Algae, is 'green gold' in the biotech industry
The Northern Cape town of Upington is set to become a major algal
biotechnology cluster, with one key investment confirmed and several more in the
pipeline.
Venture capital fund Bioventures and Cape Biotech, a government-funded body
that promotes biotechnology development, recently announced investments in
Natural Carotenoids South Africa (NCSA). NCSA uses CSIR-developed technology to
produce natural carotenoids, powerful anti-oxidant substances much in demand in
the health, food and cosmetics industries, from algae.
A pilot plant has been running in Upington for several years. With loan
funding from Cape Biotech and an equity investment from Bioventures, NCSA is now
set to construct a full-scale production facility.
"Currently a lot of the carotenoids used in food, health supplements and
cosmetics are artificial," says NCSA's Bevan Jones. "The natural
product
commands a premium on global markets, but there are very few places in the world
that have the right conditions for growing the algae so supply is
restricted. It's a major export opportunity for us."
"Upington is hot and dry with high UV radiation all year round,"
says Cape
Biotech CEO Dr Mark Fyvie. "It's an ideal environment for algae-based
biotechnology development". The algae are cultivated in large ponds fed by
water from the Orange (Gariep) River, with extremely low rainfall enabling
tight control of the growing conditions.
Upington's low levels of pollution are an added bonus, as the algae will be
untainted by pollutants, improving the quality of the naturally-derived
carotenoids.
NCSA will initially produce beta-carotene biomass and later formulated
products from a single celled algae, Dunaliella salina. But with this
plant
acting as the anchor tenant for a future biotechnology hub in Upington, work is
already far advanced on developing technologies to isolate individual
carotenoids as well as grow other algae species, such as Spirulina. A
community Spirulina plant is already being planned. Other sought-after
carotenoids that could soon be produced in Upington include lutein and
astaxanthin both reported to have health benefits as well as being used in
cosmetics and as food colourants.
Fyvie says algal biotechnology is one of Cape Biotech's five key strategic
focus areas for biotech development. The others are diagnostics, vaccines,
drug delivery alternatives and bio-prospecting.
"This part of the Northern Cape has seen very limited development
because
of its remote situation and extreme weather conditions", Bioventures' Dr
Heather Sherwin "and poverty is a real problem. The development of the
algae hub will create jobs and opportunities for supplies as well as stimulating
new investment. Biotechnology has given us the perfect way to turn the region's
weaknesses into assets."
Bioventures, formed in 2001, is South Africa's only venture capital fund
specialising in biotechnology and the life sciences. Investors in the Fund
include the International Finance Corporation, the Industrial Development
Corporation, Sanlam and Real Africa Holdings. So far it has committed around
R50m to investment in South African start-up biotech companies that meet the
fund's strict investment criteria, with investments ranging between R2m and
R12m. Cape Biotech was launched in April 2003 as one of three biotechnological
regional innovation centres (BRICs) around the country. It is a Western Cape hub
for the development of commercially viable life sciences entities.
More information:
www.capebiotech.co.za
Related articles:
 SeaWeed
- Some useful "weeds"
Biotechnology
- The next wave
|
