UPDATED, May 2011
OILGAE DIGEST
The Algae Energy Industry Opportunities & Prospects
Oilgae is the definitive resource for algae energy. In addition to being an online hub for all aspects of algae fuels, the Oilgae team is also a regular contributor to various online and offline forums. The Oilgae team members have been invited to speak and present at numerous international conferences and seminars.
Contact
A5C, Anugraha Apartments,
41, Nungambakkam High Road Chennai – 600034, Tamil nadu, India
Phone: +91(44) 45590142 Mobile: +91‐98413‐48117 Email: [email protected] 2
List of Contents
1. Introduction to Algae Energy 1.1 Algae & Energy – Background and Concepts 1.2 Energy Products from Algae Biomass 1.2.1 Biodiesel 1.2.2 Ethanol 1.2.3 Methane 1.2.4 Hydrogen 1.2.5 Other Hydrocarbons 1.2.6 Prominent Companies & End Products 1.3 Algae to Energy Processes 1.3.1 Strain Selection 1.3.2 Algaculture 1.3.3 Harvesting 1.3.4 Oil Extraction 1.3.5 Conversion of Oil to Biodiesel
2. Size & Scope of the Algae Business Opportunity 2.1 Energy Industry Payoffs 2.1.1 Global Energy Industry 2.1.2 Oil ‐ Big Challenges & Big Payoffs 2.2 Applications & Uses for Algae 2.2.1 Fuel Applications of Algae 2.2.1.1 Biodiesel 2.2.1.2 Ethanol 2.2.1.3 Hydrogen 2.2.1.4 Methane 2.2.1.5 Hydrocarbons 2.2.2 Non‐fuel Applications 2.2.2.1 Bioremediation 2.2.2.2 Other Non‐fuel Applications 2.3 Industries with Synergistic Benefits from the Algae Energy Opportunities 2.4 Wide Range of Business Opportunities
3. Real World Status of Algae Energy Projects 3.1 Prominent Companies 3.2 Status of Algae Fuel in Real World 3.2.1 Industry Concentration 3.2.2. Dominant Designs 3.2.3 Implementation Status of Prominent Companies 3.2.4 Q&A 3.3 Bottlenecks & Barriers 3.3.1 Biggest Challenges 3.3.2 Entry Barriers 3.3.3 Q&A
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4. Investments & Returns 4.1 Investments 4.1.1 Lab Stage 4.1.2 Pilot Stage 4.1.3 Commercial Stage 4.2 Returns 4.3 Costs 4.4 Q&A
5. Profiles of Top Algae Energy Companies
6. Investments & Venture Capital 6.1 Quantum of VC Investments 6.2 Companies that have Received VC Funding 6.3 Government & Other Public Initiatives 6.4 VC Perspectives
7. Business Strategies 7.1 Key Success Factors 7.2 Niche Focus 7.3 Exploring Opportunities in Support Industries 7.4 SWOT Analysis 7.5 Lab Stage & Pilot Stage 7.6 Teams & Expertise 7.7 Monitoring for Breakthroughs 7.8 Things to Avoid 7.9 Deciding the End Product 7.9.1 End Products – Q&A 7.10 Understanding Your Country / Region’s Regulatory and Incentive Environment Better
8. Future Trends 8.1 Perspectives 8.2 Predictions 8.3 Future Research Needs ‐ Thoughts from the ASP Team
9. Interested? Next Steps 9.1 Organizations 9.2 Algae Collection Centers 9.3 Algae Culture Collection Centers – from World Federation for Culture Collections 9.4 Ask Oilgae
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Preface & Objectives
Algae, a third‐generation biofuel feedstock, present one of the most exciting possibilities as a future solution to our energy problems, especially that of transportation fuel. In the last few years, there has been an accelerated amount of activity in this field.
However, the field of algae energy is still in its nascency. While many around the world have heard about the energy possibilities from algae and would like to know more, few resources are available that provide a definitive overview of the algae energy industry, its potential, the status of various companies in this industry, and what the future is likely to hold for this industry. Entrepreneurs, investors and businesses around the world are keen to have a resource that provides structured data, insights and opinion about this important field, a resource that facilitates them to decide on further steps.
The Oilgae Digest was prepared to satisfy such a need. The Oilgae Digest is a companion report to the Comprehensive Oilgae Report (www.oilgae.com/ref/report/report.html) which is intended for users who are more advanced in this field.
The Oilgae Digest has been specifically compiled for businesses, entrepreneurs and investors and answers the following questions:
1. What is the current and future potential for deriving energy from algae?
2. What are the various energy product possibilities from algae?
3. What is the real‐world status of algae‐energy efforts?
4. Which are the prominent companies in this field and what are their current efforts?
5. What industries and companies will benefit most by investing in this field?
6. What is the quantum of investment required in this field?
7. What are the key success factors required to succeed in this exciting business opportunity?
8. What types of venture capital investments are happening in this industry?
9. What are the real bottlenecks / problems that could hamper the growth of this industry?
10. What are predictions for the future with regard to challenges, possibilities and breakthroughs?
11. What are the next steps you should take should you be interested in exploring further?
The Oilgae Digest was prepared by Oilgae, the leading business intelligence provider for the global algae fuels industry. This report was last updated in the first week of May, 2011.
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1. Introduction to Algae Energy
1.1 Algae & Energy – Background and Concepts 1.2 Energy Products from Algae Biomass 1.2.1 Biodiesel 1.2.2 Ethanol 1.2.3 Methane 1.2.4 Hydrogen 1.2.5 Other Hydrocarbons 1.2.6 Prominent Companies & End Products 1.3 Algae to Energy Processes 1.3.1 Strain Selection 1.3.2 Algaculture 1.3.3 Harvesting 1.3.4 Oil Extraction 1.3.5 Conversion of Oil to Biodiesel
Algae, ranging from single‐celled microalgae to large seaweeds, are the simplest and most abundant form of plant life, responsible for more than half of the world's primary production of oxygen.
Algae are an extremely important species. They produce more oxygen than all the plants in the world, combined; in addition, they form an important food source for many animals ranging from such as little shrimps to huge whales. Thus, they are at the bottom of the food chain with many living things depending upon them. With the recent research and interest into using algae for producing biofuels, they have the potential to become even more important.
1.1 Algae & Energy – Background & Concepts
Algae can be broadly categorized into two: Microalgae and Macroalgae. The chief physical distinguishing factor between the two is the size.
Microalgae, specifically, posses several attractive characteristics in the context of energy and biofuels:
• They can be grown under conditions which are unsuitable for conventional crop production.
• Oil yields from algae are much higher than those from other biodiesel crops such as soy, palm and rapeseed / canola.
• Microalgae are capable of fixing CO2 in the atmosphere, thus facilitating the reduction of increasing atmospheric CO2 levels, now considered a global problem.
• Algae biofuel is non‐toxic, contains no sulfur, and is highly biodegradable. Oilgae ‐ Home of Algae Energy‐www.oilgae.com
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Algae, because of their growth rate and yields, could produce a lot more oil than other energy crops. Some estimates suggest that microalgae are capable of producing up to 50,000 litres of oil per hectare a year. This could be converted into biodiesel by conventional processes and be used to fuel vehicles from jets to tractors.
In contrast to microalgae, macroalgae produce only small amounts of lipid, which function mainly as structural components of the cell membranes, and produce carbohydrate for use as their primary energy storage component. Many microalgae (microscopic, photosynthetic organisms that live in saline or freshwater environments) produce lipids as the primary storage molecule.
While microalgae strains that are rich in oil content can be used for producing biodiesel, other strains of microalgae and macroalgae can also be used as energy feedstock. Fuels such as ethanol, methane, hydrogen and other hydrocarbon fuels can be derived from these, through a variety of processes.
1.2 Energy Products from Algae Biomass
The harvested algae biomass can be converted into a range of products.
1. Biodiesel 2. Ethanol 3. Methane 4. Hydrogen 5. Other Hydrocarbons
The most important of the above is biodiesel.
1.2.1 Biodiesel from Algae
Biodiesel refers to any diesel‐equivalent biofuel made from renewable biological materials such as vegetable oils, animal fats or from other biomass such as algae.
Biodiesel is usually produced by a chemical reaction (called Transesterification) in which vegetable or waste oil is reacted with a low molecular weight alcohol, such as ethanol and methanol.
Biodiesel is quite similar to fossil diesel fuel, but there are some notable differences. While the petroleum and other fossil fuels contain sulfur, ring molecules & aromatics, the biodiesel molecules are very simple hydrocarbon chains, containing no sulfur, ring molecules or aromatics. Biodiesel is made up of almost 10% oxygen, making it a naturally "oxygenated" fuel.
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Bio‐diesel can be used in diesel engines either as a standalone fuel, or it can be blended with petro diesel. Much of the world uses a system known as the "B" factor to state the amount of biodiesel in any fuel mix. For example, fuel containing 20% biodiesel is labeled B20. Pure biodiesel is referred to as B100.
Oil Yields from Algae
One of the key reasons algae are considered as feedstock for oil is their high yields. Put simply, algae are the only bio‐feedstock that can theoretically replace all of our current and future petro‐fuel consumption. Owing to the fact that oil yields are much lower for other feedstock when compared to those from algae, it will be very difficult for the first generation biodiesel feedstock such as soy or palm to produce enough oil to replace even a small fraction of petro‐ oil needs without displacing large percentages of arable land meant for food crops.
There are a number of reasons why yields from algae are much higher than those from other oil crops. Most important among them are their rates of growth and high photosynthetic efficiencies.
High rates of growth ‐ Algae have the unique ability to double its biomass on a daily basis and can therefore be harvested as such. There are more than 100,000 strains of algae, with some being better suited to the production of biofuels than others. Most of these organisms can double in number every 12 to 24 hours. On the other hand, crops such as soybeans and corn are harvested just once or twice a year.
High photosynthetic efficiencies – The photosynthetic efficiency is the fraction of light energy converted into other forms of energy. Most plants and trees convert light into chemical energy through photosynthesis with an efficiency of approximately 0.2‐0.5%; for most plants, the photosynthetic efficiency is much less than 1%. Algae have photosynthetic efficiencies of over 6%.
Comparison of Yields from Algae with Other Oil Crops
Cereals contain only about 2% oil by weight, compared to oilseeds that contain much higher levels. The oil content of oilseeds varies widely from one type to the other. It is about 20% in soybeans and as high as 50% in some new Australian varieties of canola. Sunflower has one of the highest oil contents among oilseeds – about 55%.
The table below shows the percentage dry weight of oil content in various crops:
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Oil Content % ‐ Crop Average Values Soy 20 Canola / Rapeseed 40 Sunflower 55 Safflower 40 Castor 45 Hemp 30 Copra (Dry Coconut) 60 Peanuts / Groundnuts 50 Palm Kernel 50 Corn 7 Mustard 40 Flaxseed 45 Jatropha Seed 40 Jatropha Kernel 55 Algae 2 to 40
Algae have lipid content varying from 2%‐40%, based on the strain. On this dimension (% oil content), there is nothing extra‐ordinary about algae – in fact, algae’s oil content by weight on average is not much higher than that for many other oil crops.
Algae score over all other oil crops in the amount of oil yield per acre.
The following table gives some typical yields in US gallons of biodiesel per acre
Plant Biodiesel Yield (Gal per acre) Algae 5000 and higher Chinese Tallow 500‐1000 Palm Oil 500 Coconut 230 Rapeseed 100 Soy 60‐100 Peanut 90 Sunflower 80‐100
The reasons for the much higher algae oil yields have been mentioned in the earlier section.
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From the above table, it can be seen that algae have almost 10 times oil & biodiesel yield as palm or Chinese Tallow, and over 50 times the yield as soy. This means that one needs to use 10% of the total land area for algae cultivation for similar oil yields as for palm, and just 2% of land area when compared to soy.
In 2010, the world uses about 1300 billion gallons of liquid fuels per year (primarily in the form of gasoline and diesel, source: Estimated based on data from Department of Energy, Gov of USA). Algae produce about 12500 gallons per hectare (5000 gal per acre). A simple calculation shows that in order for algae biodiesel to completely replace all transportation fuels, it will require about 80 million hectares of land.
According to the Food & Agricultural Organization, the world has 610 million hectares of unforested marginal land. The total global area of degraded land, defined as formerly forested tropical lands not currently used for agriculture or other purposes, is 500 million hectares. Current abandoned agricultural land could be 386 million hectares globally. That is, about 1.5 billion hectares of non‐forested land is available worldwide that is not being used for agriculture. Algae require just 80 million of these (less than 5%), which sounds do‐able. Crops such as palm would require close to a billion hectares for the same result, a daunting and almost impossible task.
Current Methods of Oil Extraction
Algae oils are extracted using two different methods. These can be categorized as mechanical and chemical.
• Mechanical – Using Oil Expeller/Oil Press • Using Chemical Solvents o Hexane Solvent Oil Extraction o Supercritical Fluid Extraction
Summary of Extraction Processes
Pressing Oil from Algae Using Expeller Press
• The process involves simple drying of algae and pressing of oil • Expeller press can retrieve up to 70% of the oil • This method is economical and simple
Chemical ‐ Solvent Extraction
• This process involves using hexane solvents to remove the oil • Removes almost all the oil • More expensive than expeller press • Hexane is a neurotoxin, so care must be taken while using this process
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Chemical ‐ Super Critical Oil Extraction
• This is a very efficient method • The process uses carbon dioxide at critical pressure and temperature (when CO2 is almost a liquid) • This is a very expensive method
Converting Algae Oil into Biodiesel
Concepts
The major problem associated with the use of pure vegetable oils and oil from biodiesel as fuels for diesel engines is caused by high fuel viscosity in compression ignition. Algal oil, like other vegetable oils, is highly viscous, with viscosities ranging 10–20 times those of diesel fuel.
Chemical conversion of the oil to its corresponding fatty ester is a solution to the high viscosity problem. This process – chemical conversion of the oil to its corresponding fatty ester, and thus biodiesel – is called transesterification.
Transesterification
Transesterification refers to a reaction between an ester of one alcohol and a second alcohol to form an ester of the second alcohol and an alcohol from the original ester. An example is a reaction of methyl acetate and ethyl alcohol to form ethyl acetate and methyl alcohol.
Chemically, transesterification means taking a triglyceride molecule or a complex fatty acid, neutralizing the free fatty acids, removing the glycerin and creating an alcohol ester. This is accomplished by mixing methanol with sodium hydroxide to make sodium methoxide. Thus, with sodium ethanolate as the catalyst; ethanol is reacted with the algal oil (the triglyceride) to produce bio‐diesel & glycerol. The end products of this reaction are hence biodiesel, sodium ethanolate and glycerol. Glycerol is one of the key chemicals that make the oil thick. During transesterification, glycerol is removed from the oil to make it thinner ‐ that is, to reduce its viscosity.
This mixture at the end of the reaction is separated as follows: Ether and salt water are added to the mixture and mixed well. After sometime, the entire mixture would have separated into two layers, with the bottom layer containing a mixture of ether and biodiesel. This layer is separated. Biodiesel is in turn separated from ether by a vaporizer under a high vacuum. As the ether vaporizes first, the biodiesel will remain. This liquid is then mixed into vegetable oil. The entire mixture then settles. Glycerin is left on the bottom and methyl esters, or biodiesel, is left on top.
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The glycerin can be used to make soap (or any one of many other products) and the methyl ester is washed and filtered.
1.2.2 Ethanol from Algae
Ethanol is a clean‐burning, high‐octane fuel that is produced from renewable sources. Because ethanol can be produced domestically in most countries, it helps reduce dependence upon foreign sources of energy for these countries.
Ethanol is a very high octane fuel, replacing lead as an octane enhancer in gasoline. Pure, 100% ethanol is not generally used as a motor fuel; instead, a percentage of ethanol is combined with unleaded gasoline. This is beneficial because ethanol decreases the fuel's cost, increases the fuel's octane rating, and decreases gasoline's harmful emissions.
Algae have a tendency to have a much different makeup than do most feedstock used in ethanol, such as corn and sugar cane. There are some topics and challenges that would need to be addressed, such as (1) Yeast matching to feedstock sugars (determining the specific yeast that can be used for fermenting the sugars in algae), (2) Sugar extraction (extraction of sugars from the biomass leaving out the residue), and (3) High ash feedstock (algae could contain a significant percentage of inorganic materials that cannot be converted to energy). But overall, there is a distinct possibility that algae could be a good feedstock for ethanol.
Ethanol from algae is possible by converting the starch (the storage component) and cellulose (the cell wall component). Put simply, the lipids in algae can be converted into biodiesel, while the carbohydrates (such as starch, cellulose) can be converted to ethanol.
Algae could be an ideal source for second generation bio‐ethanol because some species are high in carbohydrates/polysaccharides and have thin cellulose walls.
The methods of ethanol production from algae are:
1. Through fermentation of algal biomass – High starch algae can be fermented similar to fermentation of other starch‐based feedstock such as corn.
2. Through fermentation of syngas produced by algal biomass gasification – When algal biomass is gasified, the result is a mixture called syngas, which predominantly comprises H2 & CO. This gas can be further fermented to produce ethanol.
3. Through catalytic synthesis of syngas produced by algal biomass gasification – It is also possible to produce ethanol from a catalytic synthesis of syngas that results from biomass gasification
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1.2.3 Methane
Methane is a simple hydrocarbon, and the principal component of natural gas. Methane can be used for electricity generation by being burnt in a gas turbine or steam boiler. Compared to other hydrocarbon fuels, burning methane produces less carbon dioxide for each unit of heat released. Methane in the form of compressed natural gas is used as a vehicle fuel, and is claimed to be more environmentally friendly than fossil fuels such as gasoline/petrol and diesel.
In some ways, it can be said that the simplest approach to produce energy from algae is by producing methane gas, because both the biological and thermal processes involved are not very sensitive to what form the biomass is in. Theoretically, methane can be produced from any of the three constituents of algae – carbohydrates, proteins and fats.
The methods of methane production from algae are:
1. Through Anaerobic Digestion ‐ Anaerobic digestion is a series of processes in which microorganisms break down biodegradable material in the absence of oxygen. It is widely used to treat wastewater sludges and organic wastes; this process can also be used to produce methane from algae
2. Through Pyrolysis or Gasification – Syngas, which is a result of gasification of algae biomass, can be converted to methane through a process termed methanation.
1.2.4 Hydrogen
Hydrogen is not an energy source, but is a carrier of energy. Hydrogen currently finds applications in specific industry segments, though none of these is directly for energy use.
The methods of hydrogen production from algae are:
1. Through Biochemical Processes ‐ Under specific conditions, algae produce hydrogen, via biological and photobiological processes. Under these conditions, enzymes in the cell act as catalysts to split the water molecules.
2. Through Gasification – Gasifying biomass gives syngas, a mixture of CO and H2. A number of methods are being researched to separate the H2 from syngas.
3. Through Steam Reformation of Methane – Fermentation of algal biomass produces methane. The traditional steam reformation (SMR) techniques can be used to derive hydrogen from methane.
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1.2.5 Other Hydrocarbons
Algae biomass comprises hydrocarbons which can theoretically be transformed into a number of hydrocarbon fuels of varying compositions and properties. For instance, a study of oil which was obtained from hydrocracking of the Botryococcus braunii (a popular strain of algae) found that the distillate comprised 67% gasoline fraction, 15% aviation turbine fuel, 15% diesel fuel fraction and 3% residual oil.
Research is in its nascent stages regarding the different types of hydrocarbon fractions (other than diesel) that can be derived from algal biomass in an economically sustainable way.
• JP‐8 Fuel (Aviation Fuel) / Kerosene • Gasoline • Butanol • LPG • Waxes • Lubricants • Polymers and Plastics
Most of the above products can be produced through what are called thermochemical processes. These processes typically comprise a gasification stage during which the biomass is transformed into a gaseous hydrocarbon, and a chemical synthesis stage during which the gas is transformed into the desired hydrocarbon through chemical reactions.
1.2.6 Companies & End‐products
The following is the list of end‐products from the various companies in the algae energy domain. This list is tentative as product profiles for companies change quite frequently in this fast evolving industry.
