Valcent Products Inc. [OTCBB: VCTPF] : Greenhouse Technology, Algae Oil, Biodiesel

October 28th, 2008

Valcent Products Inc. [OTCB: VCTPF] is an interesting company that creates, designs and patents highly innovative techniques for growing more efficiently in greenhouses. This is a market that I foresee a lot of growth. One of the primary products the Company has developed is called High Density Vertical Growth (HDVG). This was developed with Pagic Inc., and now allows greenhouses to grow a lot more efficiently by making use of all that previously waisted vertical space within the greenhouse.

The HDVG system not only uses a lot less water (just 5% of conventional field crops) but also produces 20x more food per acre without the use of herbicides or pesticides. The system works by using vertical sheets that have pockets where the plants are able to grow from. The sheets are moved around the greenhouse by a conveyor belt system to ensure each plant has access to the sun. The whole process utilizes technology which delivers nutrients to each plant while making sure each plant has the correct amount of light, water, heat, and pH balance.

Valcent hasn’t stopped there. The same vertical growing system can be slightly altered to grow an energy crop, algae. Algae is grown in mass to produce a vegetable oil for biodiesel. The first commercial scale bioreactor plant is being tested in El Paso, Texas. Initial results indicate that the production costs of oils will be much lower than both palm and soybean crops, making for an affordable way to grow our own energy. Just to illustrate the efficiency please note the per acre yields of oil: Soybeans (48 gallons), Palm oil (700-800 gallons), and algae (up to 20,000 gallons using just a pond system - not the HDVG system - and ponds have the surface area problem because light can only penetrate a few inches below the surface and evaporation and contaminants can hinder production.). Algae can be used to make either biodiesel, jet fuel or ethanol. Valcent has some really good videos that explain both the HDVG system and the bioreactor. I highly suggest you watch them.

A lot of interesting things seem to be going on with the Company. I’ve always had a personal interest in efficient greenhouse designs and growing biodiesel/ethanol efficiently as well. I live in the cold north, where our food travels thousands of miles and is low quality despite the high cost. It’s too bad I can’t do something with this patented technology - on September 16, 2008, a private Alberta based corporation signed a License Agreement for the exclusive rights to use Valcent’s HDVG system to grow vegetables in Alberta. Guess they beat me to it .

Overall, I really think Valcent has some interesting technologies that will help the greenhouse industry. If you’re bullish on the agricultural sector and/or the alternative energy sector (biodisel/ethanol), I highly suggest you take a look at this Company and watch the videos!

Full Disclosure: At the time of writing this article I DO NOT own shares in VCTPF.

Entry Filed under: Agriculture, Alt Energy, Investing