PetroSun, Inc. (PINK: PSUD) announced that its subsidiary, PetroSun BioFuels Refining, has entered into a joint venture to construct and operate a biodiesel refinery near Coolidge, Arizona. The feedstock for the refinery will be algal oil produced by PetroSun BioFuels at company owned and operated algae farms to be located in Arizona.
The refinery will have an annual production capacity of thirty million gallons and will produce 100% renewable biodiesel. PetroSun BioFuels will process the residual algae biomass into ethanol.
Petrosun claims that Independent studies have demonstrated that algae is capable of producing in excess of 30 times more oil per acre than corn and soybean crops.
In a Feb 2, 2007 announcement PetroSun, Inc.'s field testing of the cultivation of algae for biodiesel production has progressed to the final stage prior to the construction of a commercial cultivation facility. This final stage will consist of producing adequate algae paste to test the output and economics of several biodiesel refinery manufacturers now under consideration by Algae Biofuels, a wholly owned subsidiary of PetroSun, which will own and operate the production and refinery facilities.