List of Algae Energy Companies and Proposed End‐Products
Company Proposed End Products A2BE Carbon Capture Biodiesel & Ethanol Algenol Ethanol Aurora Biofuels Biodiesel Aquaflow Bionomics Biodiesel, Aviation fuel BlueMarble Energy Biofuels (Biogas) & Chemicals Carbon Capture Corp Biodiesel, Butanol, Biomethane, JP‐8 CEHMM Biodiesel Community Fuels Biodiesel Exxon Mobil/Synthetic Biodiesel and Ethanol*
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Genomics Green Star Products Biodiesel GreenShift Biodiesel & Ethanol Inventure Biodiesel, Ethanol, Specialty Chemicals Kai Bioenergy Biodiesel OilFox Argentina Biodiesel Organic Fuels Biodiesel Origin Oil Biodiesel PetroAlgae Biofuels & Bioplastics PetroSun Biodiesel, Ethanol, Jet Fuel & Bioplastics Renewable Energy Group Biodiesel Revolution Biofuels Biodiesel Sapphire Energy High Octane Gasolien Seambiotic Ethanol, Biodiesel, High‐value Chemicals Biodiesel, Ethanol, Specialty Chemicals, Solazyme Jet Fuel Solix Biofuels Biodiesel SunEco Energy Biodiesel Targeted Growth Biodiesel Valcent Ethanol, Biodiesel & Jet Fuels
*: Not explicitly stated, inferred
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Paths to the Various Energy Products from Algae
Extraction Algal Biomass
Fermentation
Anaerobic Digestion Gasification
Methanation Methanol Syngas
Catalytic Synthesis Fermentation Methane
IGCC/ IC /Fuel cell Ethanol
Biophotolysis Ethylene Acetic Formal Methyl DME Hydrogen Acid dehyd Acetate
Combustion / Gasification / Electricity pyrolysis
Algal Oil Fischer Tropsch
Transesterification Gasoline Wax Naphtha Kerosene Diesel
1.3 Algae to Energy Processes
Whatever be the energy end‐product, the following are the common processes:
1) Strain selection 2) Algaculture – Algae cultivation / growth 3) Harvesting
Note: • In the case of biodiesel, the other two processes are extraction, and conversion of the extracted oil to biodiesel
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• In cases where gasification, fermentation or anaerobic digestion of biomass is attempted, the above oil extraction step is not needed; in these cases, the algae biomass can be used for conversion without the oil extraction stage.
1.3.1 Strain Selection & Its Importance
It is estimated that there are over 100,000 different strains of microalgae alone. While such a large number might indicate exceptional potential for energy production from algae, in reality, only a small percentage of these could be used to derive energy in an economically sustainable manner. There are a number of reasons for this. What such a fact indicates, however, is that it is critical that the most suitable strain is chosen for a specific type of culture medium and for a desired type of energy end‐product.
For instance, if the end‐product is biodiesel, it is crucial that you identify reliable algal strains that are capable of producing high levels of algae oil as well as being resistant to contamination, adaptable to temperature extremes, tolerant of high oxygen levels and suited to local water conditions in growth ponds.
In sum:
(a) Selecting the right strain is of critical importance in making oil from algae economically viable and sustainable
(b) It is likely that considerable resources need to be dedicated to the algal strain selection exercise. Algae strain selection is a far more involved exercise that it would appear at first glance. In many cases, algal strains will need to be collected from native environments, rather than just from culture collections. This alone could require considerable work. In addition, comprehensive screening tools are needed to be developed to identify algae with desired characteristics. There may be many such characteristics researched, for instance: • Fitness for mass cultivation in open ponds • High oil content • High productivity in mass cultivation • Reducing susceptibility to competing algae, grazers, and diseases • Ability to be harvested by low‐cost methods • Potential for additional valuable co‐products
1.3.2 Algaculture
Like plants, algae require three components to grow: sunlight, carbon‐di‐oxide & water. Like plants again, they use the sunlight for the process of photosynthesis. Photosynthesis is an important biochemical process in which plants, algae, and some bacteria convert the energy of sunlight to chemical energy. This chemical energy is used to drive chemical reactions such as the formation of sugars or the fixation of nitrogen into amino acids, the building blocks for protein synthesis. Algae capture light energy through photosynthesis and convert inorganic
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substances into simple sugars using the captured energy. Plant leaves take in carbon from the carbon dioxide (CO2) in the atmosphere, but algae need carbon in the water. Algae grow so quickly that atmospheric CO2 cannot penetrate the water fast enough to sustain growth, so carbon must be added for quick growth.
Thus, algae cultivation is an environmentally friendly process for the production of organic material by photosynthesis from carbon dioxide and light energy. The water used by algae can be of low quality, including industrial process water, effluent of biological water treatment or other waste water streams.
Culturing algae requires the input of light as an energy source for photosynthesis and a sufficient supply of nutrients in dissolved form in the culture medium. In particular, these are: carbon in the form of CO2, water, nitrogen, phosphate and other nutrients including sulphur, potassium, magnesium and trace elements.
Two types of algae culture systems are in use – ponds and photobioreactors. Ponds could comprise open systems or closed ponds. The closed photobioreactor systems usually take the form of upright or horizontal tube or panel systems.
The open systems, for increased efficiency, are generally designed as a continuous culture in which a fixed supply of culture medium or influent ensures constant dilution of the system. The organisms adapt their growth rate to this dilution regime, the organism best adapted to the environment prevailing in the system winning the competition with the other organisms.
A drawback of the common open algae culture systems is the major risk of infection by undesirable photosynthetic micro‐organisms which can be introduced via air or rain. Such infections can be prevented only by choosing a culture medium which is unfavorable for infectious and other undesirable micro‐organisms and favorable to the growth of the desired alga species, so that the latter can win the competition. In a limited number of cases this is possible.
An alternative to these problems could be to carry out algae cultivation in closed photobioreactors. In these, the process conditions can be accurately controlled, and no infection carrying alga species will occur. A major drawback of the closed photobioreactors is the high investment costs which lead to high production costs.
Comparison of Open Pond and Photobioreactor
Various Parameters Showing the Relativity between Open Ponds Vs Closed Bioreactors Source : NREL Parameter Relative Notes Contamination risk Ponds > PBRs Much reduced for PBRs Space required Ponds ~ PBRs A matter of productivity Productivity Ponds < PBRs PBRs 3‐5 times more productive
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Water losses Ponds ~ PBRs Depends upon cooling design CO2 losses Ponds ~ PBRs Depends on pH, alkalinity, etc... O2 Inhibition Ponds < PBRs O2 greater problem in PBRs Process Control Ponds < PBRs Very important in PBRs Biomass concentration Ponds < PBRs 3‐5 times in PBRs Capital/Operating costs ponds Ponds << PBRs Ponds 3‐10 × lower cost!
Thus, cultivating algae for fuel is an area where more experimentation and research are still required.
1.3.3 Harvesting
Unlike for many other energy crops, the cost of harvesting algae could present a significant challenge to economic energy production from algae.
The reasons lie in the differences present between harvesting algae and other energy crops:
• The medium in which alga grows is different – the other oilseeds are land crops while algae grow in water • Microalgae’s physical characteristics are significantly different from those of the primary oilseeds, the main difference being the size. • Algae are harvested almost everyday, for most part or all through the year, whereas harvesting for most oilseeds is quite seasonal in nature
Owing to these reasons, harvesting algae, especially microalgae, could be a fairly expensive process. A number of methods could be potentially used for harvesting.
Methods of Harvesting
The ease in harvesting the algae depends primarily on the organism's size, which determines how easily the species can be settled and filtered. The most rapidly growing algal species are frequently very small, and often motile unicells, and these are the most difficult to harvest. Thus, it is necessary to maintain an effective interaction between the development of harvesting technologies and the selection of algal species for mass culture.
The main types of harvesting methods are:
• Filtration ‐ Mechanical harvesting using filtration, by means of strong membranes, such as microscreens. • Chemical Methods ‐ Chemical and/or biological harvesting by means of flocculants. • Centrifugation ‐ Algae can also be harvested using centrifugation. • Flotation ‐ Another method is froth flotation, whereby the water and algae are aerated into froth, with the algae then removed from the water.
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1.3.4 Oil Extraction
Explained under the section 1.2.1
1.3.5 Conversion of Oil to Biodiesel
Explained under the section 1.2.1
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2. Size & Scope of the Algae Business Opportunity
2.1 Energy Industry Payoffs 2.1.1 Global Energy Industry 2.1.2 Oil ‐ Big Challenges & Big Payoffs 2.2 Applications & Uses for Algae 2.2.1 Fuel Applications of Algae 2.2.1.1 Biodiesel 2.2.1.2 Ethanol 2.2.1.3 Hydrogen 2.2.1.4 Methane 2.2.1.5 Hydrocarbons 2.2.2 Non‐fuel Applications 2.2.2.1 Bioremediation 2.2.2.2 Other Non‐fuel Applications 2.3 Industries with Synergistic Benefits from the Algae Energy Opportunities 2.4 Wide Range of Business Opportunities
2.1 Energy Industry Payoffs
2.1.1 Global Energy Industry
Energy is the largest industry in the world. Estimates of the total market size of all sectors of the energy and related industries is about $7.5 trillion (this includes gasoline, diesel, and other liquid fuels, natural gas, coal and allied industries upstream and downstream) – of this, oil alone constitutes about $ 3.25 trillion (using Mar 2011 oil prices).
The energy industry thus constitutes almost 12% of the total world GDP of $62 trillion (2010 data, source: CIA).
2.1.2 Oil ‐ Big Challenges & Big Payoffs
Deriving energy from algae presents a number of challenges. At the same time, the pay‐offs for those who are willing to make efforts to overcome the challenges are huge as well – they get a chance to be a significant contributor to the global energy industry in the post‐oil world.
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Revenues of Top 5 Oil Companies (2010, US$ billion)1
Revenues 2010 Company (US$ billion) Royal Dutch/Shell 285.1 ExxonMobil 284.7 BP 246.1 Chevron 163.5 ConocoPhillips 155.9
In total, the revenues of the top 5 oil companies in the world alone totaled an incredible $1.135 trillion, which is more than the GDP of most countries in the world ‐ except the top 12 countries! (In 2010, Mexico, the 14th largest country by GDP, had a nominal GDP of 1.02 trillion US$)
The above total shows the payoff that awaits companies that are able to do well in deriving energy from algae. As algae are possibly the only feedstock which have a possibility of completely replacing fossil transportation fuels, companies that succeed in getting oil and energy from algae in sustainable and cost effective ways have a chance to become the big oil companies of the future.
While producing transportation fuels from algae offers one of the largest and most exciting business opportunities, there are other opportunities in the algae energy business ecosystem which will be suitable for businesses and entrepreneurs keen on operating on a lower scale or with different business models.
2.2 Applications & Uses of Algae
Algae have been long used for a number of non fuel applications and products. These include its use in animal feed, nutraceuticals, cosmetics and more.
Algae also present an interesting opportunity as a bioremediation agent – algae can be used to sequester CO2 from power plants, and they can be used to remove nutrients from waste water and sewage.
The recent explorations into use of algae for fuel add yet another dimension for its application.
The tables below provide a snapshot of the range of products that can be derived from algae, their price‐points, and some prominent suppliers.
1 Source: http://money.cnn.com/magazines/fortune/global500/2009/snapshots/6388.html
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Sample of Products from Microalgae2
Product Microalgae Price (USD) b‐Carotene Dunaliella 300–3000/kg Astaxanthin Haematococcus 10,000/kg Spirulina Whole‐cell dietary Chlorella 50/kg supplements Chlamydomonas Tetraselmis Nanochloropsis 1‐10/Kg Isochrysis Fish feed and animal feed Nitzschia
Polyunsaturated fatty Crypthecodinium 60,000/kg acids Schizochytrium N/A Pharmaceutical proteins Chlamydomonas Botryococcus Chlamydomonas Chlorella N/A Dunaliella Biofuels Neochloris
Apart from the above, some very unique products that can be derived from microalgae, such as heavy isotope labeled metabolites and Phycoerythrin (from Red algae and cyanobacteria) used as fluorescent labels could have values far exceeding $10,000 per kg.
Prominent Producers of Microalgae Products
Product Prominent Producers AquaCarotene (USA) Cognis Nutrition & Health (Australia) Cyanotech (Hawaii, USA) b‐Carotene Nikken Sohonsha Corporation (Japan) Tianjin Lantai Biotechnology (China) Parry Pharmaceuticals (India)
2 Source: Department of Chemical & Biomolecular Engineering, The Johns Hopkins University 2008
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AlgaTechnologies (Israel) Bioreal (Hawaii, USA) Astaxanthin Cyanotech (Hawaii, USA) Mera Pharmaceuticals (USA) Parry Pharmaceuticals (India) BlueBiotech International GmbH (Germany) Whole‐cell dietary Cyanotech (USA) supplements Earthrise Nutritionals (California, USA) Phycotransgenics (USA) Aquatic Eco‐Systems (USA) Whole‐cell BlueBiotech International GmbH (Germany) aquaculture feed Coastal BioMarine (USA) Reed Mariculture (USA) BlueBiotech International GmbH (Germany) Polyunsaturated Spectra Stable Isotopes (USA) fatty acids Martek Biosciences (USA) Heavy isotope labeled metabolites Spectra Stable Isotopes (USA) Phycoerythrin BlueBiotech International GmbH (Germany) (fluorescent label) Cyanotech (USA) Anticancer drugs PharmaMar (Spain) Pharmaceutical proteins Rincon Pharmaceuticals (USA) Cellana (USA) GreenFuel Technologies (USA) LiveFuels, Inc. (USA) Biofuels PetroAlgae (USA) Sapphire Energy (USA) Solazyme, Inc. (USA) Solix Biofuels (USA)
We discuss the size and scope of various applications of algae in two categories
1. Fuel 2. Non – fuel
2.2.1 Fuel Applications of Algae
In theory, biomass such as algae has the potential to provide energy for all the three major energy needs – transportation, electricity, and heating; however, the most likely use of biomass in the near and medium terms will be primarily for transportation fuels.
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While it is well‐known that ethanol and biodiesel can be derived from biomass (ethanol from starch‐high biomass, and biodiesel from biomass high in lipids), what is not well‐known is that a range of other fuels (and even polymers, plastics and other specialty chemicals) can be derived from most biomass. The same is true of algal biomass as well.
Of these, biodiesel and to a certain extent ethanol are the products which most companies are attempting, but these are early days and it is not entirely certain that biodiesel or ethanol are the optimal energy products from algae.
The following is the complete list of energy products that can be derived from algae:
• Biodiesel • Ethanol • Hydrogen • Methane • Other hydrocarbon fuel variants, such as JP‐8 fuel, gasoline, biobutanol etc.
The scope of applications and the current and potential market sizes for the above energy products are already significant, and are expected to be much larger in future.
2.2.1.1 Biodiesel
Growth of Biodiesel
Overall, worldwide production of biodiesel was about 13 million T in 2008, up 45% from 9 million tonnes in 2007. Global production of biodiesel, starting from a much smaller base than ethanol, expanded nearly fourfold between 2000 and 2005 and rose sharply in 2006, and has since continued its growth. Growing at the rate of more than 20% from the year 2006, world biodiesel production is likely to be about 18 billion T by the end of 2010.
Europe leads the world in biodiesel production, with a share of over 55% in 2008. North America and Asia each have about 20% share.
While global production of biodiesel was 13 million T in 2008, it was less than 0.3% of the total worldwide consumption of fossil fuels by the transportation sector!
First, Second and Third Generation Biodiesel Feedstock
Feedstock such as soybeans, palm, canola and rapeseed are considered first generation feedstock for biodiesel production, as they were the first crops to be tried for biodiesel. Most first generation biodiesel feedstock could be used alternatively to make food for humans as well.
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While the first generation feedstock helped the biodiesel industry start off the blocks, they posed serious challenges.
• Threat to human food chain – Most first generation feedstock had hitherto been used for food. For instance, palm and soy were oil crops whose oils were a vital part of human food. By diverting these food crops to produce oil, the world suddenly faced a food vs. fuel crisis.
• Threat to environment – Given their yields of oil, very large portions of land were needed to cultivate the first generation biodiesel crops in order for them to make a significant contribution to the world’s fuel demand. Such a necessity resulted in countries around the world cutting down forests in order to plant these crops. This started creating serious ecological imbalances.
Non‐food bio‐feedstocks are considered as feedstock for second generation biodiesel. Energy crops such as jatropha represent the second generation biodiesel feedstock. In addition, using technologies such as biomass to liquid (BTL), many other non‐food crops could be converted to biodiesel. These feedstocks have the advantage of not affecting the human food chain by them being diverted to make fuel.
While feedstock belonging to the second generation do not typically affect the human food chain and can be grown in marginal and wastelands, this feedstock might still not be abundant enough to replace more than 20‐25% of our total transportation fuels. In addition, in cases such as cellulosic ethanol (which can be blended with gasoline and is derived from non‐food biomass) the cost of production of biofuels from this feedstock is high owing to the inefficiencies in the currently employed processes.
Algae are considered to belong to the third generation of biodiesel feedstock. These feedstock offer superior yields when compared to second generation feedstock while at the same time not directly affecting the human food chain. In addition, crops such as algae can be grown in places that are not suitable for agriculture, thus providing superior overall ecological performances as well.
2.2.1.2 Ethanol
Ethanol is beginning to be used all around the world as a transportation fuel, and it has some distinct advantages.
Fuels that burn too quickly make the engine "knock". The higher the octane rating, the slower the fuel burns, and the less likely the engine will knock. When ethanol is blended with gasoline, the octane rating of the petrol goes up by three full points, without using harmful additives.
Adding ethanol to gasoline "oxygenates" the fuel. It adds oxygen to the fuel mixture so that it burns more completely and reduces polluting emissions such as carbon monoxide.
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Any amount of ethanol can be combined with gasoline, but the most common blends are:
• E10 ‐ 10% ethanol and 90% unleaded gasoline. E10 is approved for use in any make or model of vehicle.
• E85 ‐ 85% ethanol and 15% unleaded gasoline. E85 is an alternative fuel for use in flexible fuel vehicles (FFVs). There are currently millions of FFVs on roads today (over 6 million in the US alone).
It is important to note that it does not take a special vehicle to run on "ethanol". All vehicles can use E10 with no modifications to the engine. E85 is for use in a flexible fuel vehicle.
Annual World Ethanol Production by Country (Millions of Gallons)3
Country 2004 2005 2006 2007 2008 United States 3,535 4,264 4,855 6,499 9,000 Brazil 3,989 4,227 4,491 5,019 6,472 China 964 1,004 1,017 486 502 India 462 449 502 52.8 66 Canada 61 61 153 211 238 Thailand 74 79 93 79.2 90 Australia 33 33 39 26 26 Total 9,118 10,117 11,150 12,373 16,394
For 2008, global ethanol production was 16.4 billion gallons while for 2009, the world annual fuel ethanol production was 19.2 billion gallons. The global ethanol production is expected to reach 26 billion gallons by 2014, growing at a CAGR of over 8% for the period 2008‐2014, and 34 billion gallons by 2018, a CAGR of about 7%
2.2.1.3 Hydrogen
There is a school of thought that hydrogen could become a major automobile fuel in future with its use in fuel cells. There are however significant obstacles along the way for that to happen.
• Hydrogen – current uses o Fertilizer ‐ Hydrogen is important in creating ammonia (NH3) for use in making fertilizer o Petroleum ‐ Hydrogen gas is used in the processing of petroleum products to break down crude oil into fuel oil, gasoline and such
3 Source: F.O. Licht
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o Food and fat ‐ Hydrogen gas is used as a hydrogenating agent for polyunsaturated fats, such as margarine. o Others – Hydrogen is also used in the manufacture of some specialty chemicals, and in some processes in metals industry that require high heat.
Hydrogen Current Market Size & Growth4
Metals Fab. Ammonia Chemical Food & Refineries & Production Mfr’g Personal Care Treatment $ 15.5 Size $ 17 billion billion >$0.5 billion $ 1 billion >$0.5 billion Growth (in CAGR) 1.5 % 10 % 5% 1.5% 5% Sulfur High Heat Specialty Hydrogenatin Key uses Fertilizer Removal Processes Chemicals g Oils
• Hydrogen ‐ future uses o Fuel cells o Stationary power and emergency back‐up systems o Portable power o Hydrogen vehicles o Hydrogen use by utilities to produce electricity on demand.
2.2.1.4 Methane
Methane has the potential to be a significant contributor to the world’s fuel needs.
