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Algae Scam in the Penny Markets


http://algaelink-bioking-scam.blogspot.com/

ALL the companies involved in algae oil solutions are lying about the production figures to sell demonstration plants simply to cash in on the hype or sucker you into paying millions for a system that will never work. At the end of the day you are just buying into a million $ scam.

They will tell you things about how the demonstration reactor must be used first to test various types of algae and how it takes anything from 6 to 18 months to do this. So you are paying for their research only to discover it will never work anyway. (Long after they have run off with your money)

You will also look at great financial spreadsheets showing 20 to 95% ROI (return on investment) for a few million dollars but you will be forced to pay upfront for the pilot plant with promises of refunds when you buy the full sized plant. (which will never happen and they know it)

It all boils down to a good concept that works in the lab but not in practice. The system struggles to produce the large enough quantities of algae to start with and then you have to convert that to diesel which is very expensive. There are also many many operational costs and inputs like CO2 which sounds simple but you need a tons of it to make this work. Soon you will discover that the biggest problem you are left with is truck loads of algae cake (a pile of algae) that you are lead to believe you can sell for a fortune and actually makes up majority of your profits!

Everything sounds very good and huge figures are flashed around like its chump change but the jokes on you when you discover your demonstration plant is not doing well a few months later.
They will also tell you they have sold hundreds of these trial plants and have a few full blown plants currently going into production with 100+ ton capacities around the world.

Their offices, demonstrations, factory and presentations are all professional quality - it's hard not to believe it will work. However if you have ever been to see a functional demonstration it will be unlikely you will actually see quantities of algae coming out the machine never mind an oil press that works. It all smoke and mirrors.

Next up is a some actual quotes and costs...
All based on the fact that the process actually works and you can put it in a country that has 365days of sunshine because if this has to be powered by conventional lighting you will have the biggest electricity bill in the world.

Algaelink.com initial quote:

Here is the initial quote I got from Algaelink.com
for a 50 ton per day production plant.
Prices are quoted in US$

Biomass production ton per day 50

Total Investments $17,265,310

Investment per ton of $345,306
dry biomass per day

PRODUCTION
Annual Algae production 18,000,000 Kg.
Annual Oil production 8,100,000 Litres
Annual production of Biodiesel 8,100,000 litres
Algae cake annual production 9,900,000 Kg.
Glycerine annual production 1,012,500 Liters
Others (fat acid) 162,000 Kg.
Ton of CO² removal 35,280 tons

Sales Earnings
Annual sales of Bio diesel $6,075,000
Algae cake annual $13,365,000
Glycerine annual $354,375
Others (fat acid) $40,500
Carbon fees $352,800
Annual incomes $20,187,675

COSTS
Fertilizers $677,166
Wages $523,944
Energy $1,199,902
Hexane $64,800
Alcohol methyl $546,750
Catalyser $89,100
Local transportation $117,000
Maintenance spare parts $345,306
Administration costs (tel. office supplies..) $40,000
Insurances $288,203
Miscellaneous $80,000
Sales and representation $50,000
Amortization (5 to 10 years) $2,512,165
Interest $1,046,487
Total annual cost $7,580,824

COSTS / Liter or Kg.
Ton / day biomass reactor 50
Cost per biodiesel liter $0.49
Cost per Kg of algae cake (tourte) $0.35
Cost per Kg of algae $0.32

Biomass production ton per day 50
Annual Incomes, turnover $20187675
Annual Costs $7580824

Incomes - costs $12606851

ROE - Return over Earnings 62%
ROI - Return over Investment 73%


Algaelink.com final quote:

After meeting with them - here is a quote for the same 50 ton plant. (after we waste tons of time and money on this project)
We told them we wanted to go ahead and skip out the demonstration plant or at least do it at the same time thereby going into full production as soon as possible.
Now this is what we got back... not a quote for $17mill (11.4mill Euros) as originally indicated BUT now for $119mill (80mill Euros). Why? because this is basically what it would cost and a lot more as this is completely based on best case production rates.
This quote also offered no guaranteed production quantities and did not include the bio-diesel conversion equipment (costing millions) or the operational and chemical costs which are also in the millions - never mind the fact its all ex-vat)
The original sales pitch was based on a 5 to 10 year amortization and the fact that you can actually sell mega tons algae cake for a great profit as the oil production is less than 50% of the goods. Now you are looking at a 900% loss and you will kiss 100% of your $119mill goodbye.
The quote below details a production rate of 1200g/m3 per day. (based on what I don't know)
Compare this to the pilot plant they offer at 3.5 cubic meters capacity which seems to produce less than 1kg (or less) from all information sources - this is now claiming a production of 4.2kg a day equivalent - which is near impossible. So if the pilot plant covers 48m2 the 50ton plant would cover 2.4mill sq meters. (which is equal to 593 acres which is enough space to park 118600 cars) and this is probably best case scenario - worst case could be double this in size and could cost up to 3.45 billion euros if you use the pilot plant example. Now calculate the cost per litre of oil - $22/litre.
It cannot and will not ever work - even if you work it out on best case scenarios it would cost about $5 a litre using the fantasy figures supplied.

So why did they initially quote $17million to start with? and include detailed spreadsheets that are all useless?

"The Quote"
Thank you very much for your interest in our Photo bioreactor technology.
We are pleased to provide this Offer you have requested for an AlgaeLink Photo bioreactor plant based on your requirements of 50 ton per day.
This system is based on using polycarbonate tubing.
We have estimated the price at 80,000,000 euro for the photo bioreactor.
This is based on a productivity rate of 1200g/m3 per day.We have estimated the price at 80 million euro for the photo bioreactor.. Without the results of the demo unit we cannot offer more exact costings at this stage. The monitoring of your system will indicate the realistic productivity on location and this result will impact on the design itself. Another very important issue that will reflect on the total cost is mentioned section 4 (terms of payment). The initial phase is the Preliminary Engineering and Project planning phase. Once the initial phase is accomplished AlgaeLink will address the final cost estimate together with the client. AlgaeLink is responsible for the design and control, however in phase 2 we discuss the options to buy the components locally. We recognize that the tubes and down stream components if purchased locally will reduce the total project cost significantly. Please find the offer details and delivery and payment conditions detailed below and technical and scope of supply information attached. This offer is for the design, manufacturing and delivery of a plant for the above stated capacity. The scope of the offer covers the Algae Reactor itself and not other components such as Carbon capture, harvesting and drying. The scope of the offer is provided in accordance with the Technical Description and Scope of Delivery attached to this offer.The down stream components have been touched on here, however these components can be found locally or by Algae Link. The construction of all foundations, the building,required road-works and supply of all necessary utilities (e.g. electricity, water) will be your responsibility. This components are taken into consideration for our customized design.After signature of the contract it will be necessary to visit the chosen plant site immediately to collect all requested information and data of the location to prepare the detailed site planning.
"End Quote"