Solix Biofuels, an energy technology firm focused on algae-based intermediates for fuel and chemical production, announced that it has raised US $10.5 million in its first round of outside funding. The company also said that it has reached an agreement with investors for an additional commitment of US $5 million, to be used to build an algae biofuel facility near Durango, Colorado.

The project will showcase Solix's ability to produce biofuel and feedstocks for the chemicals industry at commercially-feasible production levels and costs, the company said.

The Series A funding was led by I2BF Venture Capital, a London-based venture capital firm focused on biofuels, and Bohemian Investments, a private investment company based in Colorado.Companies that also participated in the round include Southern Ute Alternative Energy LLC, Valero Energy Corp. and Infield Capital.

The funding will support Solix's development of its fourth-generation technology, including a proprietary closed photo-bioreactor system, which produces biocrude from algae. The US $5 million follow-on commitment from the investor group will provide construction financing for the pilot plant, which will be developed jointly by Solix Biofuels and Southern Ute Alternative Energy LLC.