The main fuel applications of methane currently are:
• In the form of compressed natural gas used in vehicles, methane is claimed to be more environmentally friendly than fossil fuels such as gasoline and diesel. • Electricity generation by burning it as a fuel in a gas turbine or steam boiler. Compared to other hydrocarbon fuels, burning methane produces less carbon dioxide for each unit of heat released. • LNG ‐ Delivery of captured methane into a pipeline system or simple conversion to Liquefied Natural Gas (LNG). Gas pipelines distribute large amounts of natural gas, of which methane is the principal component. • Other direct uses consist of heating (e.g., furnaces, kilns, engines, space heaters) for various commercial and industrial uses, greenhouses, onsite leachate evaporation systems, and cooling (e.g., chillers, air conditioning).
4 Source: www.hyways.de , Oct 2006
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• It is popular as biogas in many parts of the world, where it is used for domestic heating and cooking purposes. In industries, it is also used for generation of hot water or steam from boilers (onsite and offsite)
Other current & possible future applications:
• Methane is a potential rocket fuel. • Feedstock for the production of hydrogen, methanol, acetic acid, and acetic anhydride. • For producing carbon dioxide gas • For producing carbon black used in rubber industries • For producing other organic compounds like methyl chloride, methylene dichloride, chloroform, etc.
Methane Market Size
In the form of biogas alone, methane production & use is about 355,000 Terajoules worldwide. This corresponds to about 10,000 GWh equivalent of electricity (10 TWh). For comparison, the total power generated globally was about 20200 TWh in 2010 (Source: IPCC).
The adoption of compressed natural gas (which is composed primarily of methane) in vehicles is growing fast. From a vehicle base of about 1 million in 1996, the total number of CNG powered vehicles grew to over 5 million worldwide by 2006 (Source: OES Australia), 7 million by 2008 (Source: John Lyon "65 Million NGVs by 2020 ‐ IANGV Projection". International Association of Natural Gas Vehicles, Apr 2008), and by 2009, there were more than 9.5 million CNG equipped vehicles on the road. (Source: International Association of Natural Gas vehicles, March 2009)
The total world consumption of natural gas (2007) was 3.2 trillion cu.m, of which LNG comprised about 4%.
2.2.1.5 Other Hydrocarbons
There is a range of hydrocarbon fuels in use today, in a number of domestic and industrial segments. Many of these have sizable markets worldwide. Currently, almost the entire production of these hydrocarbons comes from fossil fuels. Biomass such as algae could provide the feedstock for these fuels in future.
2.2.2 Non‐fuel Applications
While efforts at using algae for making biofuels are fairly recent, algae have been used in a number of industries, and to make many different products, for a long time. The diverse list of applications for algae make them more attractive as biofuel feedstock because entrepreneurs can configure their businesses in such as way that they can benefit from the use of their feedstock for more than just the fuels/energy market alone.
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In fact, biofuels are the lowest value products that can be derived from algae.
The following table will provide some idea of the products that can be derived from algae and their values
Product Product Value Approx Price Range ($/Kg) Biofuels Low < 1 Proteins (for animal feed) Low‐medium 1.5 Fine chemicals / food Medium‐high 15 ingredients Ingredients for High‐very high 150 and higher pharmaceuticals and cosmetics
Biofuels from algae represent a low‐value product category. However, it is possible to derive both this low‐value product and higher value products from the same algae biomass.
For instance, biofuels can be derived from the algae left over after using the biomass for deriving chemicals or pharma ingredients. This application has been used for years for a wide array of products in cosmetics and pharmaceuticals. After the algal biomass is fractionated, the remaining cellulosic material and sugars make a great feedstock, whole or blended with other feedstock, for the production of cellulosic ethanol.
Market Sizes of Non‐fuel Algae Products
The market size of products from micro‐algae was estimated by Pulz and Gross (2004) to have a retail value of US$ 5 – 6.5 billion. • US$ 1.25 ‐ 2.5 billion were generated by the health food sector • US$ 1.5 billion from the production of docosahexanoic acid (DHA) and • US$ 700 million from aquaculture.
Another study mentions a production of 10,000 T per year, almost all of it grown in open ponds, and mainly for use as nutritional supplements (Van Harmelen and Oonk 2006).
The world market of products from macro‐algae has been estimated to have a size of some US$ 5.5 ‐ 6 billion per year (McHugh 2003; Pulz and Gross 2004). • US$ 5 billion is generated by the food industry, of which US$ 1 billion is from “nori”, a high‐value product worth US$ 16,000 / T • US$ 600 million was generated by hydrocolloids (55,000 T) extracted from cell walls of macroalgae
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Based on suitable assumptions market growth rates, Oilgae estimates the following*:
All data in $ billion
Total market size for all microalgae products in 2010 8.5 Total market size for all macroalgae products in 2010 7.5
*: assumes a CAGR of 8% for microalgae products and 5% for macroalgae products, for the period 2004‐2010
The non fuel applications of algae can be categorized under the following headings:
• Bioremediation • Other Non Fuel Applications
2.2.2.1 Bioremediation
CO2 Sequestration
Algae + CO2 Emissions = Carbon Credits + Biofuels!
CO2 sequestration refers to the process of isolating and storing CO2, a greenhouse gas.
Coal is ‐ and will remain – one of the predominant fuel sources for power generation purposes in the world for the foreseeable future. Typical coal‐fired power plants emit flue gas from their stacks containing up to 13% CO2
It is estimated that power plants produce about 40% of all greenhouse gases worldwide. It is incumbent on us not only to build new coal plants using technology which limits or eliminates greenhouse gas emissions but also to find the best way to retrofit the country's existing fleet of coal plants for post‐combustion carbon capture.
The conventional CO2 sequestration processes are highly power intensive and as a result, expensive. In a country like the U.S., where coal is the major fuel for power production, costs involved in sequestering CO2 emissions will run into several billions. By employing tactics similar to those designed by nature, companies believe they can lock up carbon dioxide emissions through a process called biofixation. And they have employed algae to do the job.
Many scientists and environmentalists think that algal farming, when aligned closely to nature, will give the most promising results in this context. The key advantages of CO2 sequestration using algae are:
• Owing to the fact that high purity CO2 gas is not required for algae cultivation, flue gas containing CO2 and water can be fed directly to the photobioreactor.
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• Power plants that are powered by natural gas or syngas have virtually no SO2 in the flue gas. The other polluting products such as NOx can be effectively used as nutrients for micro algae. • Combining microalgae culturing and CO2 sequestration yields algal biomass that can be used to produce high‐protein animal feeds, agricultural fertilizers, biopolymers / bioplastics, and more. o • Algae can grow in temperatures ranging from below freezing to 158 F • The entire process is a renewable cycle.
Business Opportunities from Algae‐based CO2 Sequestration
This presents an interesting opportunity for companies that produce large CO2 emissions. Many countries of the world that are signatories of the Kyoto Protocol have an existing carbon credits and trading program. The US, which, even though is not a Kyoto Protocol signatory, has a carbon trading program of its own. This implies that for power plants and other entities that are large scale emitters of CO2; sequestering CO2 using algae provides the benefit of monetizing the carbon credits while at the same time producing biofuels.
Business opportunities exist both for companies that are CO2 emitters as well as for external businesses such as consulting and engineering companies that are willing to work with power plants to make the algae‐based CO2 sequestration and biofuels production a reality.
Global Carbon Market Growth
• Global carbon markets were worth $144 billion in 2008, nearly 15 times the value in 2005! (Source: World Bank) • A total 4.8 billion tons of carbon dioxide, the main greenhouse gas blamed for global warming, were traded last year, up 61 percent from the 3 billion traded in 2007. • The value of the European Union's Emissions Trading Scheme rose by 87% to $92 billion last year, according to the World Bank. That scheme traded 3.1 billion tons of emissions permits in 2008, up from 2.1 billion in 2007. • As of March 2009, there were more than 4,500 projects in the U.N.'s Clean Development Mechanism (CDM) pipeline, which have the potential to deliver around 2.9 billion offset credits called certified emissions reductions (CERs) by 2012.
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5 Summary of Availability and Cost of CO2 Sources
Potential 6 CO2 Source (10 kg/y) Concentrated, high pressure sources Liquid synthetic fuel plants 40 Gaseous synthetic fuel plants 220 Gasification/Combined cycle power plants) 0 – 790 Concentrated low‐pressure sources: Enhanced oil recovery 8 – 32 Ammonia plants 9 Ethanol plants <0.1 Dilute high pressure sources Non commercial natural gas 52 – 100 Refineries 13 Dilute low‐pressure sources Anaerobic digestion(biomass/wastes) 230 Cement plants 26 Fossil steam plants 0 – 790 Totals 600 – 2250
6 Projected Global Energy Demand and CO2 Emissions, 2000 To 2020
Demand (EJ/year) Emissions(GtC/Year) Energy source and use 2000 2010 2020 2000 2010 2020 Oil – electricity a 14 15 18 0.27 0.31 0.35 Oil – transport b 69 97 119 1.60 2.16 2.65 Oil – other c 64 71 75 1.25 1.38 1.47 Total oil d 147 182 212 3.12 3.85 4.47 Coal – electricity a 65 85 106 1.68 2.19 2.73 Coal – other e 27 22 17 0.70 0.57 0.43 Total coal d 92 107 123 2.38 2.76 3.16 Natural gas – electricity a 29 43 62 0.44 0.66 0.95 Natural gas – otherf 55 71 91 0.84 1.09 1.39 Total natural gas g 84 114 153 1.29 1.74 2.34 Total fossil fuels 323 403 488 6.79 8.35 9.97 Fossil Electricity 108 143 186 2.39 3.16 4.03
5 Source: Mark E. Huntley (University of Hawaii) and Donald G. Redalje (University of Southern Mississippi)
6 Source: Mark E. Huntley (University of Hawaii) and Donald G. Redalje (University of Southern Mississippi)
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Non fossil electricity a 38 43 45 SRES scenario AIT h 6.90 8.33 10.00 Total energy demand 361 446 533 Note: a Demand and emissions from IEA (1998) b Demand from EIA (1999); Emissions from WEC (1998) c Demand calculated by difference, emissions assume conversion for electricity i.e. 19.5 MtC/EJ d Demand from EIA (2003a) e Demand calculated by difference, emissions assume conversion for electricityi.e.25.8 MtC/EJ f Demand calculated by difference, emissions assume conversion for electricityi.e.15.3 MtC/EJ g Demand from EIA (2003b) h IPCC (2001c, Appendix II)
Case Study of Algae‐based CO2 Sequestration
Here’s a case study of how Portland General Electric, one of Oregon’s state utilities, is exploring the algae CO2 sequestration route. (Oct. 2008)
One of the most recent algae‐inspired projects is being undertaken by Washington‐based Columbia Energy Partners LLC, which hopes to convert carbon dioxide from a coal‐fired electricity plant into algal oil.
CEP is a renewable energy company that primarily focuses on wind and solar energy. Two years back, the company approached one of Oregon’s electric utilities, Portland General Electric to pitch the idea of converting carbon dioxide from the utility’s coal‐fired plant in Boardman, Ore., into algal oil for the production of biodiesel. CEP elected to approach PGE for the project because it operates Oregon’s only coal‐fired power plant and might be willing to participate. The Boardman plant also happens to be located in the Eastern part of the state, which is conducive to algae growth. This summer, PGE agreed to begin exploring the option.
CEP is currently conducting the first phase of what will potentially be a three‐phase project. A feasibility study is underway at the 600 megawatt Boardman facility to determine if algae can feed on the carbon dioxide emitted from the plant and what amounts of carbon dioxide, and potentially other greenhouse gases, can be consumed by the algae. Seattle‐based BioAlgene LLC is providing the algae strains for this portion of the project, according to Norling. The possibility of a larger build‐out is also being researched at this time. He anticipates a full‐scale operation to include 7,500 acres of open air algae ponds.
Results from the first phase are awaited. If the results are positive, the company plans to move forward with engineering details and the construction of larger, in‐ground algae tanks while continuing to research the process.
PGE had requested the project be conducted in “baby steps” and one can expect a commercial‐ scale project to be three to five years away. Some of the challenges that are being faced by the
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team have to do with keeping open‐air algae ponds free from contamination and the actual process of squeezing oil from the algae.
CEP is financing the project. The company hopes to eventually sell the carbon credits it would gain from the process back to PGE or another buyer, as well as generate revenue from the algae oil and potential animal feed byproducts.
Algae Bioremediation for Waste Water Treatment
Algae + Wastewater / Sewage = Clean Water + Biofuels!
Algae grow best off of waste streams, agricultural, animal, or human waste.
All over the world, municipalities and utilities spend enormous sums to treat wastewater and sewage and remove them of pollutants and impurities.
Oxidization of sewage is required to remove some of the impurities in sewage, and the oxidation process requires large amounts of mechanical energy. Algae use the sun's energy to provide that oxygen. These algae use the nutrients in sewage and the carbon dioxide released from the micro‐organisms in sewage and release oxygen, which is in turn used by the micro‐ organisms to grow and decompose the matter in sewage.
Some of the pollutants in the wastewater and sewage are nutrients on which algae thrive. Another fact is that the algae that grow in human sewage tend to have a lot of oil. Combine the above facts and you get a rather value proposition: Use algae to clean/biofilter nutrient‐laden, CO2‐laden and low‐oxygen water and turn it in oxygen‐rich, CO2‐low water as it flows back into the ecosystem, while simultaneously producing oil!
This is the powerful idea that has driven some companies to make serious efforts at growing algae in sewage for oil.
Aside from the fact that expensive reactor systems are not required for algae cultivation, this method is also unlike some other algal‐cultivation (for fuel) methods that rely on using algae that might not have a particular medium as its natural habitat.
Some studies have looked into designing raceway algae ponds to be fed by agricultural or animal waste. Others are pursuing efforts to redesign wastewater treatment plants to use raceway algae ponds as the primary treatment phase with the dual goal of treating the waste and growing algae for biodiesel extraction.
Benefits of Algae‐based Wastewater Remediation Treatment
• Consumption of nutrients by algae represents an alternative solution for meeting new nutrient discharge criteria.
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• Potential sale of nutrient credits generated through nutrient reductions • Potential revenues from sale of biofuels produced • Potential sale of carbon credits • Bringing basic sanitation services to the millions who lack them – this is a top public health priority for many countries.
Business Opportunities from Algae‐based Wastewater Remediation
Wastewater treatment using algae presents an interesting opportunity for companies and utilities that are in the business of treating industrial and domestic waste water. These companies employ expensive processes for wastewater treatment, some of which can be accomplished by growing algae and letting them do the job. This results in reduced costs to the company while at the same time producing saleable biomass.
As in the case of CO2 sequestration, business opportunities exist both for companies that are in waste water & sewage treatment as well as for external businesses such as consulting and engineering companies that are willing to work with these utilities to make the algae‐based wastewater treatment and biofuels production a reality.
Case Study of Waste Water Treatment with Algae
Sintef Fisheries / Irish Seaweed Centre Project
This was a Joint, INTERREG IIIC‐financed project between SINTEF Fisheries and Aquaculture, and the Irish Seaweed Centre at the Martin Ryan Institute and Oyster Creeks Seafoods in Ireland.
Source: Sintef Fisheries and Aquaculture ‐ March 2006
Land‐based aquaculture systems release water with high values of nutrients. Marine algae use most of these to produce biomass. This principle has been used to clean the water using algae in the effluent, by the research team. The resulting biomass can be a source of valuable chemicals for use in the food and drug industries.
This cleansing technology for aquaculture effluents was tested in the joint project in Ireland.
The technology was tested with the algae Porphyra and Ulva. These two were chosen because both algae have a high growth rate and a high N‐content, and will therefore be able to function as effective cleaners.
The results from the experiment showed a clear reduction in the level of nutrients in the waste water containing the algae.
The following chart, which provides the results of the experiment, shows the reduction in concentration for N and P.
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Notes: in: concentration of NH1 in the effluent entering the tank containing algae out: concentration of NH1 in the effluent exiting the tank containing algae
The technology is expected to have excellent potential in integrated aquaculture by adding value to fish farming.
Updates on Wastewater Treatment Using Algae
• In December 2010, the city Department of Environmental Protection announced that it would be starting a pilot project at the Rockaway Wastewater treatment plant that includes a machine that would convert algae into biofuel. The wastewater from the plant produces excess nitrogen, which is eventually discharged into Jamaica Bay. Although the chemical element has been killing saltwater marshlands in the ecosystem, the machine would use the same wastewater to grow algae that would be converted to biofuels, according to the department.
• In February 2011, in New York, Rochester Institute of Technology researchers reported they were working on using wastewater to grow algae for biodiesel. The process cleans wastewater by consuming nitrates and phosphates while reducing both bacteria and toxins in the water. The end result: clean wastewater and stock for a promising biofuel. The algae can then be used to produce biodiesel. The scientists are confident that the algae will take out 99% ammonia, 88% of the nitrate and 99% of the phosphate from the wastewater. In three to five days, pathogens are also removed. Data also shows that the coliform counts are dramatically reduced below the allowed levels.
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2.2.2.2 Other Non‐fuel Applications of Algae
Algae are possibly one of the most useful, yet one of the most ignored organisms. In addition to the fact that algae are responsible for consuming most of the CO2 and releasing the most amount of oxygen that keeps us alive, algae are also being used in diverse industries and applications.
In fact, according to some, fuel has the lowest value of any product that is derived from algae! Considering the wide range of applications algae are used for, one of the aspects to be considered while investing in algae energy business could be to assess how to profit from commercialising the cake and the left‐over after extracting the oil, by using them for other applications / products. Also of interest here are products such as glycerine ‐ which is a by‐ product of transesterification of algal oil into biodiesel – which have their own diverse applications.
Indeed, some of the research and commercial programs around the world are exploring more avenues to develop high‐value co‐products from algae, from animal feeds to antibiotics to specialty chemicals. There are some efforts at some rather interesting applications as well, such as algae‐based paper and concrete additives.
Summary of Uses / Applications of Algae
A summary list of non‐fuel applications of algae:
• Biopolymers & Bioplastics • Animal & Fish Feed ‐ Shrimp feed, Shellfish Diet, Marine Fish Larvae Cultivation • Paints, Dyes and Colorants • Lubricants • Food, Health Products, Nutraceuticals • Cosmetics • Chemicals • Pharmaceuticals • Antimicrobials, Antivirals & Antifungals • Neuroprotective Products • Slimming Related Products • Anti‐cellulite • Skin Anti‐ageing & Sensitive Skin Treatment • Pollution Control • CO2 Sequestration • Uranium/Plutonium Sequestration • Fertilizer Runoff Reclamation • Sewage & Wastewater Treatment
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Biopolymers & Bioplastics
Typically, long chain polymers, present in the algae lipids are used for making bioplastics.
Market Size & Growth
According to a report from the consulting firm Helmut Kaiser, the market for bioplastics is already significant, having reached over US$1 billion in 2007; it is expected to be worth over US$10 billion by 2020. A number of companies are entering and investing in the market with new applications and innovations in the automotive and electronics industry leading the market boom. Over 500 bioplastics processing companies are operating today, with more than 5000 expected by 2020.
• Fast growing market, with a projected market size of $10 billion by 2020. • World market expected to grow 30% per year for next decade • Bioplastics could eventually capture 10%‐20% of overall plastic market
Animal & Fish Feed
Animal feed and fish feed are produced from the biosolid residues left when lipids and carbohydrates have been extracted from algae.
A number of algae species are used as fish feed. The demand for more fish meal will increase as the demand for fish farms being utilized for human consumption grows due to the environmental effects over open ocean fishing. Algae are also used to feed the brine shrimp used to feed other species of farm‐raised fish such as salmon. Thus, algae are in high demand for fish food in the aquaculture market and provide a great revenue stream for the algae industry.
Astaxanthin is an antioxidant‐rich carotenoid around which a growing body of science is demonstrating eye, heart, skin and cancer prevention properties. Some versions of astaxanthin are said to have an antioxidant payload 500 times that of vitamin E. The global astaxanthin market was $257 million during 2009 (Source: BCC Inc.,). The human uses market is growing and estimated at about $27‐$40 million. Most astaxanthin is derived from the algae, Haematococcus pluvialis, which is commonly consumed by fish and crustaceans – like salmon and lobster – and is responsible for their pink colouration.
