fuel to arise." said founder and president of Alltech, Dr Pearse Lyons. "We have worked in this area for several years and see it playing a major role in both human and animal health and nutrition as one of the world's more renewable food and energy sources. As with virtually all facilities we acquire, we expect to start an expansion phase here in Winchester within the next 18 months. I am confident that this will be one of the key pieces that will help our company pass the $1 billion revenue threshold in 2015," Lyons continued.
The purchase price will be paid over four years and will include the majority of the assets on the 23 acre site. The site will be renamed Alltech Winchester and will represent a further increase of over 1 million liters of fermentation capacity for the company and become its 5th primary production site in North America and 10th globally. Alltech also has 24 further production sites, which tailor its products for its 120 local markets.
Algae are some of the fastest growing plants in nature and have the ability to convert large amounts of carbon dioxide into oxygen, a characteristic that makes it particularly interesting in today's more environmentally conscious world.
"Alltech is actively developing processes that are derived from a variety of different algae types," said Becky Timmons, Alltech's Director of Applications and Quality Assurance. "Algae are one of the most diverse organisms in the world and their potential for product development is tremendously exciting for us. Alltech currently has the largest carbon dioxide sequestering algae pilot plant system in the state of Kentucky and this new acquisition will allow us to move our research yet further towards true implementation." she continued.
The facility will allow for continued work with Alltech's carbon dioxide sequestering algae strains as well as strains that are grown with other carbon sources. The algae will then be used for value-added feed products, algae derived bio-fuel, and the production of ethanol.
The laboratory and pilot plant fermentation facilities in the acquisition are of particular interest as they will allow for quick product and process development. The automated control and monitoring systems on the fermenters will allow Alltech to make advances in new and current fermentation processes. One of the main focuses of the facility will be the development of products derived from algae.
Autotrophic algae require CO2, water, nutrients and sunlight during biomass growth. Each 100 tons of algal biomass fixes about 183 tons of CO2. Heterotrophic algae, which cannot use photosynthesis to generate its own food, can be grown in large closed tank systems present in the Winchester facility.
Algae biomass is mainly composed of lipids, proteins and starches. The composition is dependent on the strain as well as growth conditions and can vary greatly. Fat content can range from 2% to as high as 84%. Protein content can range from 5%-70% and starch from 5%-50%.
Alltech's interest in algae began with the start of its rural Biorefinery project for which it received federal and state funding. This project will be featured at the Future of Farming section in the Alltech Experience Pavilion at the Alltech FEI World Equestrian Games 2010(TM), as part of a sustainable agricultural community model.
This announcement of the purchase comes one day before the start of the Alltech FEI World Equestrian Games 2010(TM), which will be held in Lexington, Kentucky from September 25 to October 10, 2010. Alltech is the proud title sponsor of the Alltech FEI World Equestrian Games, the largest sporting event to take place in the United States in 2010, featuring 800 athletes and 900 horses representing 58 countries.
Visit the official site of the Alltech FEI World Equestrian Games at www.alltechfeigames.com or call 1-888-934-2010 for complete information about the event or to purchase tickets.
Founded in 1980, Alltech is a leader in animal health and nutrition. With more than 2300 employees in 120 countries, the company has developed a strong regional presence in Europe, North America, Latin America, the Middle-East, Africa and Asia. The company is privately held and revenues will surpass $500 million in 2010. Alltech's core competence lies in researching, developing and marketing natural products that are scientifically proven to enhance animal health and performance. The company is the largest producer of protected organic minerals in the world and primary in yeast, algae, and solid state fermentation systems. For further information, visit www.alltech.com.