SRS Company to Construct Demo Plant for Extraction of Oil from Algae

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In a unanimous vote, the Carlsbad City Council approved the purchase of a demonstration plant totaling $625,000 for the extraction of oil from algae.

In March, the city entered into an agreement with Carlsbad-based Center for Excellence for Hazardous Materials Management (CEHMM) to serve as fiscal agent in the administration of a grant obtained from CEHMM from the New Mexico Energy Innovation Fund totaling $1.1 million.

Lynn said CEHMM sought the services of vendors to provide the technologies and equipment necessary to extract oil from algae. He said eight vendors from around the world were contacted, but only one vendor, SRS Company, met the criteria and was able to demonstrate extraction of oil from algae, as well as make biodiesel from it.

The system to be built by SRS will be used to dewater and extract oil from algae at the CEHMM facility located at the New Mexico State University Agriculture Experimental Station located north of the city.

"We believe the bi-products from oil could be even bigger than the oil for fuel," Lynn said. "Our goal is to maximize everything we can to try to bring more jobs to Carlsbad. We don't plan to leave Carlsbad. All 22 of our current employees are from Carlsbad."

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