The company has already secured two investors coalminer Anglo American and private equity firm The Sentient Group.
MBD Energy has signed contracts with three coal-fired power stations for utilizing its algae-producing carbon capture and recycling technology.
The company in collaboration with the Queensland state government is conducting its first pilot project at the Tarong Power Station, estimated to produce 9.8 million tonnes of greenhouse gases per year.
The carbon dioxide emitted will be collected and released directly into an adjacent algae farm and captured gases will be pumped into the circulating waste water, which will synthesise the oil-rich algae which can then be turned into edible seaweed products or oils.
MBD Energy CEO Andrew Lawson said the firm is expecting to grow algae there in September from which they plan to produce one hectare of algae.
The company targets production between 200-400 tonnes of algae per hectare.
The company has partnered with James Cook University to develop and test its technology and plans to conduct similar carbon capture and recycling programs at Loy Yang Power Station in Victoria and Eraring Power Station in New South Wales.
MBD management owns about 20 % stake in the company, while Anglo American has 20% and The Sentient Group holds a 19.9% interest.
The Advanced Manufacturing Co-operative Research Centre has invested $5m in MBD Energy and has an option to take an equity interest in the company.
