The facility will initially comprise a production plant of five photo-bioreactor modules, that Holcim Lanka will use to determine whether to go ahead with a larger facility.

It is expected that the Algae.Tec technology could be rolled out at other sites.

According to Algae.Tec, Holcim Lanka was attracted to the collaboration as a way of reducing its carbon footprint and generating valuable biofuel at below market cost.