Alltech is expanding one of its facilities to include one of the largest algae production companies in the world. Wednesday was the ribbon cutting ceremony in Winchester. Now the green slime can be used for everything from animal nutrition to bio fuels.

Alltech has been fermenting yeast to produce animal nutrition products since the 1980s. But when the plant reopens in April, they'll begin a new venture of fermenting algae. Alltech scientists believe algae has the power to solve some of the world's biggest problems of hunger, energy, and climate change.

"Algae is very fast growing, very versatile, and does a lot of great things," says President and Founder of Alltech, Dr. Pearse Lyons.

Most of the algae will be used to make animal food but may also produce food for people.

"Algae is a rich source of protein as well as having high value in vitamins, minerals, and other nutrients," says Alltech Research Director Becky Timmons.

A small vile the size of half of an ink pen is processed and in a short time, about 2-3 weeks, it will grow in a fermenter that's 265,000 liters. From there the algae is dried and turned into the end product. the facility will employ an extra 50 scientists and will lead the world on algae research and production.

"What Kentucky needs is a vision. What Kentucky needs is a game changer. This is a game changer," says Dr. Lyons.

East Kentucky Power Cooperative has teamed up with Alltech and will test how algae can be used to remove harmful gases when burning coal for electricity. This research could make coal even more environmentally friendly.

"Here we are in the state of KY where coal is our ace in the hole and we have this minor problem of carbon dioxide. Algae could actually solve that problem," says Dr. Lyons.

Alltech algae will begin production in April, and is expected to have one billion dollars in annual sales within five years.