Using Algae in the Fight Against Climate Change?

Picture credit: Jasmin Sessler on Unsplash

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While people may want to buy electric vehicles (EVs) like those manufactured by Tesla Inc. TSLA, the truth is most will still be filling up their tanks with fossil-fuel-derived gasoline well into the future. In addition, the electricity powering those EVs will still largely be produced from fossil fuels such as natural gas, oil, and coal, the three resources still making up more than half of the source for electricity globally in 2020.

So, what to do with all those carbon emissions? Numerous technologies exist to capture carbon, but one Canadian company is focused uniquely on apparently humble algae to reduce companies’ footprints and make itself profitable at the same time.

Ontario-based Pond Technologies Holdings Inc. POND wants to close the carbon loop by offering emitters its patented algae-producing technology on site. The companies don’t have to worry about mitigating their own emissions; instead, they install the Pond Carbon technology at their locations, and the resulting algae go to work in the enclosed bioreactors.

The Pond Carbon-provided reactors take the carbon emissions and, through the process, produce algae that gobbles up a good portion of that carbon. That same algae can then be used as a sustainable food for animals and even in human food production. Other potential uses also exist for the algae, including in biotechnology.

Closing The Loop?

Pond is not alone in providing emission-reducing technology. Its own investor presentation lists several competitors in the emissions reduction sector, although some of those focus on reducing different types of emissions.

But the company is unusual in that its algae production technology is inside an enclosed bioreactor, and not in an outdoor pond. This approach reduces the risk of contamination, avoids the need to be reliant on climate conditions, uses less land, and reduces the amount of water needed, Pond reports.

By using the company’s technology, its client companies could then market themselves as sustainability leaders, all the while allowing Pond to make money from the resultant algae being produced and closing the carbon loop. And the market is nearly unlimited, Pond says, with all companies creating emissions potentially benefiting from the technology, even big emitters in the oil industry such as Royal Dutch Shell Plc RDS and Exxon Mobil Corp. XOM.

President & CEO at Pond, Grant Smith, said: “Pond has built robust, scalable growth technology with 26 active patents globally and is leveraging these through ongoing discussions internationally. We are in the early stages of commercialization and see an enormous number of opportunities to leverage the vertically integrated platform we have developed, which will allow us to build a solid and diversified revenue base. Currently, we are in advanced licensing discussions with multinational companies in the animal feed, food production, nutraceuticals, mining, and oil and gas sectors, with expected deal announcements to be made throughout the year.”

The company’s 2021 third-quarter revenue was up 70% from the same quarter in 2020, totaling $2.16 million. Its operating loss for the same quarter was $557,000, a lower figure than the two previous quarters.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.