Solix Biofuels (Ft. Collins, CO), a developer of algae cultivation technology systems, will "investigate" the use of algae to produce specialty chemicals for BASF. Solix says it will test multiple algae species in its proprietary  growth system for BASF. Financial terms of the deal were not disclosed. BASF did not specify which specialty chemicals it plans to produce using algae by press time.

Solix produces oil from algae at its Coyote Gulch, CO plant. The site uses carbon dioxide produced by an undisclosed amine plant. The site uses carbon dioxide produced by an undisclosed amine plant and waste water produced by coal-bed methane production. Algae consumes carbon dioxide (CO2) as part of their growth cycle, and can potentially provide a way to produce certain chemicals from a renewable source.

"This collaboration with Solix Biofuels demonstrates BASF's commitment to generate growth from industrial biotechnology," says Harald Lauke, president of the specialty chemicals research at BASF.