Market Size & Growth
• The global animal feed market is worth about $200 billion, with a CAGR of 3‐4%
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Paints, Dyes & Colorants
The natural pigments produced by algae can be used as an alternative to chemical dyes and coloring agents.
Market Size & Growth
• Paints & Coatings Global paint & coating market worth $ 86 billion Market forecast 2005 ‐2010 – 5.4 % by volume & 3.6 % by sales
• Dyes The world market for dyes, pigments and dye intermediates is estimated at about US$ 23 billion consisting of dyes and pigment market valued at US$ 16 billion and dye intermediates market of US$ 7 billion. (2008)
Lubricants
Lubricants can be made from the lipids (oil) in algae.
Market Size & Growth
Total global lubricant market by 2012 will be $120 billion growing from $110 billion in 2009, with a CAGR of about 3%.
Food, Health Products & Nutraceuticals
Seaweeds are extensively used as food, and blue green algae have been used for weight loss and as nutritional supplements.
Market Size & Growth
• Carrageenan Market ‐ Carrageenan comes from algae or seaweed, and can be used as a thickening agent in place of animal‐based products like gelatin, which is extracted from animal bones. It is usually derived from either red alga, sometimes called Irish moss. During the past few years, the total carrageenan market has shown a growth rate of about 3% per year, reaching estimated worldwide sales of about US$ 600 million in 2007‐08, with production exceeding 50,000 T.
• Agar Market ‐ Agar is produced principally from Gelidium spp and Gracilaria spp, although a number of other algae can serve as a raw material. It is chiefly used as an ingredient in desserts throughout Japan, and in recent times has found extensive use as a solid substrate. The global production of agar in 2006 was estimated to be 10,000 T with a market value of about $ 140 million.
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• Omega‐3 and the Functional Food Market Size ‐ Omega 3 algae oil is nutritionally identical to fish oil. It contains DHA and EPA.
o In 2004, the global Omega‐3 fatty acid market was worth US$ 690 million, and growing at about 10%. The Asian Omega‐3 polyunsaturated fatty acids (PUFA) ingredients market alone is expected to reach $596.6 million in 2012 (Sources: Seambiotic, Frost & Sullivan) o Global demand for Omega‐3 in baby and infant food is estimated at $350 million per year. The total global market for Omega‐3 for all end‐products estimated to be over $750 million (2006). According to market research carried out by the European market analysts Frost & Sullivan, of all the fine foods ingredients, it is Omega‐3 which is expected to have the greatest future.
• Nutraceuticals ‐ Global nutraceuticals market is estimated at US $123.9 billion in 2008 and is expected to reach $176.7 billion in 2013, a compound annual growth rate (CAGR) of 7.4%. (BCC Research, 2009)
• Carotenoids ‐ Carotenoids are a class of natural fat‐soluble pigments found principally in plants, algae, and photosynthetic bacteria, where they play a critical role in the photosynthetic process. In human beings, carotenoids can serve several important functions. The most widely studied and well‐understood nutritional role for carotenoids is their provitamin A activity. The global market for carotenoids was $766 million in 2007. This is expected to increase to $919 million by 2015, a compound annual growth rate (CAGR) of 2.3%. Beta‐carotene has the largest share of the market. Valued at $247 million in 2007, this segment is expected to be worth $285 million by 2015, a CAGR of 1.8%.
o Special mention needs to be made of Astaxanthin, an antioxidant‐rich carotenoid around which a growing body of science is demonstrating eye, heart, skin and cancer prevention properties. Some versions of astaxanthin are said to have an antioxidant payload 500 times that of vitamin E. The global astaxanthin market is estimated at about $257 million, most of which is used in fish colouration (2009 data; estimates by BCC Research for astaxanthin market size are however lower). The human uses market is growing and estimated at about $27‐$40 million. Most astaxanthin is derived from the algae, Haematococcus pluvialis, which is commonly consumed by fish and crustaceans – like salmon and lobster – and is responsible for their pink colouration.
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Global Carotenoid Market Value by Product 2007 & 2015 ($ Million)7
Product 2007 2015 Beta‐carotene 247 285 Astaxanthin 220 252 Canthaxanthin 110 117 Annatto 69 95 Others 120 170 Total 766 919
Cosmetics
In cosmetics, algae act as thickening agents, water‐binding agents, and antioxidants. Carrageenans are extracted from red algae and alginates from the brown algae. Other forms of algae, such as Irish moss, contain proteins, vitamin A, sugar, starch, vitamin B1, iron, sodium, phosphorus, magnesium, copper, and calcium. These are all beneficial for skin, either as emollients or antioxidants.
Market Size & Growth
Cosmetics Market Size Forecast – Overview 8 Country Market Size, (all units in billions in local Country currencies, except where specified) CAGR 2006‐ 2016‐ 2006 2011 2016 2021 2026 2016 2026 EU12 5.2 8.5 12.2 15.9 21.1 8.8% 5.6% EU15 50.9 61.3 73.4 88.1 111.5 3.7% 4.3% EU27 65.5 81.8 100.5 122.4 156.2 4.4% 4.5% U.S. 47.9 62.9 78.4 94.9 114.5 5.0% 3.9% Japan** 3.5 3.9 4.7 5.7 6.7 3.1% 3.6% China* 10.3 20.8 38.7 67 108.8 14.1% 10.9% , Billions of LC CAGR *Chinese market size is given in USD **Japanese market size is in trillions of yen
In early 2011, Solazyme announced the Skincare Line Algenist ™, the first to provide the anti‐ aging breakthrough ingredient alguronic acid, according to the company. According to the company, Solazyme's biotechnology scientists unexpectedly discovered alguronic acid, a true breakthrough in the anti‐aging market, after studying thousands of microalgae strains for
7 Source: BCC Research, 2008
8 Source: Global Insight based on Global Consumer Markets – Nov 2007et Size Oilgae ‐ Home of Algae Energy‐www.oilgae.com
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renewable energy solutions. When researched for potential anti‐aging benefits, alguronic acid demonstrated significant rejuvenating properties. The Algenist Concentrated Serum minimizes the look of wrinkles and boosts skin radiance, according to the company.
Chemicals & Fertilizers
Algae biomass from which oil has been extracted (called the algae cake or de‐oiled algae meal) can be used as organic fertilizers in place of synthetic fertilizers.
Algae can also be used as a starting material for a variety of specialty chemicals and polymers. Market Size & Growth
• Fine Chemicals ‐ $50 billion • Polymers ‐ $250 billion • Bulk Chemicals ‐ $300 billion • Specialty Chemicals ‐ $400 billion • Agrochemicals ‐ The market size is US$ 28 billion, with a CAGR of about 0.9% (2006 data, source: Fred Mathisen (Wood Mackenzie UK)
(Data for fine chemicals, bulk chemicals and specialty chemicals denote approximate global market sizes)
Health & Pharmaceuticals
Algae have been used for centuries, especially in Asian countries, as a remedy to cure or prevent various physical ailments. Scientific research has established a connection between these nutrient‐rich sea plants and the body’s immune system response. It all started when intensive studies of marine life began in the 1970s to locate potential sources of pharmacologically active agents. Researchers found that algae contain a remarkable amount of components valuable for human health. According to these researchers, algae are beneficial in the following ways:
• It is a complete protein with essential amino acids (unlike most plant foods) that are involved in major metabolic processes such as energy and enzyme production. • It contains high amounts of simple and complex carbohydrates which provide the body with a source of additional fuel. In particular, the sulfated complex carbohydrates are thought to enhance the immune system’s regulatory response. • It contains an extensive fatty acid profile, including Omega 3 and Omega 6. These essential fatty acids also play a key role in the production of energy. • It has an abundance of vitamins, minerals, and trace elements in naturally‐occurring synergistic design.
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Market Size & Growth
• Pharmaceuticals o Growing at a CAGR of around 8%, the global pharmaceutical market is forecasted to reach US$ 1043.4 billion in 2012. o North America remains the largest pharmaceutical market constituting 42.8% of the global sales in 2007. o Emerging markets in Central and Eastern Europe expected to drive growth in future, with Asia‐Pacific also expected to become a lucrative pharmaceutical market in future. • Antimicrobial o While the overall market for antimicrobials is relatively small, it is poised for explosive growth, according to Frost & Sullivan. The consultancy estimates a CAGR of 25.9% between 2003 and 2010, with revenues increasing from €28.8 million to €143.6 million. (Oct 2005) • Antiviral and Antifungal o The $38 billion market for anti‐infectives (2006 data) can be readily subdivided into the antibiotic, antifungal, antiviral and HIV sectors. Although antibiotic sales dwarf those of the antifungal market (about $19.8 billion in 2006), the sectors can be divided into two high volume markets (antibiotics and antifungal) and two lower volume markets (HIV and antiviral). o CAGR forecast – 4.8% for the period 2005‐2011
Pollution Control
Algae are currently used in many wastewater treatment facilities, reducing the need for more dangerous chemicals. Algae can be used to capture the runoff fertilizers that enter lakes and streams from nearby farms. Algae are used by some power plants to reduce CO2 emissions.
Many of the above markets where algae can find applications are large and growing markets. Data on their market sizes and potential are provided below.
2.3 Industries with Synergistic Benefits from Algae Energy Opportunities
As a result of the wide range of applications and end uses of algae, a number of industries could derive synergistic benefits from the algae energy industry. For these industries, cultivating algae could mean that they are able to add value to their existing business while at the same time producing biofuels.
A list of these industries and inputs on the synergistic benefits that can be derived are provided below.
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List of Potential Industries
The list of industries for which it is attractive to explore investing in the algal energy domain owing to synergistic benefits:
Sewage & Water Treatment Companies
• Algae can be used for bio‐remediation, especially in the secondary stage of water treatment. Thus, there are two benefits. Waste water gets purified, and we get fuel feedstock in the process.
• The industries listed below can use algae for the secondary stage of wastewater treatment o Meat and Poultry o Pulp and Paper, and Produce (i.e., Fruits & Vegetable) o Textiles Dyeing o Metal Finishing o Dyes & Pigments o Pharmaceutical o Food & Dairy o Biotechnology o Starch & Cellulose o Chemicals o Pesticides & Insecticides o Photography o Fertilizers
Agriculture & Farming
• Traditional crops – If farming companies grow algae for biodiesel, they can use the de‐ oiled algae extract as bio‐fertilizer. • Algae farms – Existing algae farms can grow algae for fuel in addition to the end‐product markets for which they are already cultivating algae.
Companies Producing Animal Waste
• Many companies that produce large quantities of animal waste use the waste in digesters to produce methane, which in turn is used as a heating fuel. Using large quantities of methane gives out CO2 which can be used to grow algae. Algae can also grow in the liquid effluents released from the anaerobic digesters. The additional benefit these companies get is that they can use the de‐oiled algae meal as animal feed.
The following is the list of companies producing animal waste that could specifically benefit from growing algae:
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o Pork o Poultry o Meat o Diary
Polluting Industries
• Industries that emit large amounts of CO2 during their operations can use algae for CO2 sequestration. They thus get two benefits: They are able to sequester CO2 cost‐ effectively, and they get a fuel feedstock.
The following is the list of companies producing animal waste that could specifically benefit from growing algae: o Coal Burning and Natural Gas Power Plants o Petrochemicals o Iron & Steel o Cements o Sugar o Tyres o Carbon Black o Mining o Aluminium o Paper o Inorganic Chemicals o Fertilizers
Algae‐based Products Manufacturers
Many industries that use algae use primarily the protein component of the algae. For these companies, algae fuel in the form of biodiesel presents an interesting opportunity: these companies can extract the oil (lipid) from algae for biodiesel and can use the deoiled algae cake rich in proteins for their products. For those industries that use the lipids in algae, they can consider using the left‐over biomass for producing fuels such as ethanol or other hydrocarbons.
Industries that currently use algae for their products are: • Biopolymers & Bioplastics • Human Food & Food Supplements • Animal & Fish Feed ‐ Shrimp feed, Shellfish Diet, Marine Fish Larvae Cultivation • Paints, Dyes and Colorants • Lubricants • Food & Nutraceuticals • Cosmetics • Agrochemicals • Pharmaceuticals
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• Antimicrobials, Antiviral & Antifungal • Neuroprotective Products • Slimming Related Products • Anti‐cellulite • Skin Anti‐ageing & Sensitive Skin Treatment
2.4 Wide Range of Business Opportunities
Algae, one of the key organisms that sustain life on the planet by producing more than half of the total world’s supply of oxygen, are already being used in a number of commercial applications. Such widespread use of algae will likely increase its attractiveness as a biofuel feedstock, owing to the business synergies that can be derived.
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3. Real World Status of Algae Energy Projects
3.1 Prominent Companies 3.2 Status of Algae Fuel in Real World 3.2.1 Industry Concentration 3.2.2. Dominant Designs 3.2.3 Implementation Status of Prominent Companies 3.2.4 Q&A 3.3 Bottlenecks & Barriers 3.3.1 Biggest Challenges 3.3.2 Entry Barriers 3.3.3 Q&A
3.1 Prominent Companies
As of 2011, the algae energy industry is just 6 years old, but there are a few companies that have already achieved prominence. The following is the list of companies that have been able to make good progress so far. (This is a fast changing industry, so one can expect continuous changes to this list!)
• Aquaflow Bionomic • Cellana • Exxon‐Mobil / Synthetic Genomics • OriginOil • PetroSun • Sapphire Energy • Seambiotic • Solazyme • Solix Biofuels • Valcent
3.2 Status of Algae Fuel in Real World
What is the status of this new industry in terms of the number of companies, existence or emergence of standards and project implementation? This section explains these aspects.
3.2.1 Industry Concentration
This industry has few companies in it right now. While precise estimates of the number of companies are not available at this stage, the total number of companies that have made significant commitments and investments in this field is approximately 90, according to our estimates (as of May 2011), even though there are about 300 companies pursuing efforts at various levels.
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In terms of size, most companies are very small or small, with most of them having fewer than 50 employees. A small percentage of the companies are established companies that are over 10 years old.
The few large companies one sees in this field today are the companies that have been formed with joint ventures with Big Oil companies – for instance, Shell has a joint venture with HR Biopetroleum and together they have formed the company Cellana.
Approximate Number of Companies Directly Involved In Producing Fuels from Algae
Year # of companies 2001 1 2002 2 2003 4 2004 5 2005 10 2006 15 2007 25 2008 50 2009 150 Mid 2010 200 End 2010 275 May 2011 300 Source: Oilgae Estimates
Age of Algae Energy Companies ‐ 2011
Age of Company* % of companies (Years) >5 8 2‐5 40 1‐2 27 Less than 1 year 25 Source: Oilgae Estimates
*: Number of years in operation specifically with a focus on algae energy
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3.2.2. Dominant Designs
Dominant design is a concept that refers to technological/process designs that have become de‐facto standards in their corresponding market places. If a design that represents a core technology or process becomes dominant and gets accepted as the accepted industry standard, many services and products – including new products or services ‐ in the industry might need to depend on the dominant design for their success. Dominant designs, in some instances, could hence be construed as a disincentive for completely original ideas.
As of May 2011, for the algae energy industry, there is no dominant design – be it in terms of end products, technology, or processes.
3.2.3 Implementation Status of Prominent Companies
Status of Algae Fuel Projects from Prominent Companies
We provide a brief report on the current status of efforts for the prominent companies in this industry. All these are based on data available as of Dec 2010.
Aquaflow Bionomic
In March 2008, the company said it has achieved commercial scale continuous harvesting of wild algae at the Marlborough oxidation ponds. The company also announced that it had commissioned its newly built proprietary biorefinery and made its first machine run.
In December 2008, the company announced that its wild algae has been successfully refined to produce the world’s first sample of synthetic paraffinic kerosene (SPK) converted from compounds derived from Aquaflow’s wild algae.
In 2009, Aquaflow announced that it is in discussions with more than 16 possible projects over three continents, including talks with municipal authorities and corporates seeking to develop low‐carbon fuels. The company has been running a pilot plant of its algae harvester at the Blenheim District Sewage ponds in New Zealand, where it has stockpiled 40 tonnes of algae, some of which has already been used to produce jet fuel.
In July 2009, Aquaflow Bionomics and Solray Energy teamed up to overcome the challenges that have kept algae biofuels from commercial production. The partnership will combine Aquaflow’s methods of harvesting algae grown from wastewater streams and Solray’s process of turning that algae into fuel.
Cellana
Cellana has a patented process and research expertise from HR Biopetroleum that has been developed over nearly two decades. The work by HR Biopetroleum has solved contamination
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problems that can occur while identifying the best algae species for oil production, says the company. Cellana's pilot plant is producing oil now and a demonstration plant is being built in Kona (Hawaii) to scale it up. Within three years it hopes to have its first commercial plant operating and within six years, another five plants.
In January 2010, HR BioPetroleum, a member of the National Alliance for Advanced Biofuels and Bioproducts (NAABB) consortium, participated in a $44 million investment for advanced biofuels, and also in the $25 million grant awarded to UOP by the U.S. Dept. of Energy for biofuels production.
In January 2011, Shell reported that it had exited its Cellana algae biofuel research joint venture in Hawaii that was formed in 2007 with closely held algae biofuels company HR Bio Petroleum. Shell is shifting research to waste from sugarcane farming after ending the algae project. HRBP bought Shell’s stake and became the sole owner of Cellana. HR Biopetroleum changed its name to Cellana Inc.
In May 2011, Cellana said it had begun producing oil from algae grown at its Kona facility and is on track to begin commercial production by 2014. The company reported it was harvesting up to one ton of algae a month in ponds at its 6‐acre facility at Keahole Point. The company estimates it will be able to grow up to 60 tons of algae capable of producing 3,800 gallons of oil per acre per year.
OriginOil
OriginOil’s patent‐pending technology, Quantum Fracturing for algae oil production, has been one of the company’s highlights so far.
The heart of the OriginOil system is the Helix BioReactor™, an advanced algae growth system that can grow multiple layers of algae biomass around‐the‐clock with daily harvests.
The company also mentioned an interesting harvesting technique in July 2008. It has a cascading production strategy in place to harvest 90% of matured algae, and it uses the remaining 10 percent for the production of more algae.
In September 2009, the company announced an innovative production system using a type of algae that attaches itself to growth surfaces. The new system helps pursue clean water goals while generating algae for fuel and other valuable products in wastewater treatment plants. In such plants, Origin Oil’s Attached Growth System can be configured to encourage bacterial growth in addition to growth of algae. Combining algal and bacterial growth makes for better nutrient extraction than either one of them alone, contributing to clean water goals while making fuel and absorbing CO2.
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In December 2009, the company agreed to partner with Research Institute of Tsukuba Bio‐Tech (RITB), recently approved for funding to develop algae to jet fuel applications by Japan Science & Technology Agency (JST).
In January 2010, the company announced that ongoing industrial algae experiments in the company had uncovered a constant daily rate of algae production, which the company termed the Daily Harvest Constant. OriginOil researchers learned that the amount that can be harvested in the organism’s steady state appears to stabilize at a specific amount of algae biomass per day, regardless of the concentration of algae.
In Mar 2011, OriginOil announced it had developed a new method for targeting invading microbes that can kill or damage algae ponds. The company plans to Algae Screen, uses low‐ power electromagnetic pulses to target rotifers, ciliates, and bacteria harmful to algae growth. And the pulses do not harm the algae themselves, according to OriginOil. The electromagnetic pulses can be tailored to take into account issues such as the type of algae being grown, as well as the salinity and water hardness of an algae pond.
PetroAlgae
PetroAlgae is commercializing environment‐friendly algae developed by a research team at Arizona State University that generates over two hundred times more oil per acre than crops like soybeans.
In May 2008, the company announced that it has developed a new system for extracting oil from algae.
In May 2009, a senior executive of the company predicted that PetroAlgae will be the first company to commercially produce algae biofuel.
In June 2009, the company announced the addition of nine senior international sales executives to license its breakthrough commercial micro‐crop technology system that enables large scale production of biofuels.
In December 2009, PetroAlgae Inc. signed a Memorandum of Understanding with Foster Wheeler AG’s Global Engineering and Construction Group for engineering services to be performed in conjunction with PetroAlgae’s micro‐crop technology.
PetroSun Biofuels
The company plans to establish algae farms and algal oil extraction plants in Alabama, Arizona, Louisiana, Mexico, Brazil and Australia during 2008.
