Algae - still attracting the “green”
Amid technical setbacks and a down economy, confidence is still high among investors and developers that algal-derived biofuels will be able to compete with fossil fuels.
Facts about algae
Certain types of algae contain significant concentrations of lipids that can be used as fuel. These algae are second generation biofuels because they have little impact on the food supply and are better able to reduce greenhouse gases more than the first generation fuels.
In fact, algal production is 20 times greater than corn and soy in the same acreage and 15 times greater than other second generation fuels like jathropa and rapeseed. Some experts estimate that algal-based fuel could compete with petroleum at $60 per barrel.
The upside of algae seems almost too good to be true. They can be grown using wastewater or CO2 emissions from fossil fuel combustion. Algae clean the water, release oxygen and ultimately can be used as fuel.
Investments in algae still growing.
Compared to solar, algal-derived fuels are much more capital efficient, making them attractive to investors.
Cascade Investment, controlled by Bill Gates, is helping Sapphire Energy raise more than $100 million this year. Sapphire plans to produce 10,000 barrels of “green crude” in the next 3 to 5 years.
In addition, Boeing has announced that it expects that plant-based jet fuels, including algae, will be certified for flights by next year.
There has also been a surge in patent applications for algal technologies.
Not all good news
Yet with all this good news, the premier algae company, Green Fuel Technologies has not found that happy ending.
In January 2009, Green Fuel Technologies, cut its staff in half. Then in May, it closed its doors, a victim of the delays, technical problems and credit issues.
Green Fuel attempted to use a closed system for growing algae. It experienced technical difficulties translating a process that worked in the laboratory into full-scale commercial production. Ultimately Green Fuel’s project with Arizona Public Service was shut down due to rising costs and algae blooms.
Companies such as Aurora Biofuels and PetroAlgae that use open-pond systems are finding lower capital costs and perhaps more success.
Prize Capital, a venture capital firm, is creating a $10 million algae fuel prize to encourage advances in algal biofuels technologies.
Even with the demise of GreenFuel and the current economic slowdown, investors nonetheless seem to be betting on the long term prospects for algae.
Further reading:
Photos & Videos:
http://www.youtube.com/watch?v=DTTn_mhih68
Copyright 2009 — K.J.Collins
