Market Playground

By John “Phaeton” Davis

BioCentric Energy (BEHL) is on the front lines of a revolution, a green one that will affect a lot of everything from animal feed, to cosmetics, to food, to medical treatment, to the fuel you put in the tank of your vehicle in the future. It’s not a hostile revolution, it’s very peaceful in fact, and it started almost 4 billion years ago.

Algae, nano-sized, single-celled, and incredibly robust, have survived many of earth’s harshest environments for billions of years, while peacefully and quietly, at the beginnings of the food chain, manufacturing support for almost every life form on earth — and the raw materials in many products we use every day. BioCentric Energy has researched this amazing algae and developed a production system to comericalize algae intended for many product markets. Soon to be placed into commercial operation, the BioCentric Closed-Loop PhotoBioReactor, or PBR for short, is intended to be the lowest system and production cost commercial algae system for high revenue available.

The basic scientifically proven concept sounds simple: put a little ‘starter’ algae strain in a clear tube or container, add some water, feed it some nutrients, put it in the sun, and algae grows. Simple as that…or is it? Until recently, low system and production cost with high revenue was a goal many have failed to achieve. This is where BioCentric comes into the picture. Taking that simple basic concept, researching and developing an expansion upon the concept, combining cultivation and harvesting methodology with their proprietary methods and technology, scientifically researching and selecting specific strains of algae focused for specific products, carefully qualifying and developing clients and partnerships, implementing Referral and Value Added Reseller (VAR) programs, providing specialized and scalable system design, providing system and turnkey system solutions, deploying algae production PBR’s, and continuing improvement with research and development, BioCentric Energy has achieved this goal — and is getting ready to prove it. The first BioCentric Energy commercial PBR system is nearing completion in California at Death Valley Junction.

BioCentric Energy, originally founded as a Research and Development (R&D) company, is transitioning to increase commercial sales, add personnel, execute contracts and orders, and preparing to grow as it focuses on a leadership position in this industry. The BioCentric system represents a reality of meeting the supply and product needs of many markets while providing a lower system and production cost with high revenue capability. As BioCentric establishes its place in industry, the company could become a very profitable investment venture.

Among the BioCentric Energy PBR systems first algae based products will be Omega 3 oil, a product for which demand is increasing and overall market is growing at up to 19% annually in the United States — and up to an astounding 40% annually world wide. The current dominate source of Omega 3 is fish oil in almost 85% of the present worldwide supply of Omega 3. Fish do not actually produce Omega 3 fatty acids, but instead accumulate them from either consuming algae, or zooplankton that eat micro-algae, which produce these fatty acids, as is the case with fish like herring and sardines, or, as is the case with fatty predatory fish, by eating algae, or zooplankton that eat micro-algae, or prey fish that have accumulated Omega 3 fatty acids from algae. In farm raised fish Omega 3 fatty acids are accumulated by eating fish feed produced with fish oil. In other words, algae is the original source of Omega 3 fatty acids in fish. Worldwide, more than 50% of fish oil is fed to farmed salmon and almost 70% of a fish is not used for Omega 3 production. These are wasteful and costly processes.

There are different “grades” and content of fish oil for Omega 3 products. In an effort to keep their products marketable, fish oil Omega 3 suppliers vary the grades and contents, often mixing larger precentages of lower grades with some higher grades. The packaging and adverstising laws still allow these companies to only advertise the content of the highest grade if a precentage is in the product. Most suppliers of fish based Omega 3 do this at some point, when in reality the products may contain contaminates in the lower grade fish oil, but not in the higher grade component. The BioCentric Energy system algae based Omega 3 oil doesn’t need the processing, handling, or resources fish based Omega 3 requires, and eliminates the high cost, contamination issues, and waste of fish based Omega 3 production.

In 2009 the wholesale fish oil price was approximately $400.00 per gallon, with a retail end-consumer markup of  approximately 75% or greater. This year, 2010, the average retail end-consumer markup price increased worldwide, with fish oil price approaching several hundred dollars per gallon for non-prescription dietary supplements and up to several thousand dollars per gallon as a prescription drug ingredient. Supply of fish sources for production of Omega 3 has dropped 18% worldwide over a year period, and continues to decline, due mostly to the increasing cost of accessing or maintaining fish sources, along with depletion rates and contamination issues. Production and processing costs of fish based Omega 3 continue to increase, despite ongoing fish source management and farming efforts. In the United States, the Omega 3 market is projected to approach $7 billion in 2011, and can be projected to be approaching $12 billion by the 2013 – 2015 time frame in some market areas, and up to $18 billion by 2020 for the market, as more food, beverage, health, medical, cosmetic, personal care, pharmaceutical, and more products increase use of, or begin using, Omega 3 in their contents. The U.S. retail food market is projected to increase by another $40 billion in the 2012 – 2013 time frame, with approximately 80% of retail food products containing Omega 3.

