Algae Production Incubator Program
A collaboration between academia/research and the algae industry.
What is an algae production incubator?
Today, American farmers are facing very difficult times. Growing terrestrial crops have become unprofitable and farmers cannot compete with all the imports coming into the US. With excess land and empty commercial buildings sitting idle for years, NAA is assisting land and building owners in redeploying and repurposing underutilized assets working with new algae start-up needs.
Algae is renewable, does not affect the food channel and consumes CO2. The National Algae Association has been a focal point, bringing together the minds that are capable of developing nutraceuticals, pharmaceuticals, cosmetics, organic fertilizer, food and feeds.
The National Algae Association collaborates with various empty land and building owners to help lower some of the start-up costs in exchange for (ie, free rent the first 12-18 months for a small minority interest in their company and a small net profits interest. A potential win-win! The NAA algae production incubator program matches the needs of the algae start-up company (ie, land, commercial building), water, CO2 offered by private owners/industry (called a “host company”). New algae start-ups may experience the benefits of reduced expenses the first 18 months scaling up into commercial production. (ie, free rent of space first 12-18 months until commercial production benchmark is met in exchange for a minority interest. The new start-up pays for water, CO2 harvester rental. Students will assist new algae start-up with research, testing, monitoring and benchmarking.
Benefits to Students, Algaepreneur’s and Existing Ingredient Companies
No upfront real estate costs or long term leases. Rental of harvesting equipment or outsourcing extraction, helps reduce initial upfront costs.
Benefits for the Host/Provider:
The advantages of this type of arrangement to a host company are numerous. The main advantage is that the host company would be taking advantage of underutilized agricultural land already in its possession by redeploying and repurposing the land for algae farming.
Other advantages include:
- low risk and a potentially high yielding investment
The Matching Process
Step 1: Submission of completed Preliminary Applications to the NAA.
Step 2: Review of information provided to determine needs and services/facilities available.
Step 3: Once a potential match is found, the negotiations begin. Negotiable items include: the amount of rent, the length of the term of the lease, the exact services to be offered, the exact milestones to be met, if any, and the amount of equity that the incubator company will give up, if any.
Once all of these areas have been addressed, the appropriate legal documentation is signed, and the business incubator is hatched!