In July 2008 the company’s Board of Directors approved plans to install a pilot plant designed for algae production at an Arizona wastewater treatment facility. This project will be a scaled
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In December 2008, the company announced plans to integrate algae systems with catfish farm ponds for commercial algae‐to‐biofuel operations. The Company’s BioFuels Aquaculture Lease Program proposes to secure the surface rights of existing catfish farm ponds for the purpose of effectuating its proprietary algae‐to‐biofuels technology in a commercial algae farm system operation. The program provides the farm pond owner with an Advanced Base Rent Incentive, royalty income on a monthly basis from algal oil and algae biomass production and a potential future benefit from a carbon credit program.
In Jun 2009 PetroSun, Inc. announced that PetroSun BioFuels and the Town of Gilbert, Arizona have executed an agreement to commence an algae‐to‐biofuels wastewater pilot program at the Neely Wastewater Reclamation Facility. The plant is operated by Severn Trent Services. The purpose of the program is to evaluate the feasibility of the utilization of wastewater as a source of nutrients and water for the cultivation of algae, and its subsequent processing into feedstock for the production of biodiesel and other products. The town of Gilbert will be offered all biodiesel produced from this pilot program at the actual cost of production and processing during the term of the program.
In October 2009, PetroSun announced an update on its domestic Algae‐to‐Biofuels, Algae Derived Co‐Products and Alternative Energy Programs. The focus of the algae operation is to produce algal oil for conversion to fuel, recognizing however that a major revenue contributor to the program will be the value of the co‐products, including animal feed and fertilizer.
Sapphire Energy
In mid‐2008, the company claimed it has succeeded in refining a high‐octane gasoline from algae that is chemically identical to crude oil.
In January 2009, Japan Airlines & Continental Airlines used algae biofuels from Sapphire Energy to fuel their flights powered by biofuel blends.
In September 2009, Sapphire unveiled its plug‐in hybrid electric vehicle in front of San Francisco’s city hall, combining several promising technologies aimed at slashing carbon emissions.
In October 2009, Sapphire Energy built with the cooperation of a number of partners, a 300‐ acre demonstration Integrated Algal Biorefinery designed to produce renewable gasoline, diesel and jet economically from an algal feedstock.
In December 2009, Sapphire Energy was awarded a $50 million grant from the U.S. Department of Energy as well as a loan guarantee of $54.5 million from the U.S. Department of Agriculture.
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The company plans to build a demonstration project in Luna County near Columbus and Deming.
Seambiotic
In June 2008, Inventure Chemical (Seattle, WA) entered into a joint venture with Seambiotic to construct a pilot commercial biofuel plant in Israel, using algae created from CO2 emissions as feedstock. The plant will utilize high‐yield oil‐rich algae strains that Seambiotic has developed and grown in its open pond system coupled with Inventure's patent‐pending conversion processes to produce ethanol, biodiesel and other value‐added chemicals.
In Jan 2009, Seambiotic announced that it is in transition from the pilot plant stage to large scale industrial algae cultivation and production. It also announced that the company is in the process of establishing a 5 hectare algae farm in collaboration with the Israeli Electric Corporation, expected to be on production later in 2009.
In July 2009, Seambiotic announced that its U.S. subsidiary, Seambiotic USA, has entered into an agreement with NASA Glenn Research Center to develop an on‐going collaborative R&D program for optimization of open‐pond microalgae growth processes. Under the Agreement, NASA Glenn and Seambiotic USA will work together to improve production processes and to study and qualify algae oil from alternative species and production processes as candidate aviation fuel at NASA's test facilities. The goal of the agreement is to make use of NASA’s expertise in large‐scale computational modeling and combine it with Seambiotic’s biological process modeling to make advances in biomass process cost reduction.
Solazyme
The company has developed a new way to convert biomass into fuel using algae, and the method could lead to less expensive biofuels. Solazyme powered a Mercedes with algal‐based biodiesel at the Sundance Film Festival in Park City, Utah in January 2008.
In September 2009, Solazyme announced that it has been selected by the U.S. Department of Defense (DoD) to provide 1500 gallons of the world’s first 100% algae derived jet fuel for testing and certification by the U.S. Navy. Solazyme was awarded a separate Navy contract to provide R&D and delivery of over 20,000 gallons of renewable algae derived F‐76 Naval distillate fuel for use in Navy ships earlier in September. In fulfillment of the jet fuel contract, Solazyme will utilize its algal renewable oil production process in conjunction with Honeywell UOP’s Ecofining process to provide renewable jet fuel for testing and fuel certification to confirm it meets all military specifications and functional requirements.
In December 2009, Solazyme announced breakthroughs in its “nutritionals” business by using algae to create algae‐based mustard, a milk substitute and even cookies. It is testing products with major food manufacturers and believes it will have products on the market by 2010.
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Valcent
Valcent Products has developed a high density vertical bio‐reactor for the mass production of oil bearing algae while removing large quantities of CO2 from the atmosphere.
In March, 2008, Valcent announced that data from its fully operational field test plant had confirmed commercial production potential with several companies expressing interest to build out commercial plants on a joint venture basis. It announced that its High Density Vertical Vegetable Growing System (VGS) has now been operating over the last six months and has produced leafy lettuce, micro greens, spinach, herbs, mints, beets, strawberries, wheat grass, alfalfa and other grains. It also announced that the research and development team of Valcent Products Inc. had completed twelve months of the algae vertical bioreactor development program.
In October 2009, Valcent announced that it had achieved a critical milestone with the successful launch of the company's first full scale operating unit of the vertical farming system at the Paignton Zoo Environmental Park, Devon, UK. Valcent EU reported that the company's vertical farming System had been successfully in continuous operation for 60 days, validating both operating costs and yields.
Solix Biosystems
In April 2011, Solix delivered its Lumian AGS4000, a fully integrated, high productivity algae cultivation system to New Mexico State University (NMSU). The Lumian AGS, which is designed using Solix’s proprietary photobioreactor technology, is located at Fabian Garcia Science Center of NMSU. This will be used to optimize algae growth parameters and produce biomass for downstream testing. The Lumian AGS4000 is the first commercial scale algae cultivation system from Solix. The company claims that Lumian AGS4000 will be a reliable and high productivity algae production system and it will enhance the algae research program at NMSU.
3.2.4 Q&A
What is the realistic chance of producing fuel from algae?
In itself, there is no difficulty in making fuel from algae. In fact, you could make algae fuel at home – all you need is to just grow the microalgae in a pond or fish tank, filter the algae using some basic filters (even ordinary filter cloth would do!), dry the biomass and squeeze it using a basic oil press, and you get algae oil which can be turned into biodiesel using a process called transesterification. It really isn’t rocket science. The total cost for getting this fuel done at home could even be competitive with the diesel you get at the gas station.
The difficulty lies in making such fuel in a cost‐effective and sustainable manner when done on a large scale.
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The reason why it costs less when done on a small scale at home is because many crude and inexpensive processes (especially for cultivation and harvesting) are enough for the small amounts of oil required, and also because many hidden costs (cost of electricity and labour costs for example) are not usually taken into account.
When done on a large‐scale, however, the processes for culturing, harvesting and extraction need to be far more sophisticated. Some of these processes, especially for culturing and harvesting, are quite expensive today.
While algae fuels are currently not cost‐effective when produced on a large scale, a number of efforts – both engineering and biological – are ongoing. Some vital breakthroughs are expected by end of 2012, especially in photobioreactor design and cost, and in harvesting methods. These breakthroughs could result in algae fuels being produced at much lower costs.
Has any company succeeded in producing biofuel from algae?
A number of startups have reached a stage where they are producing biofuels from algae, albeit not on a large scale. Here are some examples.
Center of Excellence for Hazardous Materials Management ‐ In July 2008, the organization successfully performed what it called a “commercial sized” harvesting experiment at its pilot‐ scale algae pond. The algae were extracted from 12,000 gallons of water and its oil content was used to produce biodiesel.
In August 2009, CEHMM announced that it was moving its algae biofuels project from pilot scale to the commercial demonstration level. It mentioned that this phase of the project would be in full operation by Sept. 2009.
Sapphire Energy ‐ In mid‐2008, the company said it has succeeded in refining a high‐octane gasoline from algae that is chemically identical to crude oil. In Sep 2009, Sapphire Energy unveiled its plug‐in hybrid electric vehicle using hydrocarbon fuels produced from algae.
Solazyme ‐ The Company has developed a new way to convert biomass into fuel using algae, and the method could lead to less expensive biofuels. Solazyme powered a Mercedes with algal‐based biodiesel at the Sundance Film Festival in Park City, Utah in January 2008.
Aquaflow Bionomic ‐ In December 2008, the company announced that its wild algae have been successfully refined to produce the world’s first sample of synthetic paraffinic kerosene (SPK).
Carbon Capture Corporation ‐ The company operates open algae ponds with a total capacity of 8 million gallons located on an existing 40‐acre Algae Research Center in Imperial Valley, California. Seven 150‐gallon sun‐tube photobioreactors are located indoor. Current production capability is 660 pounds per day of dried algae biomass. (Dec 2008)
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Is any company selling biofuel from algae in the commercial market?
No, not as of May 2011.
When, according to the top companies in this domain, will they be able to produce biofuels from algae on a commercial scale?
The timeline for delivering algae‐based fuel to market varies from one year to 10 years, according to opinions provided in mid 2009. Some indications are provided below:
Algenol ‐ The Company has mentioned that it plans to make commercial scale ethanol from algae by the end of 2009.
Cellana – In 2008, the company announced that its first commercial plant is three to four years away. The company mentioned in 2008 that it has started with 100 hectares, but plans to grow up to 20,000 hectares. In 2009, the company announced it has started work on the design and costing of its first commercial plant. The plant of 1000 ha area is expected to be developed by 2014, according to reports.
LiveFuels – The Company had originally set milestones at 1 million gallons by 2008 and 10 million by 2009. As of mid 2009, the company has said it has set 2010 as the target for producing commercially viable, algae‐based "supercrude".
Solazyme – The Company said in Jan 2009 that it will be capable of producing competitively priced fuel from algae by end of 2011.
As algae oil has the potential to replace fossil fuels, what are the big oil companies doing about algae fuels?
The large oil companies have recognized that algae could be a very important future biofuel feedstock and some have publicly acknowledged this recognition. Some prominent companies have also started exploring algae fuels.
Here are some examples and updates:
• Exxon Mobil – In Jul 2009, Exxon Mobil announced it was investing a potential $600 million into research on algae‐based fuels, through a partnership with Synthetic Genomics, a company that has been a pioneer in commercializing genomic‐driven technologies. This has been by far the single largest investment into algae‐fuels ever, by any type of business or research entity. Exxon announced that the investment will enable Synthetic Genomics to obtain biofuels from algae using its knowledge of and expertise in genetic engineering tools and techniques.
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• Royal Dutch/Shell ‐ Royal Dutch/Shell has a joint venture with HR Biopetroleum and the venture is exploring algae fuels in a plant at Hawaii.
• Chevron ‐ Chevron has a working relationship with prominent algae fuels company Solazyme.
• ConocoPhillips ‐ ConocoPhillips announced in July 2008 that the company had signed a multi‐year research agreement with the Colorado Center for Biorefining and Biofuels (C2B2), a Colorado Renewable Energy Collaboratory research center. The first part of the project will center on creating renewable fuel from algae.
• BP ‐ Since the beginning of 2008, BP has been exploring algae along with other feedstocks such as Jatropha. In Aug 2009, BP announced it was making a $10 million investment in Martek Biosciences. Martek is a leading company in the development of nutritional products from algae. The two companies will work together to use Martek's algae‐based technologies for the creation of sustainable and affordable technology for microbial biofuel production.
Are the researchers who did the Aquatic Species Program (an extensive research program sponsored by the US government) involved in the current efforts?
A number of researchers who had been part of the ASP have begun involving themselves in the field again, though the extent of involvement is not fully clear.
Not surprisingly, the scientists who had participated in the NREL ASP research program are in great demand. They have started exploring the field at NREL itself or in partnership with companies, organizations & universities.
For instance, in 2009, biomass and renewable fuel veteran John Sheehan joined the University of Minnesota’s Institute. Sheehan will serve as the scientific program coordinator for biofuels and the global environment. Sheehan spent nearly 20 years with the U.S. DOE’s National Renewable Energy Laboratory, conducting work on system dynamic models for strategic and policy decision‐making related to biodiesel and ethanol. While at NREL, Sheehan also led research on the production and conversion of algae to biofuels.
Dr. John Benemann was a participant in the Aquatic Species Program and was a principal author of the final report of that program. Among other activities, for the past few years he was a member of the US DOE‐NETL (National Energy Technology Laboratory) "DOE Carbon Sequestration Project Review Committee" and also Manager of the "International Network on Biofixation of CO2 and Greenhouse Gas Abatement with Microalgae" operating under the International Energy Agency "Greenhouse Gas R&D Programme". He is a full time consultant and has his own firm Benemann Associates, and works for numerous companies and research organizations. He is also on the steering committee of the Algal Biomass Organization, a not‐ for‐profit industry association promoting algal biofuels.
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In an interview given in Jan 2009, Al Darzins, a principal group manager at the NREL (where the ASP program was conducted), said that the agency was presently focusing more on using living organisms to convert waste cellulose, such as that from corn stover or switch grass, into ethanol. Algae work was virtually nonexistent at NREL until a few years ago, but the agency had started devoting about $1 million of its budget to algae projects. He also expressed his opinion that the agency should reopen the Aquatic Species Program.
3.3 Bottlenecks & Barriers
This section discusses the key barriers to algae fuels, under the following topics:
• Biggest Challenges • Entry Barriers • Q&A
3.3.1 Biggest Challenges
The real challenge facing the algae industry is the high cost of fuel production from algae. The other significant challenges include:
• Difficulty in optimal strain selection • High capital cost of photobioreactors • High cost of harvesting • Difficulties in genetic manipulation of algae • High capital cost of biomass gasification • Contamination management in open cultivation environments and in waste water/sewage • High operational and capital cost of algae based CO2 sequestration at power plants and other industries • Difficulty in getting high quality scientific talent
Algae Fuel Production Cost
The biggest bottleneck today for algae to become a mainstream biofuel feedstock is the cost of producing fuel from algae. The processes and methods that are used to make Biodiesel and other energy fuels from algae are quite well‐established; however, the total cost of fuel production using any of these methods today is significantly higher than comparative costs for fossil fuels, or for biofuels produced from other feedstock
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Cost range for fossil gasoline/diesel ($ / gal) 2.6
Cost range for non‐algal biofuels ($ / gal) 2.5‐2.9
Cost range for algae biodiesel ($ / gal) 4*‐15
All costs above are for the cost when oil leaves the refinery. The prices at the pump will be significantly higher than these, taking into account taxes, transportation costs and channel margins. If price at pump is X, crude is 0.75X, refining about 0.1X, distribution & marketing about 0.05 X and taxes about 0.1X. Cost calculated with price of crude at a conservative US$60 / barrel *: The lower costs are possible today only with the use of open ponds. However, very large‐scale algae cultivation for fuel in open ponds pose significant challenges and are not yet fully proven to be a working model.
As one can observe from the above table, algae oil prices, based on some data available from the market from pilot scale experiments, cost between two to eight times as much as its competitors.
Why does it cost so much to produce algae?
The following are the reasons:
1. Currently, most algae fuel efforts focus on microalgae, as these have some of the most attractive properties – very high growth rate, high oil yields etc. Microalgae however are not easy to cultivate in open ponds where contamination could inhibit their growth. Hence they need to be grown in controlled environments such as photobioreactors which are extremely costly.
2. Microalgae, owing to their small sizes, present difficulties in harvesting, thus giving rise to relatively high costs for harvesting them.
The above two cost components – cultivation and harvesting – are the primary contributors to the high cost of algae fuel. While harvesting is mostly an engineering challenge, cultivation presents engineering & biological challenges – making it more difficult to solve.
3.3.2 Entry Barriers
Being an industry with few large companies and in which there is no dominant design, the entry barriers for new firms are relatively fewer.
But there are other, more important aspects new entrants should consider:
1. Cost of Talent ‐ Success in this industry in the short and medium term depends on the ability to achieve breakthroughs in scientific and engineering related domains. Hence, very high quality scientific and engineering talents are a must for new entrants wishing
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to make a mark. Acquiring such high‐quality talent could be both time‐consuming and expensive.
2. Necessity of Scale – The end‐products are essentially energy products, and hence any company entering this domain needs to be in a position to scale its operations to operate at national or international levels. Startup companies that are not able to convincingly show that they have the appetite to grow into large or very large companies might not be taken seriously by prospective investors.
3. External Factors – There are significant external factors at play in the energy industry. The price of fossil fuels is one of them. The fossil fuel price is in fact the biggest competition that companies in this industry might face, though it technically doesn’t qualify as competition! The other externality that deserves mention is government policies and incentives. It is well understood that the alternative energy industry needs the support of the government in the short and medium term, in terms of subsidies and favourable tax policies. Adverse changes in these policies could have a dramatic impact on new companies trying to enter this industry.
4. Distribution Channels – While there is no dominant design for the algae oil/fuel domain, there is a dominant design for the fossil oil domain – the Big Oil companies, both international and local. Not only are these companies exceptionally cash rich, they also completely control the current distribution channels for fossil fuel distribution. New entrants will either have to creatively disrupt these existing channels or will have no other choice but to enter into business agreements with the giant oil companies.
3.3.3 Bottlenecks & Barriers ‐ Q&A
Why did the Aquatic Species Program (1978‐1996) fail?
The ASP program was not exactly a failure. The team was successful in producing biodiesel from algae using open ponds; however, the cost of production was much higher than the crude oil prices existing at that time ‐ $12‐$16 per barrel between 1992 and 1996. Hence, the project was deemed uneconomical and was wound up.
Why should the current research succeed when the Aquatic Species Program did not?
For the following reasons:
• The price of crude is much higher now (about $75 per barrel as of Oct 2009) than it was in the mid‐1990s.
• There are many more companies and research institutions working on the problem now, as against just a handful of organizations doing research during the period of 1978‐1996.
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• As noted above, the ASP program was not a failure; rather, it was wound up primarily because of the low cost of crude oil prevailing at that time. This time round, research activities are likely to be far more persistent and better funded than it was for the ASP program.
• There are innovative efforts currently to synergise production of biofuels from algae with bioremediation efforts such as algae‐based CO2 capture at power plants and other CO2 emitting industries, and algae‐based waste water treatment. Such synergistic operations have the potential to significantly enhance the sustainability of fuel production from algae.
Why aren’t the governments worldwide investing much more in this?
Lack of awareness is the most likely reason. While the scientific community and some segments of the business community have realized the potential of algae fuels, the departments of governments around the world responsible for renewable energy have not been fully apprised on this potential.
Fortunately, some of the prominent companies in this field and from the industries likely to benefit most (such as autos, aviation etc) have initiated efforts to increase the awareness. One result of such efforts is the founding of organizations such as the National Algae Association and Algal Biomass Organization
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4. Investments & Returns
4.1 Investments 4.1.1 Lab Stage 4.1.2 Pilot Stage 4.1.3 Commercial Stage 4.2 Returns 4.3 Costs 4.4 Q&A
4.1 Investments
What quantum of investments will be required for a company wishing to explore the algae energy industry? This is one of the main questions for every entrepreneur wishing to explore algae energy possibilities.
In order to answer the question, one needs to consider the various phases involved in algae energy efforts.
Typically, companies venturing into the algae fuels industry go through three stages:
1. Lab stage, 2. Pilot stage, and 3. Commercial stage
The lab stage usually comprises a small team that does research in laboratory conditions. The pilot stage is relatively larger, with experimentation done in real‐world situations. The commercial stage involves large‐scale operations.
It will be difficult to predict the investment required for the commercial stage because there are too many parameters and factors involved that makes any estimate quite meaningless.
For the lab stage and pilot phases, the following are the approximate investments that could be required. These are only indicative estimates, and are not specific to any one energy product.
4.1.1 Lab Stage
The investments primarily include cost of the research team and cost of facilities.
• Members in the research team – 2‐3 • Lab equipments and facilities – A lab with simple equipments for algaculture, harvesting, extraction and conversion to fuel. This stage does not require sophisticated equipments
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or infrastructure. The goal here is to identify optimal algal strains for specific conditions and environments. • Expected duration – 3‐4 months • Estimated cost – $75,000‐100,000 ( Note: This could be as low as US$ 20,000 if it is done in countries where scientific research resources can be had at much lower wages, because the main cost associated with this stage is the cost of scientific personnel).
4.1.2 Pilot Stage
In the pilot phase, a significant portion of the cost will comprise cost of the equipments and infrastructure.
The size and scope of the pilot stage could differ for different companies. There have been algae pilot plants constructed for just 100 sq meters (about 1000 sq ft), and there have been pilot plants at 1 hectare (about 10000 sq m; 100,000 sq ft).
The cost structure can also differ depending on the cultivation system used. An open pond for 1 hectare could have a construction cost of about $150,000 (without land cost), where a photobioreactor for 1 hectare costs about $0.75‐1 million.
Costs could also vary significantly depending on the types of harvesting systems used.
The duration for the pilot stage could be in the range of 1.5 to 3 years.
The workforce required could differ based on the various combinations of the above options. Skilled manpower costs could vary significantly based on where (country / region) the pilot project is implemented.
Owing to all the above it will be difficult to give a definite range for the cost of a pilot plant. For an overall understanding one could however say that it is in the range of US$ 0.5 – 5 million. (The lower limit could be as low as $0.25 million if it is done in low cost countries).
One note of caution about the lower limits provided in the cost estimate above. While technically one could construct a small pilot version in the real world (in say just about 1000 sq ft), it is not entirely clear whether the real aim of the pilot stage (understanding the real‐world sustainability and efficiency of the processes taken from the lab stage) will be satisfied with such small versions.
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Examples of Algae Fuel Pilot Plant Configurations
Company Technology Capacity 8000 gallons and Midwest Research Institute 1000 gallons (MRI) Open Pond & PBR respectively Sapphire Energy Open Pond 22 acres Aquatic Energy Open Pond 30 acres CEHMM Open Pond 25000 gallons HR Biopetroleum Photobioreactor 7000 gallons Hybrid Algae Green Star Products Production System 11000 gallons
4.1.3 Commercial Stage
As mentioned above, it is not possible to provide an investment estimate for the commercial stage because (a) There are too many parameters and aspects involved, and (b) No company has reached a commercialization stage; thus, we do not have any valid data to provide inputs for costs for this stage.
4.2 Returns
As the industry is in its nascent stage, it is difficult to provide estimates for expected returns, pay‐back periods, profit margins and returns on investment.
However, the following can be said:
• Energy and fuel are high‐volume and low‐margin businesses, and hence these will hold true for algae fuels as well. • Non‐fuel end products such as high‐end specialty chemicals and high‐end biopolymers, when combined with fuel end‐products in the product mix, have the potential to provide much higher margins. • Whatever be your desired product, do not expect returns for the first 3 to 4 years after you start – during this period you will be investing in research, experimentations and pilot. • This is a medium‐high risk/ high return industry. If you are concentrating on fuel products the only way you can make considerable profits is by operating on huge scales because the margins are likely to be thin.
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4.3 Costs
The high cost of algae fuels represents the most important challenge for the algae energy industry. This section provides a framework of cost calculations and cost break‐ups that will provide insights on the reasons behind the high cost of algae fuels.
Representative Working Out of Cost of Biodiesel Production from Algae
The total cost of algae fuel = costs for (cultivation + harvesting + oil extraction + transesterification).
We have worked out some indicative costs of algae biodiesel for the various options / combinations. Please note that not all combinations provided here might be effective in real world, as data are still awaited from pilot–stage results.
This estimate provided below is only for biodiesel from algae. While costs for producing ethanol or other hydrocarbons from algae will be different as different processes are involved, the first two stages – Cultivation & Harvesting – are common for all fuels, so these cost estimates can be used for calculating approximate costs of production for those fuels as well.
Cost data are presented in the following modules:
• Yield assumptions – we have made some assumptions of algae biomass yield per hectare, based on the data available and estimates by Oilgae. The yield estimates are different for open ponds and photobiorectors. • Options – A list of options available for the various stages of the algae to energy process • Approximate Unit Cost Estimates – Indicative unit cost estimates for the various options for each stage are provided here. • Cost Esimates for Various Combinations ‐ Based on the above data, cost estimates (in $ per gallon) are made for deriving biodiesel from algae for the various process combinations.
Yield Assumptions
Yield PBR Open Ponds Yield of dry algae biomass g/m2/day 40 20 Yield in T per hectare per year 146 73 Yield of oil from 1 hectare (in gallons 13440 6720 @ 30% by weight of biomass) Notes: algae oil density of 0.86 Kg/l, 3.79 liters = 1 gallon
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Stages & Options
The various stages and the various options available for each stage are provided below
• Algae cultivation can be done in open ponds or in closed photobioreactors • Harvesting can be done by centrifugation, flocculation, flotation or drum filtration • Either expeller presses alone or expeller with hexane solvent extraction can be used to extract oil. • Transesterification is the only method that has been used to convert the oil into biodiesel.
Cost Options Components Cultivation Open ponds Photobioreactor Harvesting Centrifuge Flocculation Flotation Drum Filtration Extraction Expeller Press Hexane Solvent Biodiesel Transesterification Conversion
Note: The categories provided in italics are the various options available under each stage
Cost Estimates for the Various Options under Each Stage
Process Option Levelized cost – Levelized cost ‐ PBR Open Ponds ($ per gal) ($ per gal)
Cultivation 4.46 14.9
Harvesting Centrifuge 3 1.5 Flocculation 2.44 1.22 Flotation 0.43 0.22 Drum Filtration 0.34 0.17 Drying 1.1 1.1 Expeller press 0.17 0.17 Extraction Hexane solvent 0.30 0.30 Transesterification ‐ 0.31 0.31
Notes: The following assumptions were made for the above estimates: • Open pond yields of algae will be about 1g/l/day; for PBR, the corresponding yields will be 2g/l/d
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• Drying costs = 10 cents per Kg of dry algal biomass • Levelized costs = represent the sum of all direct and indirect costs; the actual cost of production • Gal = gallon
The total cost of biodiesel production (sum of the costs for cultivation, harvesting oil extraction, and transesterification).
Levelized cost for each of the 16 combinations Open Pond $ per gal Centrifuge + Expeller Press + Transesterification 9.04 Centrifuge + Hexane Solvent + Transesterification 9.17 Flocculation + Expeller Press + Transesterification 8.48 Flocculation + Hexane Solvent + Transesterification 8.61 Flotation + Expeller Press + Transesterification 6.47 Flotation + Hexane Solvent + Transesterification 6.60 Drum Filtration + Expeller Press + Transesterification 6.38 Drum Filtration + Hexane Solvent + Transesterification 6.51 PBR $ per gal Centrifuge + Expeller Press + Transesterification 17.98 Centrifuge + Hexane Solvent + Transesterification 18.11 Flocculation + Expeller Press + Transesterification 17.70 Flocculation + Hexane Solvent + Transesterification 17.83 Flotation + Expeller Press + Transesterification 16.70 Flotation + Hexane Solvent+Transesterification 16.83 Drum Filtration + Expeller Press + Transesterification 16.65 Drum Filtration + Hexane Solvent + Transesterification 16.78
Observations & Analysis
It can be observed that the costs of algae fuel vary between $6.5 and $18 per gallon, depending on the systems used for cultivation and harvesting.
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Two questions arise:
• Why is it claimed that algae fuel costs over $10 per gallon when there are possibilities to produce it at about $6 per gallon?
• Why should companies consider using photobioreactors for cultivation, and flocculation or centrifuge for harvesting if they are not cost effective?
In answer to these questions, the following should be noted:
• Open ponds can theoretically produce algae fuel at prices lower than $10 per gallon, but there are a number of challenges that companies are facing while growing microalgae in open ponds on a large scale. Consequently, there are no large‐scale results to confirm the success of open pond cultivation of oil‐bearing microalgal strains. Hence, while the photobioreactor‐route is far more costly, it appears to be a more reliable way to produce specific strains of microalgae on a large scale. Similarly, while simple drum filtration is indeed a cost‐effective harvesting method, their efficiencies to harvest microalgae on large scales are very low with currently used techniques.
• All the above costs have been derived based on costs of the constituent stages. In real‐ life scenarios, there could be other hidden costs which are not entirely published or are well‐known at this stage.
4.4 Q&A
If algae energy is a medium‐high risk business opportunity with a number of uncertainties, why should an entrepreneur invest time and efforts into this domain, instead of other biofuel opportunities?
This is a question that has often been asked by entrepreneurs. Why indeed should they spend their time and efforts on a domain that carries more uncertainties and risks than other alternative biofuel opportunities – cellulosic ethanol, biodiesel from Jatropha etc?
Second generation feedstock such as cellulosic feedstock and biodiesel feedstock such as jatropha have good potential in the short term (3‐6 years) and possibly into the medium term (10‐15 years). But their prospects for long term are less clear. The reason is because, even in the best case scenario, these feedstock can only partially replace our dependence on fossil fuels. This is primarily owing to their moderate yields, and restrictions on the areas they can grow in. In addition, the real environmental costs of growing these feedstock on massive scales are not clear either.
Algae are the only feedstock that has the possibility to completely replace the entire world’s fossil fuel requirements, owing to their high yields and the possibility for them to grow in many
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parts of the world and even in oceans! It is also likely that when cultivated on very large scales, algae will leave a much lower environmental footprint than all other candidates.
There is another compelling reason why algae could be the big winner in the medium and long term. There is a critical need for remediation of wastewater and sewage and sequestering of CO2. These are pressing needs that currently require expensive solutions. Bioremediation is a concept by which such cleaning and / or sequestration is accomplished by biological organisms. Bioremediation is a fast growing area that is expected to have excellent future prospects. Algae are possibly the most attractive bioremediation agents, especially for wastewater remediation and for sequestering CO2 – owing to the fact that algae naturally grow in wastewater and sewage, and algae require a lot of CO2 to grow and can be grown next to power plants and CO2 emitting industries.
Thus, algae offer two compelling advantages:
1. Algae alone have the potential to completely replace our fossil fuel dependence with the least amount of environmental footprint, and
2. Algae offer an inexpensive and environmentally friendly solution to remediation and sequestration needs.
The above two advantages make algae one of the most exciting feedstocks to watch for, in the medium and long term.
In summary, while algae energy currently face stiff challenges, algae hold so much promise that no business exploring biofuels can afford not to include algae in its list of choices.
Can a small entrepreneur start an algae fuel venture?
It depends on the goals of the small entrepreneur. If he wishes to keep his business small, starting a company that produces fuel or energy products might not be a great idea because fuel companies might need scale to survive and succeed.
However, there are other opportunities in the algae energy domain that could be more suitable and less risky for those who wish to keep their businesses and operations small. These opportunities have to do with supporting the algae fuel industry ‐ these could be in consulting, providing scientific and operations equipments, implementation support, in business development, and marketing support. Most of these support products and services are less risky than algae energy business, but they do depend on the success of the algae energy as a whole to be successful themselves.
Currently, while there are about 50 companies focusing on producing fuels from algae, there are over 100 companies supporting these efforts in the form of equipment supplies, consulting and implementation. While a few of these supporting companies are startups specifically
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founded to cater to the algae energy industry, most of them provide services to many other companies in related industries – non‐algae biofuel manufacturers, and other renewable energy companies in domains such as wind energy, solar energy etc.
Is it too risky to put in one’s own money?
For the lab stage, it might be difficult to find outside investors. If you have a background in biochemistry or biotech, it is quite possible that you might not need additional full time experts during the lab stage, and this could significantly lower your costs. For the pilot phase, it is best to look for outside investors who are willing to share the risk and the returns. For this phase, it is better to take in venture capital or some other form of equity funding rather than debt funding, given the risk profile of the investment.
What are the types of external financing available?
Both venture capital and private equity funding are available for many renewable energy companies. In addition, in many countries there are government/federal grants.
However, it is unlikely that private equity firms would be interested in algal startups as these investors are more likely to invest in established, growth companies. The most likely funding avenues for algae startups will be venture capital companies or the government. If your company is located in North America or Western Europe, the chances of government funding are also quite bright.
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5. Profiles of Top Algae Energy Companies
This chapter provides the company profiles for the top companies in the algae energy domain.
Backgrounds of Startups Companies in Algae Biofuels
Based on analysis of the key startups in the algae energy sector, and based on interactions with a number of other small aspiring startups in the industry, the following are the aspects of a typical algae startup:
• It is typically started by a small group of people. • Most founders have some kind of a scientific background at least to some extent related to energy or algae. • Most of them start off with their own funds or with angel funds. (This could change as the industry matures). A year or two after they started, quite a few of the startups have been able to secure venture funding. About 35% of the companies focused on algae energy had received some form of external funding ‐ mainly venture funding – as of Jan 2009 • Many of them have had close relationships with the research community even before they started, or form associations with the universities and research communities soon after they start.
Apart from startups, the other group of companies entering / that has entered the algae energy domain comprises established companies who are already operating in the energy/alternative energy/biofuels domain or in domains closely related to algae.
Company Profiles
Algenol 9
Main line of activity: Algae Biofuels Producer Headquartered at: Indianapolis, USA
Algenol Biofuels is an algae‐to‐ethanol company. Its Direct to Ethanol™ technology uses fermentation to convert algae directly from culture, to ethanol.
The firm struck a deal with Mexico‐based BioFields to grow and process algae. The company claimed that Algenol’s system could produce 6,000 gallons of ethanol per acre per year. It signed an $850 million deal with Mexican company BioFields with plans to make ethanol from algae. The company has mentioned that it plans to make 100 million gallons of ethanol in
9 www.algenolbiofuels.com
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Mexico's Sonoran Desert by the end of the 2009. The licensing agreement with Mexico's Biofields reportedly involves a deal to sell the ethanol to the Mexican government. The company believes its seawater‐based process can generate up to a billion gallons of algal ethanol per year.
“Basically we can take in 1.5 million tons of CO2 and convert it into 100 million gallons of ethanol,” according to a statement from a company spokesperson.
Algenol also has an algae library in Baltimore, Maryland, to study the organism that can grow in salt or fresh water. The company is targeting to build algae‐to‐ethanol farms on coasts in the United States.
Since its inception in 2006, the privately funded company has seen $70 million in investments, with zero venture capital money to its name, according to a company statement.
The majority of the money comes from the founders, of whom the majority has made successful exits as former CEOs from the natural gas and pharmaceutical industries.
In July 2009, Algenol partnered with Dow Chemical. The companies announced plans to build and operate a demonstration plant on 24 acres of property at Dow's sprawling Freeport, TX, manufacturing site. The plant will consist of 3,100 horizontal bioreactors, each about 5 feet wide and 50 feet long and capable of holding 4,000 liters. The bioreactors are essentially troughs covered by a dome of semitransparent film and filled with salt water that has been pumped in from the ocean. The photosynthetic algae growing inside are exposed to sunlight and fed a stream of carbon dioxide from Dow's chemical production units
In Mar 2011, Algenol Biofuels Inc. has announced that its parent company, Algenol LLC, recently acquired Cyano Biofuels GmbH, located in Berlin, Germany. Cyano brings extensive experience in producing hybrid algae to make ethanol and green chemicals, and increases Algenol’s research and development capacity while strengthening its access to European expertise in biotechnology and algal research. Cyano Biofuels was founded in 2007 and is located in the Adlershof technology park in Berlin. Cyano Biofuels has strong ties to leading German universities and is a spin‐off from Humboldt‐University.
Process & Technology
Algenol chose from a collection of 10,000 strains of algae, and used molecular biology to enhance certain traits. Its engineers enhanced certain algaes’ ability to make sugar and, through their enzymes, to ferment the sugar and produce ethanol.
The Algenol process occurs in bioreactors that are three‐feet by fifty‐feet and shaped like soda bottles. During the process, algae consume sunlight and more than 90 percent of the system's CO2 through photosynthesis, wherein the sugars are converted into ethanol. The ethanol is
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immediately pumped out and evaporates into the bioreactor which is captured every night. This process overcomes the significant problems other companies face, according to the company.
Highlights
• Algenol is one of the first companies that started focusing deriving ethanol – and not biodiesel ‐ from algae. • Its announcement of direct fermentation of ethanol – straight from culture – is of interest and could hold good potential if it works out well.
AlgoDyne Ethanol Energy Corp 10
Main line of activity: Algae Biofuels Producer Headquartered at: Las Vegas, NV, USA Partnerships: Retail partnership with Canadian GreenFuels
AlgoDyne is committed to developing new initiatives in biofuel by developing and refining inexpensive methods to use cheap and ready available feedstock to produce fuel.
AlgoDyne Ethanol Energy Inc.'s research has led to the development of a new process to harvest significant amounts of biomass from marine algal blooms, which occur in almost all oceans of the world. AlgoDyne believes that its harvesting technology could yield huge amounts of biomass usable for ethanol production at virtually no cost, and this harvesting of harmful algal blooms would ultimately protect the ocean's marine ecosystem. AlgoDyne Ethanol's proprietary micro‐algae‐based (phytoplankton) technology provides a means to produce clean, renewable energy from the continual harvest of biomass from Photo‐Bioreactors. The end result is the production of ethanol, methanol, biodiesel, electricity, and animal feed.
In Mar 2007, the company signed a letter of intent to acquire approx. 3000 acres of agricultural land in Saskatchewan, Canada to grow bioenergy crops and Miscanthus. The company announced that it had discovered that by applying certain aspects of its proprietary enzyme technology gained from its micro‐algae research to grain crops and especially to Miscanthus, the Energy Return on Investment of ethanol from land grown biomass can be increased significantly to a sustainable economic level. AlgoDyne will establish its own biomass distribution network to supply the ever increasing demand for biomass for ethanol production. AlgoDyne's main focus still lies on the development of micro‐algae as the primary source of biomass for ethanol production.
In July 2007, the company launched its retail partnership with Canadian Green Fuels Inc. (an established Canadian Bio‐Diesel company). It has established an expertise in manufacturing
10 www.algodynecorp.com
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high quality petroleum based on canola and soy. They currently retail their own brand of fuel conditioners, chain lubes, cutting fluids and penetrating oils, as well as manufactures their own premium brand of biodiesel. Canadian Green Fuels will be assuming the role of establishing, launching and operating the retail Bio‐Diesel initiatives of AlgoDyne's corporate fueling stations.
Highlights
• The company research into using marine algal blooms as the biomass feedstock is interesting • The company’s proprietary enzyme technology gained from its research on microalgae could increase return on investment for other biomass feedstock as well.
Aquaflow Bionomic11
Main line of activity: Algae Biofuels Producer Headquartered at: Nelson, New Zealand
A New Zealand‐based company, Aquaflow, has set itself the objective to be the first company in the world to economically produce biofuel from wild algae harvested from open‐air environments and to market it.
Aquaflow harvests algae directly from the settling ponds of standard Effluent Management (EM) Systems and other nutrient‐rich water. ABC is focussed on advanced technologies for biofuel production other than traditional methods producing methyl ester biodiesel.
The company’s Marlborough sewage pond details are as follows:
• 60ha of open oxidation ponds. • Serving a population of 27,000 with a mix of municipal and agro‐industrial waste, including a significant wine industry. • Annual water flow of 5 billion litres.
In December 2006, Aquaflow Bionomic Corporation demonstrated how its algae‐based fuel additive works in the standard diesel engine of a production vehicle, outside Parliament buildings in Wellington.
In July 2007 Pure Power Asia (PPA) came on board as a 19.9% ‘cornerstone’ shareholder to Aquaflow. PPA is based in Singapore and aim to take renewable energy throughout Asia.
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In March 2008, the company said it has achieved commercial scale continuous harvesting of wild algae at the Marlborough oxidation ponds. The company also announced that it had commissioned its newly built proprietary biorefinery and made its first machine run.
In December 2008, the company announced that its wild algae has been successfully refined to produce the world’s first sample of synthetic paraffinic kerosene (SPK) converted from compounds derived from Aquaflow’s wild algae. SPK, when blended with petroleum‐based kerosene, can be used to power commercial and military aircraft. The algae were converted using technology from United States‐based UOP LLC, a Honeywell company. UOP utilized its proprietary hydroprocessing technology to convert the sample to SPK and confirmed that the sample meets the critical specifications for SPK including density, flash point and freeze point.
In 2009, Aquaflow Bionomic Corporation's algae fuel will work on upscaling its production to produce commercial volumes of the fuel and aims towards a test flight later in the year.
Aquaflow secured a cornerstone investment from one of Asia’s most active renewable energy companies, Pure Power Asia. Pure Power Global is the parent company for all of the Pure Power businesses and is based in Hong Kong.
Highlights
• Aquaflow was one of the first companies to have a significant focus on cultivating algae in sewage for fuel. • Its tie‐up with Honeywell’s UOP to gain process advantages in refining could make the company’s end product more cost competitive.
Aurora BioFuels, Inc.12
Main line of activity: Algae Biofuels Producer Headquartered at: Alameda, California, USA
Aurora BioFuels, Inc. is a renewable energy company exploring new sources of feedstock for the production of biofuels. In particular, Aurora utilizes microalgae to generate bio‐oil, which can be converted into biodiesel. It said that it has made tremendous progress in developing an end‐ to‐end process for producing bio crude oil from algae
Aurora is supported by a team that includes current and former CEOs of publicly traded companies and Professors from U.C. Berkeley, Stanford and Michigan State University.
Aurora's technology is relatively straightforward on the aquaculture side, and its core intellectual property comes from the lab, where UC Berkeley microbiology Professor Tasios
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Melis developed a genetically modified strain of algae that produces extremely high yield in open ponds.
Aurora Biofuels received a big leg up in the race to develop commercial biodiesel using algae as a feedstock. The startup landed $20 million in a second round of funding from insiders Oak Investment Partners, Gabriel Venture Partners and Noventi, which will allow it to tweak its open pond process for growing algae for processing into biodiesel. With this the total funding comes to $25 million.
In March 2009, Aurora Biofuels unveiled a new management structure to speed the commercialization of its algal biofuels, and has announced an addition to their scientific advisory board, which advises in the development of highly‐efficient algae production.
In August 2009, Aurora Biofuels announced a technological milestone in the company’s path to becoming the premier producer of low‐cost advanced biofuels. Using tools developed in the fields of molecular biology and biochemistry, Aurora Biofuels scientists developed a proprietary process which allows for the superior selection and breeding of non‐transgenic algae. With this novel technique, the company optimized its base algae strains with an increased ability to process sunlight and carbon dioxide into algal oil. As a result, these algae strains can produce more than twice the amount of oil. Optimized algae have been producing oil in Aurora Biofuels’ outdoor pilot ponds for several months, providing strong evidence that these strains will remain robust at the industrial scale and remove more carbon emissions than previously thought possible.
Highlights
• Its core intellectual property comes from the UC Berkeley lab where microbiology Professor Tasios Melis developed a genetically modified strain of algae that produces extremely high yield in open ponds. This research relationship with the lab could be a significant asset to the company.
Blue Marble Energy13
Main line of activity: Algae Biochemicals Producer, Algae Biofuels Producer Headquartered at: Seattle, Washington, USA
Blue Marble Energy (BME) is a Seattle based company generating bio‐chemicals and natural gas from algae and other cellulosic biomass. By focusing on wild algae and plant material, BME has developed an innovative energy solution that produces fertilizer and chemicals as a by‐product.
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In July 2009, Blue Marble Energy has closed its Series ‐ A financing round, and started finishing the build‐out of its pilot facility in the Fremont area of Seattle. With the Series ‐ A funding, the company plans to continue to work on technologies of waste biomass to clean, useful energy and biomaterials. It plans to begin production of target biochemicals for pilot programs early 2010.
Process & Technology
The company has developed algae harvesting, cultivation, and conversion technologies that hold the potential to solve critical problems. By harvesting pollution fueled algae blooms from devastated coastlines, as well as cultivating at waste treatment facilities, Blue Marble Energy has patented microalgae growth technology that integrates directly into existing infrastructure by retrofitting clarifiers. This base technology is also being developed for application as a remediation tool for nutrient uptake in open environments.
Harvesting ‐ Blue Marble Energy has developed environmentally friendly harvesting methodology developed under the Washington state's rigorous environmental standards. BME has a harvesting operation in Washington State and has currently removed 10,000 lbs. of pollution fueled algae for testing and distribution to research partner
Cultivation ‐ Blue Marble Energy has patented microalgae growth technology that integrates directly into existing infrastructure by retrofitting clarifiers. This base technology is also being developed for application as a remediation tool for nutrient uptake in open environments.
BME scientists have devised a conversion system that handles wet biomass, bypassing the need for expensive and energy intensive drying. It is an advanced form of anaerobic fermentation that manipulates microbial environments to yield biogas and bio‐chemical compounds. The system is called AGATE™ (Acid Gas and Ammonia Targeted Extraction) and produces: bio‐ methane, hydrogen, esters, and anhydrous ammonia (nitrogen fertilizer). AGATE™ integrates design efficiencies, using recycled waste heat to power its internal systems.
Highlights
• It was one of the first companies to start focusing on wild algae from oceans for biofuels. • The company’s stated aim of looking at end‐products other beyond fuels (biochemicals, for instance) could set a trend for many others to follow. • The company’s unique conversion system that handles wet biomass, bypassing the need for expensive and energy intensive drying, using an advanced form of anaerobic fermentation is an interesting development.
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Carbon Capture Corporation14
Main line of activity: Algae Biofuels Producer Headquartered at: San Diego, CA, USA
One of the unique ideas that the company is working is in the way it plans to use the deoiled algae cake. While most companies are considering using the algae biomass more as an animal feed or fertilizer, CCC is also considering the possibility of using the deoiled extract for pigments.
Carbon Capture Corporation is one of the founding members of Algal Biofuels Consortium ("ABC"). ABC was created in 2008 under the leadership of Sandia National Laboratories in Albuquerque, New Mexico. ABC aims at providing a formal structure for a public/private partnership focused on addressing the continuing challenges in developing scalable algal biofuels.
Projects
Algae Ponds & Research Center: The Company operates open algae ponds with a total capacity of 8 million gallons located on an existing 40‐acre Algae Research Center which is part of a 326‐ acre research and development facility in Imperial Valley, California. The facility includes the water, power and infrastructure to operate the ponds, and a 13,000 square foot building hosting laboratories, processing facilities, offices and warehouse space. Seven 150‐gallon sun‐ tube photobioreactors are located indoor. Current production capability is 660 pounds per day of dried algae biomass with seven percent or less moisture content, and can be expanded to 2,200 pounds per day (one metric ton per day) using existing ponds and infrastructure. The ponds were designed by Dr. William Oswald of Berkeley, renowned as one of the “fathers” of algae production, and their design has been replicated around the world. The Company produces a variety of algae strains in 42 separate ponds of various sizes, ranging from sixteen 100 gallon ponds to seven 240,000 gallon ponds, for a total “race‐way” pond capacity of 2.7 million gallons.
Pilot Plant: The company's pilot facility uses two Capstone C330 (30 kW each) running on propane and used to generate emissions ‐ resembling those from a natural gas fired power facility ‐ that are fed into one of the two dedicated 240,000‐gallon raceways where Spirulina algae is produced and harvested. In addition to actual production data and costs, the pilot test is expected to provide valuable insight regarding air and water chemistry associated with the process.
Power Plant ‐ Carbon Capture Unit One LLC (CCU1), a fully owned subsidiary of Carbon Capture Corporation, secured a conditional use permit and an authority to construct to build and
14 www.carbcc.com
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operate a 50 MW peaking power plant. Construction has not yet started (as of Dec 2008) and is awaiting the execution of a power contract with one of the local utilities.
Proposed Products from Carbon Capture Corp:
• Carbon Credits from CO2 Sequestration • Fuels o Renewable Diesel o Butanol o Biomethane o Jet Fuel Propellant (JP‐8) • Feeds o Processing deoiled algae meal into feed aggregates and pigments.
Highlights
• The company is considering unique end‐uses for deoiled algae cake, such as for pigments. • The company is looking at producing a range of hydrocarbons from algae – and not just biodiesel.
Center of Excellence for Hazardous Materials Management15
Main line of activity: Algae Biofuels Producer Headquartered at: Carlsbad, New Mexico, USA Partnerships: New Mexico State University, Loas Alamos National Laboratory, US Department of Interior Bureau of Land Management, and City of Carlsbad.
CEHMM was established in May of 2004 has created a range of cutting edge applied research programs including developing technology for using algae as a feedstock for biodiesel, biomonitoring for the H5N1 (avian influenza) and West Nile viruses, and cooperative conservation of species. CEHMM has developed strong partnerships with universities, national laboratories, and private industry. These partnerships include New
Mexico State University, Los Alamos National Laboratory, the U.S. Department of Interior Bureau of Land Management, and the City of Carlsbad, New Mexico.
In July 2008, The State of New Mexico's Energy and Innovation Fund awarded Carlsbad's Center of Excellence about $1.1 million from its $3.5 million war chest for ongoing research projects in
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developing technology to make biodiesel from algae oil. The year before, the Center received $1 million from the fund.
CEHMM uses a proprietary technology that involves membranes to create a very concentrated mixture of water and algae. As of June 2008, the algae have been successfully converted to fuel in lab tests at CEHMM. The organization said in Jun 2008 they felt they were still 18 to 24 months away from doing a major fuel demonstration.
In April 2009, CEHMM announced that they have developed breakthrough technology for growing algae and producing oil from it. The algae were grown in New Mexico in “raceway” type ponds and extraction of the oils was done in Dexter Michigan by SRS, a company who is at the forefront of commercial extraction technology.
The first demonstration was conducted on 2000 gallons of concentrate, and has since been repeated in order to validate the original results. The raw oils extracted from CEHMM’s algae show good purity and viability for fuel production. Industry specialists have long speculated that in order for algae biofuels to become commercially viable, a strain would have to be developed that yielded at least 25% oil. CEHMM is said to be consistently growing algae with twice that oil content.
In July 2009, the center moved its algae biofuels project from pilot scale to the commercial demonstration level. This phase of the project expects to be in full operation by Sept. producing algae that will be harvested and processed into biodiesel fuel. This project has the potential to produce 5,000 gallons of oil per acre per year, according to the executive director of CEHMM.
In Jun 2010, CEHMM and SRS Energy announced a partnership to develop one of the first integrated algae oil pilot production facility. SRS Energy has developed and operates an integrated lipid recovery and product fractionation system. The integration of these two technologies constitutes one of the first contiguous process flows, demonstrating onsite algae to biocrude production at a field site. SRS patent‐pending AlgaFracTM process maximizes product value through optimizing the yield of lipids for fuel and associated co‐products.
Process & Technology
In July 2008, the organization successfully performed what it called a “commercial‐sized” harvesting experiment at its pilot‐scale algae pond. The algae were extracted from 12,000 gallons of water, approximately half the contents of the pond, and its oil content was used to produce biodiesel. Several different membrane and chemical methods have been used to extract the algae. Previous work at the center using filters to concentrate the organisms proved unsuccessful, and the organization said in mid 2008 that they were especially pleased with a method call flocculation which uses chemicals to make the algae clump and settle out of the water. Their July 2008 experiment produced two grams of algae for each liter (0.26 gallons) of water, considered to be quite a dense algae culture.
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CEHMM has built outdoor ponds for growing saltwater microalgae at New Mexico State's Agricultural Science Center in Artesia. Research has begun with bench‐scale tests of cultivating algae in aquariums at Artesia and has progressed to five tanks ranging from 110 to 1,000 gallons each producing algae now. The next stage of research will use two "closed‐loop, raceway‐type ponds each about an eighth of an acre in surface area. Each pond will be able to hold approximately 25,000 gallons of water.
Highlights
• General Atomics/CEHMM Collaboration • June, 2007: Defense contractor General Atomics opened an office in Carlsbad, NM as part of a collaboration with the Center of Excellence for Hazardous Materials Management • Open Pond: CEHMM is constructing outdoor ponds for growing saltwater microalgae on unused, non‐arable land.
Cellana ‐ Shell & HR Biopetroleum16
Main line of activity: Algae Biofuels Producer Headquartered at: San Diego, CA, USA
The Hawaii based company intends to be a designer‐builder of algae biofuels plants and to produce and market renewable fuel feedstock and animal nutritional supplemental protein. Partnering with Royal Dutch Shell in a joint venture called Cellana, they plan to initially build a small research plant but hope to move to a full‐scale commercial plant of 20,000 hectares.
Shell entered into a partnership in 2007 with a Hawaiian company, HR Biopetroleum, which grows algae in seawater ponds to investigate which strains produce the highest yields of vegetable oils. The JV has a demo plant for algal oil in Hawaii
Cellana has a patented process and research expertise from HR Biopetroleum that has been developed over nearly two decades. That work has solved contamination problems that can occur while identifying the best algae species for oil production, says the company. Cellana's pilot plant is producing oil now and a demonstration plant is being built in Kona (Hawaii) to scale it up. Within three years it hopes to have its first commercial plant operating and within six years, another five plants.
HR BioPetroluem’s core technology is a photosynthetic production system that economically grows proprietary algae strains at a commercial‐scale. The production system is unique in that it couples closed‐culture photobioreactors with open ponds in a two‐stage process. Previous attempts at scaling up algae production have used a photobioreactor or open pond individually,
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not coupled. Open pond production, which is needed for rapid algae growth, has historically been hampered by the contamination by undesirable algae strains. Photobioreactors by themselves are unable to produce algae at an acceptable rate and would take up too much room to become commercially viable.
In April 2009, the company announced it had developed a proprietary process called ALDUO™ technology that leverages the photosynthetic power and rapid growth characteristics of microalgae to convert sunlight, CO2, and other nutrients into inexpensive vegetable oils and biomass. Its algae cultivation technology has been demonstrated through a pilot facility on the Kona Coast of the Big Island.
In January 2010, HR BioPetroleum, a member of the National Alliance for Advanced Biofuels and Bioproducts (NAABB) consortium, announced it was participating in a nearly $44 million investment for Advanced Biofuels. It also announced its participation in the $25 million grant awarded to UOP by the U.S. Dept. of Energy for biofuels production
Process & Technology
The key to success is to reduce the residence time in open ponds, where cultures are susceptible to contamination. This can be done only by providing a continuous supply of uncontaminated inoculum in large volume, which requires industrial scale photobioreactors. Some results of experiments done at HR Biopetroleum suggest that even when photobioreactor cultures are maintained under light‐limited conditions that favor relatively low growth rates, they occupy a minor fraction of the area required for the entire cultivation system. The most rapid growth rates occur in the open ponds, which allow for a very short residence time. This results in preventing contamination in what represents the majority of the cultivation system on an area basis.
The coupled system minimizes cost. In a coupled system, photobioreactors provide a continuous source of single‐species culture in ample quantity to inoculate the open ponds, allowing the batch cultures in open ponds to exhaust the nutrient supply in a short time, thus avoiding the perils of contamination by other species.
Highlights
• Combines low cost and the high productivity of algae ponds with the protection of closed‐culture photo bioreactors • Allows contamination‐free monocultures of the most productive algae to be cultivated • Shell being a partner in the company is a significant factor.
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Green Star Products, Inc.17
Main line of activity: Algae Biofuels Producer Headquartered at: Chula Visa, CA, USA Plant location: Glenns Ferry, Idaho, USA Partnerships: Has existing partnerships with biorefineries, algae farms and technology providers
Green Star Products, Inc. (GSPI) is a public limited company involved in the production of renewable clean burning fuels such as biodiesel and cellulosic ethanol and other products including super‐lubricants that are designed to reduce emissions and improve fuel economy in vehicles, machinery and power plants.
GSPI completed its state‐of‐the‐art biodiesel facility in Washington State, which includes its own crushing facility. Two farm coops are its partners and will provide canola seeds to the plant, therefore making the facility totally energy independent from outside sources and does not have to rely on outside feedstocks which have now crippled the biodiesel and ethanol facilities around the United States. This facility represents the strategy GSPI formulated over six years ago to protect itself from unstable commodity prices.
In July 2008, the company announced that its consortium received a signed resolution from Saline County Missouri commissioners to construct a commercial Algae Production Facility in conjunction with an Integrated Biorefinery Complex.
In Oct 2008 the company announced that fabrication work is continuing for its planned two 500‐acre algae to biodiesel commercial production facilities, at its 90,000 sq. ft. fabrication plant in Glenns Ferry, Idaho.
GreenFuel Technologies Corporation18
Main line of activity: Algae Biofuels Producer, Algae Biofuels Support Headquartered at: Cambridge, MA, USA Partnerships: Massachusetts Institute of Technology
Founded in 2001, GreenFuel recycles carbon dioxide from flue gases to produce biofuels and feed. Headquartered in Cambridge, Massachusetts, GreenFuel is a privately held venture‐ backed firm.
GreenFuel's ambitious aquaculture approach comes from MIT and involves partnering with waste gas producers to increase yield by infusing closed pond algae crops with CO2 and other
17 www.greenstarusa.com
18 www.greenfuelonline.com
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greenhouse gases that can boost yield, producing a potential added benefit of reducing waste gas at the source.
GreenFuel Technologies’ Emissions‐to‐Biofuels™ process harnesses photosynthesis to grow algae, capture CO2 and produce high‐energy biomass. Retrofitting fossil‐fired power plants and other anthropogenic sources of carbon dioxide, the algae can be economically converted to solid fuel, methane, or liquid transportation fuels such as biodiesel and ethanol.
GreenFuel's high yield algae farms recycle carbon dioxide from flue gases to produce biofuels and feed, reducing net carbon dioxide production as waste becomes profit. Harvesting algae for biofuels enhances domestic fuel production while mitigating CO2.
The team at GreenFuel Technologies Corporation has developed a bioreactor that reduces NOx and CO2 emissions by trapping them in the algae. This system was tested successfully in an installation at the 20MW Massachusetts Institute of Technology (MIT) Cogeneration Plant (Cogen) plant. This technological innovation is featured in an exhibit at the Museum of Science in Boston, on display since July 2004.
GreenFuel deployed small scale field trials in the US in 2005 and 2006; it aims to commence operation of first full‐scale installations in 2008.
In December 2005 GreenFuel Technologies secured $11 million in the 2nd round of financing from Draper Fisher Jurvetson and Access Private Equity LLC. In April 2006 the company raised a further $7 million from Polaris Venture Partners.
Highlights
• GreenFuel Technologies is one of the pioneers of the algae energy industry. • Its association with the top notch MIT has benefited the company by providing it both the research infrastructure and credibility.
Jun 2009 Update: In May 2009, GreenFuel announced that it was closing operations owing to a number of reasons
Inventure Chemical Technology19
Main Line of Activity: Algae Biofuels Producer Headquartered at: Seattle, WA, USA Plant Location: Seattle, Washington. USA Partnerships: Arizona Public Service, Seambiotic, Imperuim Renewables
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Inventure Chemical Technology was formed to capitalize on the opportunities posed by breakthroughs in algae to biodiesel/ethanol conversion processes. Expertise includes both process conversion and plant design/construction.
Inventure Chemical develops processes that allow biofuel developers to make affordable biofuels a reality with a variety of feedstocks ‐ from algae produced from CO2 emissions to exotic oil seeds and biomass. It also has a specific process for converting algae to biodiesel, ethanol, or specialty chemicals.
The company currently operates a commercial prototype algae biofuel processing facility in Seattle Washington, where it is currently producing biodiesel and ethanol from algae sourced from facilities in Israel, Arizona, and Australia.
Inventure raised $2 million in funding in 2007. One of the biggest backers of the company is Imperium Renewables, the Seattle biodiesel producer.
Processes & Technology
Algae to Biodiesel & Ethanol ‐ The Company’s technology can process a variety of algae species, in various sizes and diverse species ranging from salt water to fresh water species. The technology can also generate biodiesel and ethanol from the same algae biomass.
Focus on CO2 Sequestration Using Algae – The Company has a specific focus on developing processes and technology that facilitate CO2 sequestration at power plants using algae. Inventure Chemical and Seambiotic in Israel announced in June 2008 a joint venture to create biofuels from algae fed by a coal‐fired power plant. Seambiotic, based in Tel Aviv, Israel, has developed an open‐pond algae farming system that is now testing in Israel. Seambiotic has developed and grown its own open pond system. The system will be coupled with Inventure's patent‐pending conversion processes to produce ethanol, biodiesel and other value‐added chemicals. Seambiotic takes CO2 off‐gas from the power plant and uses it to grow high oil content algae. Inventure has technology for harvesting the algae from the ponds and then extracting the useful pieces for biodiesel and ethanol production.
