Solix Biofuels to build facility in Durango
Cari Merrill • Coloradoan • November 12, 2008

Fort Collins-based Solix Biofuels announced Tuesday it will build an algae biofuel facility in Durango, taking advantage of the industrial environment and expansive land in southern Colorado.

The company that focuses on creating biofuel from algae has raised $10.5 million in its first round of outside funding and has a $5 million commitment from investors to be used to build the facility almost 400 miles southwest of Fort Collins.

The plant will be jointly developed by Solix and Southern Ute Alternative Energy LLC.

The $5 million commitment is contingent on obtaining a lease for the space.

Solix CEO Doug Henston doesn't expect any difficulty in securing the space.

The Series A funding was led by I2BF Venture Capital, a London-based venture capital firm focused on biofuels, and Bohemian Investments of Fort Collins.

"We're able to use the resources available, lots of sun, lots of land that has no other real use because it's desert and the available saline water and the CO2 from the industrial plant," said Bryan Willson, co-founder and chief technology officer for Solix.

A large research and development effort will remain in Fort Collins.

The Durango facility will be a significant advancement for Solix, according to the company, providing the capabilities to produce thousands of gallons of algae-based biofuel at a rate per acre higher than current projects.

Currently, algae grown in Solix photo-bioreactors create five times the amount of fuel per acre of land per year than agriculture-based fuel such as corn-based ethanol and soy- or canola-based biodiesel, according to the company.

Set to build on 10 acres of the Southern Ute Indian Reservation, the plant will include photo-bioreactors to grow algae as well as a lab facility. The first phase of the two-part project is expected to be completed in 12 to 18 months.

The Southern Utes are “working very diligently as well to get this done,” Henston said Tuesday.

The second phase will include an additional 5-acre expansion, creating space to produce algae biofuel on a commercial scale.

Solix will continue to add jobs to provide adequate staffing for not only the Fort Collins location but the new plant as well.

Although Henston can’t say how many jobs will be added or in what time frame, it all depends on the project’s pace.

The Durango plant is significant not only for Solix but for the industry, allowing the company to show the market it can ramp up production to larger scale.

The new plant won’t provide large-scale production right away, but it’s a step to help obtain data and then expand to hundreds and even thousands of acres, Willson said.

Selecting a site in the state “demonstrates Colo-rado is a global leader in renewable energy and clean technology,” Henston said. “We think that’s very important for the state.”

Solix Biofuels is a spin-off and technology partner to CSU.