The BioCentric Energy PBR algae Omega 3 oil can be marketed for approximately $200.00 per gallon or greater, without the burden of the cost factors and other issues present and increasing with fish based Omega 3. Other first algae products for BioCentric PBR systems will be astaxanthin, phycocyanin, and chlorella, with some of these selling for up to $7000.00 or more per kilo (2.2 pounds), and increasing in use for medical, pharmaceutical, cosmetic, nutrition, food, bevergae, health, and nutraceutical product markets. Algae production from the BioCentric Energy PBR systems for products is controlled in the sterilized PBR environment, rendering it free from the possible contamination issues common with, and eliminating the additional processing costs and methods needed for, open pond based algae growth systems.

The BioCentric Energy PBR concept is also capable of the same low production cost focus for algae bio-fuels production, after all, the original source of petroleum is algae. Bio-fuels from algae as an industry is in its infancy. Research and development continues worldwide by many entities large and small, along with scientific sectors and universities, and governments are engaging with funded projects focused on bio-fuel from algae. Some bio-fuel is already being produced but is not yet wide scale in its adoption. Some corporations and airlines are in the planning stages of switching their vehicle or aircraft fleet fuel to algae based bio-fuel. The U.S. military is currently using algae bio-fuels in some applications. Algae may hold the most promise of any other source as a means to help end dependency on foreign oil. The main thing needed for the overall marketing of algae based fuels is a low cost per gallon which beats the cost per gallon of the foreign oil based product, and more research is needed before this takes place. Although the beginning of widespread adoption of algae based bio-fuel to help replace foreign oil dependence is between five to ten years away, and BioCentric Energy’s initial focus is on establishing market presence through systems for producing products readily marketable and profitable now, BioCentric has continuing R&D and a scalable PBR concept to meet future product needs.

The U.S. Department of Energy is conducting research for algae based bio-fuels and in May 2010 produced the ‘National Algae Biofuels Technology Roadmap’, setting the path of research and development for algae bio-fuels to help replace foreign oil dependence and ensure a green renewable resource for the future. The list of algae research and development participants from educational, medical, government, scientific and commercial entities is large and growing, not only for algae based bio-fuels but for all its uses as well.

Another product of a BioCentric system is jobs, something badly needed in today’s roller coaster economy. Secretary of Energy Steven Chu had this to say at the White House ceremony on May 5, 2009, announcing $800 million in new biofuel research activities:

“Developing the next generation of biofuels is key to our effort to end our dependence on foreign oil and address the climate crisis – while creating millions of new jobs that can’t be outsourced”.

– Secretary of Energy Steven Chu

The company recognizes its important socioeconomic responsibility. Although not focusing on biofuels at this time, BioCentric intends to create jobs in the algae industry and announced a focus on military veterans to be trained and employed to manage BioCentric commercial sites to be located throughout the United States. In recognition of global needs BioCentric Energy is developing its Solutions 28 business plan for the United Nations and other philanthropic organizations working to improve economically deprived regions.

BioCentric Energy systems can potentially address other economic, environmental, resource, energy, or land use issues with competetive advantages. Other plant and food crops are also used for certain products for markets which BioCentric systems algae production can potentially, or will, address. BioCentric systems can use as little as 1/10th, or less, the land space used by these other crops. The PBR systems can be placed about anywhere, such as areas which are not usable for other purposes, like arid desert regions. These PBR systems can potentially achieve the same or greater production as these other crops, while not needing or causing the economic, energy, and resource expenditures of, or causing the environmental concerns or depletion issues present with, these other crops.

BioCentric systems have the possibility to address a wide range of markets involving the food, beverage, plastics, cosmetic, nutrition, health, nutraceutical, medical treatment, pharmaceutical, personal care, animal feed and care, pet care, industrial pollutant, wastewater and sewage treatment, carbon dioxide sequestration, carbon footprint reduction markets, and more. These markets are large and expected to increase, for some of them double in 2011, with continued future growth. The company has considered, or is exploring, addressing, or providing systems for, these markets.

Algae are truly wonderful, providing a safe, clean, renewable resource, and helps everyone. It’s amazing that such a small thing can make such an impact. For “Going Green”, algae are among the greenest of all. Algae have been waiting patiently for billions of years and BioCentric is getting ready to commercialize that green. BioCentric systems are backed by a team of experienced and seasoned professionals from business, industry, market, technical, and scientific disciplines, focused on a smorgasbord of possibilities or realities of profit for BioCentric Energy investors, clients, partners, and Value Added Resellers. There is a tremendous amount of money, time, people, and resources deployed by many entities to explore all the secrets and uses of algae. BioCentric is getting ready to soon commercialize some of these uses through its first commercial system, with more systems to follow in the near future. BioCentric Energy is one of those gems found occasionally that’s hard to recognize, but turns out to be a diamond later. BioCentric Energy is that diamond, in the rough right now, but may soon be sparkling.

(*Note: A gallon of Omega 3 oil in this article means a U.S. gallon (128 ounces) for which the entire gallon volume is 100% pure Omega 3 oil with no additional oils such as soy oil, or other filler items, added to fill/complete/dilute the gallon volume. Some information in this article is based upon private comissioned or purchased market research reports. Internet links are provided for descriptive, illustrative, explainatory, or information purposes.)

For continued discussion about Biocentric Energy visit the Market Playground BEHL forum.

A Playground Radio interview with Biocentric Energy Chairman of the Board Dennis Fisher can be heard at the following link: