Turning Algae and Wood Chips Into Energy Jobs

Montana Company Receives $350,000 Federal Grant for Biodigester Plant

Algae and Wood Chips to be converted to Methane & Organic Fertilizer

Helena, MT—September 8, 2010—Algae Aqua-Culture Technology (AACT), a Whitefish, Montana, company, announced its receipt of a $350,000 U.S. government grant to stimulate the development of Montana’s algae-to-fertilizer industry. The grant, offered under the American Recovery and Reinvestment Act of 2009, was awarded by the Montana Department of Environmental Quality (DEQ).

AACT will use its grant money to immediately begin building an innovative wood chip to energy and fertilizer processing plant in Columbia Falls that will initially employ about 9 people. AACT’s proprietary process uses a greenhouse-based algae growth system and an anaerobic biodigester to transform a blend of the wood waste and algae into high-value methane for power generation, as well as into significant amounts of highly valuable organic fertilizer, according to Kathi Montgomery, Montana DEQ Public Education Specialist.

“Algae’s amazing productivity offers the ultimate path to a green economy,” according to an elated Michael Smith, AACT’s CEO and Grant Project Manager. “This award is not only gives AACT the initial funding it needs to move into full production, it also gives the timber industry a new way to capitalize on the bounty of Montana’s forests while also reducing Montana’s carbon footprint.”

“The AACT Green Power Housesm (GPH) will help Montana create new, long-term jobs for the woods products industry–and eventually for Montana’s farmers, factories, waste treatment plants and energy production facilities,” Smith said.

Montana U.S. Senator Jon Tester, who recently toured AACT to see their work first-hand, said, “This is a terrific example of how the Recovery Act is creating good-paying jobs by investing in on-the-ground Montana innovation.” “Getting rid of biomass by turning it into usable energy is a win-win, which is why it’s a big part of my Forest Jobs and Recreation Act. These are exactly the kind of Montana jobs I’m proud to support,” Tester said.

AACT CEO Richard Swope said,” In supporting AACT’s sustainable, environmentally-sound, biomass-driven, energy production methods with this grant, the Montana and U.S. governments demonstrate their long-term commitment to a better economic and environmental future for Montana’s forest and agricultural communities. Today Algae AquaCulture Technology begins the next chapter in putting its organic fuel, fertilizer, and food products to work for better land use, plant growth, water restoration and carbon footprint reduction. With this investment, Montana now becomes a showcase for the nation in application of technology to natural resources for a better future.”

The DEQ awarded the grant based on the determination that AACT would be able to adapt its computerized biomass processing technology to the existing mill operation and forest products found at Stoltze Lumber Company mill in Columbia Falls, MT.

Stoltze is a long-time, family-owned wood products company, which, like so many other Montana timber companies, has been searching for innovative technologies that will allow it to convert its wood resources into new product lines that are less affected by the boom-and-bust cycles of the American home building business.

Chuck Roady, Stoltze Lumber Vice President, said, “F.H. Stoltze Land & Lumber Company of Columbia Falls strongly supports the work and research being done by Algae AquaCulture Technology, Inc. (AACT) in their efforts to help improve and develop woody biomass renewable energy in Montana.

“The AACT technology is clearly one of the most promising opportunities to help build, preserve, and diversify Montana’s forest products industry economic strength in the renewable energy field,” Roady said.

The U.S. Recovery Grant is intended to stimulate economic recovery for the Montana economy. It is designed to help Montana maintain current jobs and to develop new long-term production and manufacturing jobs by applying successful technologies to renewable energy opportunities available on Montana’s timberlands, farms and factories.

AACT currently operates a demonstration site at the Stoltze Mill site just outside Columbia Falls, and the Recovery Grant money will allow it to begin building a full-scale, on-site, 5550 square-foot Green Power House and to begin gearing up to meet an accumulating demand for both its organic fertilizer and for its Green Power Houses.