Algae company raises $14m in venture round

A Cambridge firm developing algae farms to recycle carbon dioxide from industrial emissions and provide feedstock for biofuels and other products said it raised nearly $14 million in venture capital. GreenFuel Technologies Corp., founded in 2001, said it is using the money to further develop its farming technology and move toward commercial scale operations.

The lead investors in this fundraising round are venture capital firms Access Private Equity of New York, Draper Fisher Jurvetson, of Menlo Park, Calif.; and Polaris Venture Partners of Boston. Bob Metcalfe, GreenFuel's interim chief executive, said the funding retires $6.3 million in debt and adds $7.6 million in new capital to launch algae farming projects.

The company has successfully tested its concept of using algae, which, like all plants, absorbs carbon dioxide and releases oxygen, to recycle carbon dioxide at several industrial plants. Carbon dixoide is a greenhouse gas contributing to global warming. In addtion, algae grown, harvested and processed using GreenFuel's methods can be used in feeds, food and fuels, including algae biodiesel, the company said.
(By Robert Gavin, Globe staff)