At 11 am on June 11 ^th , Republic of Korea Ocean Research & Development Institute (represented by President Kang Jeong Geuk) has entered into an MOU with Lotte Construction, AeKyung Petrochemical Co., Ltd. and Honam Petrochemical Corp. for a collaborative partnership. KORDI is planning to build a large-scale production facility after it completes verification experiments with the partners for microalgae cultivation and biofuel, and functional materials.

KORDI and its partner companies are aiming to build a 10ha-class production complex by 2013 to produce biofuel and high value-added materials, which would earn W300 billion year .

The Institute installed a 40t-scale verification test arena for microalgae biofuel inside the production complex last March, and has been densely raising 10 species of sea/river microalgae with high fat and carbohydrates content. Chief researcher Dr. Gang Do Hyeong explained that the facility can produce 600 liters of biodiesel a year.

In the US and Europe, the competition to research a biodiesel production model using microalgae is severe enough to be compared to a war. Notably, in the US investment is going to exceed KRW 1 trillion this year, proving its potential as a revolutionary biofuel production technology for the next generation.

Microalgae are widespread in freshwater and seawater, and have an oil productivity 8 times higher than ordinary terrestrial plants such as bean, jatropha, or canola. This productivity is based on its rapid reproduction rate, which enables the microalgae to double within 3~8 hours.

Furthermore, it is considered to be an efficient material that will enable Republic of Korea to live up to its responsibilities under the Convention on Climate Change, as it is reported that production of 100t of microalgae can reduce carbon dioxide by 180t.

Lotte Construction will work to design the optimization system and construction technology for mass-production, while AeKyung Petrochemical will develop microalgae biofuel production technology by adapting production processes currently commercialized for new renewable energy, and will secure biochemical product produ ction technology from the active component elements therein. Also, Honam Petrochemical will participate in the refinery-related sectors, such as harvest, extraction, and conversion into biodiesel.

President Gang said, "It is a strategic opportunity to address the issues of the energy supply and CO2 reduction at the same time, and we will take a leading position in this field with our 20 biofuel patent technologies." He also added that "We will draw full support from the Government so that we can develop this into a future growth engine for Republic of Korea."