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Friday 05 November, 2010

PSource Struct Debt

Portfolio Update

RNS Number : 7004V
PSource Structured Debt Limited
05 November 2010



5 November 2010

PSource Structured Debt Limited ("the Company")

PetroAlgae Protein Concentrate Confirmed as a Replacement for High Quality Fishmeal in Tilapia Farming by University of Idaho Study


PSource Structured Debt Limited (LSE: PSD, the "Company"), the London listed fund investing in senior secured debt and equity warrants predominantly issued by US based small-cap companies, announces that PetroAlgae Inc, its largest holding, yesterday made an announcement regarding the results of an independent study into the use of PetroAlgae Protein Concentrate as a replacement for high quality fishmeal in tilapia and other farmed fish species. The text of the PetroAlgae announcement is set out below:


New source of protein can replace menhaden fishmeal in a variety of farmed fish species


The Aquaculture Research Institute at the University of Idaho announced today that it has found that PetroAlgae protein concentrate (PPC) produced as a co-product along with the renewable fuel feedstock by the company's micro-crop technology system can replace menhaden fishmeal protein at levels up to 100% in feeds for tilapia.


"We are very encouraged by the results of this extensive study because they point to PetroAlgae protein as a highly desirable replacement for fishmeal at a time when feed demand is expected to increase dramatically in the face of limited traditional supply," said Dr. Ronald W. Hardy who conducted the study.


The study also found that PPC would be suitable as a fishmeal replacement for other farmed fish species. According to the study, tilapia is one of the largest-volume farmed fish species, and tilapia production is expected to grow from 2.8 million tons to more than 9 million tons by 2020, requiring 13 million tons of feed (up from 8 million tons in 2010).


PetroAlgae's micro-crop technology employs indigenous, aquatic micro-organisms suitable to local climates and is designed to enable its technology licensees to produce a cost-effective alternative to fossil fuels as well as a high-value protein co-product, while absorbing carbon dioxide from greenhouse gas emissions. Micro-crop farms utilizing PetroAlgae's technology are highly productive and grow new sources of protein locally that are not genetically modified and are resistant to local diseases. In addition to its uses in the aquaculture industry, the company expects PPC to be suitable for nursery swine, poultry, and, ultimately, for direct human consumption.


Dr. Hardy, who heads the Aquaculture Research Institute, directed the nine-week comprehensive University of Idaho PPC study. The study concluded that:


• PPC is capable of replacing fishmeal protein up to 100% in feeds for tilapia, without the need for amino acid supplementation or other adjustments to the formulation, and can provide growth performance similar to fishmeal.


• PPC, when combined with fishmeal, supported higher fish weight gain than with fishmeal alone, suggesting a positive synergistic effect most likely related to favorable amino acid balance in the feed.


• PPC does not change the composition of tilapia and does not increase tilapia mortality rates. Together, these findings indicate that PPC is a safe feed ingredient with no toxic indications after nine weeks of feeding.


• PPC yields nutrients that are highly digestible, demonstrating significant potential as a feed component for other farmed fish species.


• PPC has excellent suitability for producing low pollution feeds that reduce environmental contamination in dense aquaculture areas.


"PetroAlgae micro-crop protein presents a unique and sustainable route to a new, large-scale protein source to overcome the significant challenge of replacing fishmeal in aquaculture diets," said Dr. Hardy.


Because the fishmeal industry's main production centre is Latin America, far from Chinese and European consumption centres, fishmeal is one of the world's most internationally traded commodities. The International Fishmeal and Fish Oil Association, a trade body, estimated that each ton of fishmeal travels an average of 5,000 kilometres to reach its end-user in the aquaculture industry. By comparison, PPC allows for a shortened supply chain and reduces business risk, because micro-crop farms using PPC can be sited locally, close to consumption centres. Therefore, PPC has the ability to reduce the industry's carbon footprint, and its steady state production allows for greater quality control and just-in-time inventory management. PPC's other environmental benefits include lower pressure on ocean fisheries, lower risk of zoonotic disease, a positive carbon balance and a route to renewable fuel that is additive to the food and feed chain.


"We are very excited with the findings of Dr. Hardy and his team at the University of Idaho, said Dr. John Scott, Chairman and Chief Executive Officer of PetroAlgae. "Their reputation puts them at the top of their field, and we can proceed with a high degree of confidence to help our licensees commercialize PetroAlgae protein concentrate as a high-value replacement to traditional fishmeal in both quality and environmental impact."


For further information, please contact:

PSource Capital Limited

Soondra Appavoo

+44 20 7925 3156

This information is provided by RNS
The company news service from the London Stock Exchange

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