A collaboration between colleges and the algae industry.
Mentoring new algae startups, supporting them through upfront challenges while leveraging college/university infrastructure for R&D to support startups in early stages grow to the next stage.
The National Algae Association facilitates an Algae Production Incubator Program that provides training to microbiology and engineering students and private industry in algae production process as a development tool to nurture and expand algae production/indoors or on acreage in the US and internationally to create new jobs and investment opportunities.
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 with various empty land and commercial building owners to help lower some og the up-front start-up costs in exchange for ie, free rent the first 12-18 months for a smal minority interest in their company and small net profits interest once generating revenue. A potential win-win! The NAA algae production incubator program matches the needs of the algae start-ups company (ie, land, building, water and FCO3 offered by private industry (called a Host company). New algae start-ups may experience the benefits of reduced up front expenses the first 18 months scaling into commercial production (is, free rent space for 12-18 months until production milestones and benchmarks are met in exchange for a minority interest. Not controlling interest by a VC. The new algae start-up is responsible for paying for its water used, electricity and harvester rental. NAA arranges for students from colleges and universities to assist new algae start-ups with microbiology research, testing and engineering. 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 its use of water, electricity, CO2 and harvester rental. Students will asisst wit research, testing, monitoring, engineering and benchmarking.
I. 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.
II. 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
III. 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!