DDG to Cellolosic Ethanol Conversion Technology ‐ With current corn‐based ethanol production, a great deal of low value Dried Distiller Grains (DDG) is created as a by‐product of the process. Inventure has pioneered a process that can convert DDG into valuable cellulosic ethanol.
Specific Services
Inventure also provides support in conducting feasibility studies for analyzing the viability of various feedstocks for biofuel production. The feasibility analysis includes technical feasibility of feedstock, biofuel property analysis, and analysing the feedstock economics.
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Highlights
• Its technology can generate biodiesel and ethanol from the same algae biomass. • Focus on CO2 sequestration using algae at power plants • Also active in the cellulosic ethanol domain • Conducting technical and economic feasibility studies for various biofuel feedstocks is one of the interesting support services that the company offers.
LiveFuels20
Main line of activity: Algae Biofuels Producer Headquartered at: San Carlos, CA, USA Partnerships: Sandia National Laboratories, and other research labs around USA
LiveFuels started as a mini‐Manhattan Project including the core LiveFuels team, consulting engineers and scientists, and an alliance of DOE labs.
The Menlo Park, CA research company describes itself as a mini‐manhattan project with a national alliance of labs and scientists dedicated to transforming algae into biocrude by the year 2010. Their strategy involves developing algae that will thrive in open ponds.
A national alliance of labs and scientists, LiveFuels is dedicated to transforming algae into biocrude by the year 2010. This alliance will work on breeding various strains of algae, driving down the costs of harvesting algae and extracting fats and oils from the algae.
LiveFuels plans to take a different tack, without the bioreactors espoused by many others.
In Oct 2006, LiveFuels Inc. and Sandia National Laboratories joined together for algae Biodiesel research. Under this research, the algae would be grown in ponds and then sold to refiners who could turn it into petroleum. The science comes from Sandia; LiveFuels handles the business side of things.
In May 2007 LiveFuels announced a first round of $10 million, led by David Gelbaum of the Quercus Trust – a major donor to conservation advocacy and environmental organizations.
In August 2009, LiveFuels announced a different approach by feeding algae to filter‐hungry fish, rounding up the fish, and squeezing the oil out of them. LiveFuels thus need not extract algae from water (an energy‐intensive task), build bioreactors, or make carbon dioxide bubblers to turn algae into oil. Instead, the fish are left with the task of making the oil and storing it in their organs. The company said that the process was carbon neutral since the algae suck up carbon from the water, and phosphate from leftover fish bones can be used for fertilizer.
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LiveFuels is testing its process at nine ponds in Brownsville, Texas. If all goes as planned, the company will cart fish to algae blooms in the ocean, where they will be given free rein to produce liquid energy for our cars, buses, and trucks.
Highlights
• The company’s focus on creating strong alliances with research labs and scientists is a noteworthy feature.
MBD Energy (formerly MBD Biodiesel Ltd)21
Main line of activity: Algae Biofuels Producer Headquartered at: East Melbourne, Victoria, Australia Partnerships: Axens, KNM, Thiess Services, Marstel, Algae Link, Free Hills, Loy Yang Power, SKM
MBD was created to develop sustainable green alternatives to fossil fuels by producing biodiesel for transport and industry use as a partial or full replacement of fossil diesel. The company is in the process of building a vertically integrated biodiesel company based on algal oil as feedstock.
MBD was established in 2006 with private funds. Recently, the company has committed itself to have a strong focus in CO2 sequestration at power plants using algae as a feedstock. It is also exploring culturing algae in wastewater.
It is developing an algae feedstock based on the key ingredients of waste CO2, derived from gas or coal fired power stations and, where available, nutrient enriched surplus waste water.
In May 2009, MBD Energy reached an agreement with one of Australia's largest electricity producers, Loy Yang Power, for the planning and provision of a pilot MBD Energy Carbon Capture and Recycling (CCR) plant at Loy Yang power station in the Latrobe Valley, Victoria Australia.
In addition to its project at Loy Yang Power, MBD Energy is working in concert with the operators of a number of major coal‐fired power stations, and other CO2 emitters, to implement solutions that will soon enable broad industrial‐scale deployment of its CCR technology.
In August 2009, MBD Energy announced that it had signed agreements with NSW’s Eraring Energy, and an undisclosed emitter in Queensland to install pilot plants over the next 12 months.
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According to MBD, if pilot trials are successful, it will commence development of a 200‐acre pilot plant on an 80‐acre footprint some time in 2010, for an investment of $21 million. It will then develop a $242 million demonstration‐scale facility.
Process & Technology
The company uses Axens technology, a French company that has developed a 2nd generation technology, called Esterfip‐H for its transesterification process. This technology is operating successfully in France and Sweden, with significant additional plants under construction and on order. According to Axens, the Esterfip‐H process requires neither catalyst recovery nor aqueous treatment steps. Esterfip‐H reportedly exhibits very high FAME yields and produces glycerol at purities exceeding 98%.
MBD's Carbon Capture and Recycling is a premier green house gas reduction solution for use by power stations. Highlights of MBD Energy's algal carbon capture, storage and recycling process include:
• Captured CO2 is recycled into oil‐rich micro algae suitable for oil and meal • 100% of the algae is recycled; 35% as oil for plastics or fuel, 65% for low‐methane stock‐ feed
OriginOil22
Main line of activity: Algae Biofuels Producer Headquartered at: Los Angeles, CA, USA
The Los Angeles, CA, based OriginOil has a focus on producing energy from algae and has been making some interesting strides in developing new technologies for more efficient oil production.
OriginOil’s patent‐pending technology, Quantum Fracturing, is based on the science of mass transfer and fluid fracturing and addresses some of the challenges of industrializing algae oil production. Using Quantum Fracturing, water, carbon dioxide and other nutrients are fractured at very high pressure to create slurry of micron‐sized nutrition‐bubbles, which is then channeled to the algae culture awaiting it in a lower‐pressure growth vessel, the Helix BioReactor, a proprietary bioreactor technology designed by the company. The Quantum Fracturing technology, according to OriginOil, has the potential to significantly increase the efficiency of nutrient intake by algae
The heart of the OriginOil system is the Helix BioReactor™, an advanced algae growth system that can grow multiple layers of algae biomass around‐the‐clock with daily harvests
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The Cascading Production design makes possible continuous daily harvesting of algae without incubation, thereby enabling a vital property of industrialized algae oil production.
Low Cost Oil Extraction: In OriginOil's extraction unit, the flowing algae biomass is first sent through a shielded wave guide system where it receives low‐wattage; frequency‐tuned microwave bursts, weakening the cell walls. Then, Quantum Fracturing is then applied to these pre‐cracked cells to complete the oil extraction.
The company also mentioned an interesting harvesting technique in July 2008. It has a cascading production strategy in place to harvest 90 percent of matured algae, and it uses the remaining 10 percent for the production of more algae.
In July 2009, OriginOil announced that it has succeeded in extracting algae oil on a continuous basis without cell sacrifice using Live Extraction™ technology. This new ‘milking’ process will join the company’s Cascading Production™ technique to create a combined cycle promising new efficiencies.
According to the company, Live Extraction™, or milking is inherently efficient because it achieves continuous production of algae oil without destroying the algae cell. Therefore a single algae cell can produce more oil during its lifetime using lower amounts of energy.
In July 2009, the company also announced a breakthrough Dynamic Control System designed to respond continuously to the algae’s behavior. This invention improves energy efficiency and growth rates by ensuring the right types and amounts of light are used at all times as the algae grow to maturity.
In December 2009, the company agreed to partner with Research Institute of Tsukuba Bio‐Tech (RITB), recently approved for funding to develop algae to jet fuel applications by Japan Science & Technology Agency (JST).
In January 2010, the company announced that ongoing industrial algae experiments in the company had uncovered a constant daily rate of algae production. This Daily Harvest Constant is reached once the algae stabilizes into steady state growth. Algae can be harvested on a daily basis, enabling industrial levels of production. OriginOil researchers have learned that the amount that can be harvested in the organism’s steady state appears to stabilize at a specific amount of algae biomass per day, regardless of the concentration of algae.
In Mar 2011, OriginOil announced it had developed a new method for targeting invading microbes that can kill or damage algae ponds. The company plans to Algae Screen, uses low‐ power electromagnetic pulses to target rotifers, ciliates, and bacteria harmful to algae growth. And the pulses do not harm the algae themselves, according to OriginOil. The electromagnetic
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Process & Technology
Origin Oil’s suite of patent‐pending technologies and process innovations intends to address some of specific challenges in algal oil production. Helix Bioreactor
• Algae growers already know that algae can expand rapidly if space is available. Once fully matured ‐ and the space is filled ‐ the culture will then stabilize and grow very little. If the space was expanded by a factor of ten, for example, then the algae population would explode to occupy this new volume ‐ in as little as a day. This rapid expansion is called the 'log phase,' or 'logarithmic phase,' of growth where cells divide exponentially. Typically, growers incubate an algae population in a smaller vessel and then release it into a larger tank for production, one batch at a time. OriginOil's Helix BioReactor™ growth vessel adds the time‐saving efficiency of combining the incubation vessel and larger tanks into one system. Once the algae matures in the Helix BioReactor™, 90% of the culture is transferred out for extraction, and the remaining 10% 'green' water is purified and returned to the growth tank. That remaining 10% is then allowed to re‐ expand into the Helix BioReactor™, creating a new batch, and the process is repeated. With this system there is no need to re‐incubate each batch: the remaining algae culture is already mature and is ready to re‐enter the log phase after each harvest and replenishment of growth environment. The Cascading production design enables continuous production of algae by harvesting 90% of matured algae and allowing remaining 10% to continue its natural expansive growth to create a new batch. The process lengthy incubation period of new algae culture for every batch and can potentially allow for daily harvest of algae oil and mass.
• Origin Oil’s patent pending system design facilitates large scale algae production through the horizontal and vertical “stacking” of many Helix BioReactors™ into an integrated network of fully automated, portable, and remotely monitored growth units.
• Further, by the use of such modular design, a large number of Helix BioReactors™ can be connected to a small number of extraction units to achieve both economies of scale and full industrialization of algae production.
• Additionally, OriginOil systems can be transported and placed anywhere in the world to operate as fully integrated, round‐the‐clock oil‐producing plants.
Quantum Fracturing
• Tough Cell Wall ‐ To make the entire algae‐to‐oil process viable, OriginOil devised a method for energy efficient algae oil extraction and does not use hazardous chemical solvents. The process of breaking down algae cells to release oil, known as lysing, has
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long represented a challenge — and a final hurdle — for the algae‐to‐oil industry. Algae cell walls are difficult to break down. Mechanical methods are energy‐intensive and often ineffective. Commonly used chemical solvents such as benzene, ether or hexane are toxic and require special handling. Such practices increase operating costs and make it harder to site algae production systems.
• In OriginOil's extraction unit, the flowing algae biomass is first sent through a shielded wave guide system where it receives low‐wattage; frequency‐tuned microwave bursts, weakening the cell walls. Then, Quantum Fracturing is then applied to these pre‐ cracked cells to complete the oil extraction. Quantum Fracturing, when used for extraction, creates an ultrasonic effect where the algae cell breaks down much in the same way that a high‐frequency sound wave breaks glass.
Specific Products
In a natural pond, the sun only illuminates one layer of algae growth, down to about half an inch below the surface. In contrast, the Helix BioReactor™ features a rotating vertical shaft with very low energy lights arranged in a helix or spiral pattern, which results in a theoretically unlimited number of growth layers. Additionally, each lighting element is engineered to produce specific light waves and frequencies for optimal algae growth.
The helix structure also serves as the bioreactor’s nutrient delivery system, through which the Quantum Fractured nutrients, including CO2, is evenly delivered to the entire algae culture, monitored and tuned for optimum growth.
This algae growth environment will allow the algae culture to replicate exponentially — doubling the entire colony in as little as a few hours — making for very efficient, low‐cost, low‐ footprint industrial algae production.
Highlights:
• The OriginOil System addresses traditional algae production problems in both the growth and extraction stages. • The company has been prominent in coming up with a number of innovations including its Helix BioReactor and Quantum Fracturing. • The Cascading Production design makes possible continuous daily harvesting of algae without incubation, thereby enabling a vital property of industrialized algae oil production.
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PetroSun Biofuels23
Main line of activity: Algae Biofuels Producer Headquartered at: Scottsdale, Arizona, USA Partnerships: ElectraTherm
PetroSun is a diversified energy company specializing in the discovery and development of both traditional fossil fuels and renewable energy resources.
PetroSun, through their wholly owned subsidiary Algae BioFuels and industry partner Electratherm, is committed to becoming a worldwide leader in the development and deployment of renewable energy resources.
The company has done an extensive research to determine the utilization of microalgae as an energy source, with applications being developed for biodiesel, ethanol, and bioplastics.
PetroSun is a diversified energy company specializing in the discovery and development of both traditional fossil fuels and renewable energy resources. It has been active in the algal oil domain for the last few years.
The company plans to establish algae farms and algal oil extraction plants in Alabama, Arizona, Louisiana, Mexico, Brazil and Australia during 2008. The algal oil product will be marketed as feedstock to existing biodiesel refiners and planned company owned refineries. PetroSun has its field offices in Shreveport, Louisiana and Opelika, Alabama.
In July 2008 the company’s Board of Directors approved plans to install a pilot plant designed for algae production at an Arizona wastewater treatment facility. This project will be a scaled down version of a commercial algae farm system utilizing the wastewater and associated nutrients from the municipal treatment plant to produce algae as a biofuel feedstock.
In April 2008, the company announced the algae‐to‐jet fuel teaming relationship with Science Applications International Corporation (SAIC). The companies are working to transition algal biofuel technology to the commercial sector for government contracts
In December 2008, the company announced plans to integrate algae systems with catfish farm ponds for commercial algae‐to‐biofuel operations. The company’s BioFuels Aquaculture Lease Program proposes to secure the surface rights of existing catfish farm ponds for the purpose of effectuating its proprietary algae‐to‐biofuels technology in a commercial algae farm system operation. The program provides the farm pond owner with an Advanced Base Rent Incentive, royalty income on a monthly basis from algal oil and algae biomass production and a potential future benefit from a carbon credit program
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PetroSun signed a joint venture in 2008 to develop and operate a 30 Mgy algae biodiesel facility in Coolidge. Construction is projected to commence in the third quarter of this year. In 2007, PetroSun announced a letter of intent to supply 54 million gallons of algal oil to a new 54 Mgy Bio‐Alternatives biodiesel plant in south Louisiana. The initial delivery to Bio‐Alternatives refinery will be in the third quarter of 2008.
In Jun 2009 PetroSun, Inc. announced that the company and the town of Gilbert, Arizona had executed an agreement to commence an algae‐to‐biofuels wastewater pilot program at the Neely Wastewater Reclamation Facility. The plant is operated by Severn Trent Services. The purpose of the program is to evaluate the feasibility of the utilization of wastewater as a source of nutrients and water for the cultivation of algae, and its subsequent processing into feedstock for the production of biodiesel and other products. The town of Gilbert will be offered all biodiesel produced from this pilot program at the actual cost of production and processing during the term of the program.
In October 2009, PetroSun announced update on its domestic Algae‐to‐Biofuels, Algae Derived Co‐Products and Alternative Energy Programs. The future implementation and operation of the commercial algae integrated biorefinery facilities by PetroSun BioFuels in the Gulf Coast Algaculture Program and the pilot scale Arid Raceway Integrated Design was designed in collaboration with the University of Arizona team. The focus of the algae operation is to produce algal oil for conversion to fuel, recognizing however that a major revenue contributor to the program will be the value of the co‐products, including animal feed and fertilizer.
Highlights
• The company’s plan to integrate algae systems with catfish farm ponds for commercial algae‐to‐biofuel operations is an interesting business development strategy. • The company’s announcement in April 2008 about algae‐to‐jetfuel efforts by teaming relationship with Science Applications International Corporation (SAIC) is a strategy that has excellent potential, though there are a few other companies as well that are specifically eyeing the algae‐to‐jet fuel market.
Sapphire Energy24
Main line of activity: Algae Biofuels Producer Headquartered at: San Diego, CA, USA Plant locations: La Jolla, CA, USA
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Sapphire Energy aims to pioneer an entirely new industry category ‐ green crude production ‐ with a focus on algae as feedstock. Sapphire Energy got venture funding in 2008 from The Wellcome Trust, Cascade Investment, ARCH Venture Partners & Venrock.
In May 2009, Cynthia J. Warner, president of Sapphire Energy, testified before the full U.S. Senate Committee on Environment and Public Works Hearing on ‘Business Opportunities and Climate Policy’ to ensure that upcoming Cap and Trade legislation included a proper ‘carbon accounting’ for emerging and proven algae‐based fuel.
Process & Technology
The company has developed technology to genetically modify the algae to produce longer carbon chains, facilitating the refining to gasoline. In mid‐2008, the company claimed it has succeeded in refining a high‐octane gasoline from algae that is chemically identical to crude oil
Sapphire selects and genetically modifies algae to maximize their internal production of lipids, or fats and then squeezes that from algae. It says the oil can be used in refineries like normal crude. Sapphire modifies algae and processes it in a way that avoids the problem of "layering" or the tendency of algae to slow down their process of making lipids once they multiply quickly in a pond, or in specially‐made containers
One of Sapphire's innovations is to genetically engineer pesticide resistance into its algae so that they can be grown in an open pond with some pesticide to kill off unwanted species. That however gives you the problem of release of GM organisms.
In October 2009, Sapphire energy built with the cooperation of a number of partners, a 300‐ acre demonstration Integrated Algal Biorefinery designed to produce renewable gasoline, diesel and jet economically from an algal feedstock.
In December 2009, Sapphire Energy was awarded a $50 million grant from the U.S. Department of Energy as well as a loan guarantee of $54.5 million from the U.S. Department of Agriculture. The San Diego‐based company plans to build a demonstration project in Luna County near Columbus and Deming.
In Mar 2011, agricultural giant Monsanto announced it's signed a deal with Sapphire to collaborate on genetic engineering research that could be applied to both algae and agricultural crops. The research involves identifying traits in algae genes for growth and durability. But the science can also be applied to plants like cotton, soybeans, and corn, according to Sapphire. As part of the deal, Monsanto is making "an equity investment" in Sapphire, but the details of that investment were not disclosed.
Highlights
• The company has a special focus on genetically engineered algae
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• The investment in the company by Bill Gates’ Cascade Ventures catapulted the company into the limelight. • The company has a stated aim of trying to make gasoline – and not biodiesel – from algae
Seambiotic25
Main line of activity: Algae Biofuels Producer Headquartered at: Tel Aviv, Israel Plant Location: Power Station in Ashkelon, Israel Partnerships: Israel Electric Company, Inventure Chemical
Seambiotic was founded in 2003 with an objective to grow and process marine microalgae using a revolutionizing ecologically based environmental system. Seambiotic’s technology and unique know‐how can be profitably exploited in two major areas: Biofuel and Food Additives.
Since its inception, Seambiotic has carried out R&D pilot study at the Israeli Electric Corporation's power station located at the Mediterranean shore near the city Ashkelon, Israel. During the study, new and advanced research methods have been developed for cultivation of various speices of marine microalgae using the power station's CO2 emissions released directly from their smokestacks and which pass through pipelines directly to Seambiotic's open ponds.
Seambiotic was one of the first companies to start utilizing flue gases from coal burning power stations for algae cultivation. Seambiotic possesses unique technology for gas transfer and cleaning, command and control of its concentration in cultivation ponds and its absorption in the algae for energy rich products.
In June 2008, Inventure Chemical (Seattle, WA) entered into a joint venture with Seambiotic to construct a pilot commercial biofuel plant in Israel, using algae created from CO2 emissions as feedstock. The plant will utilize high‐yield oil‐rich algae strains that Seambiotic has developed and grown in its open pond system coupled with Inventure's patent‐pending conversion processes to produce ethanol, biodiesel and other value‐added chemicals.
Process & Technology
Seambiotic has developed a technology that will also harness Omega‐3 oils from marine microalgae.
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Highlights
• Since its inception in 2003, Seambiotic has carried out R&D pilot study at the Israeli Electric Corporation's power station. This has given the company an excellent understanding of the dynamics of CO2 sequestration from power plants. • Its association with Inventure Chemical has excellent synergies that can benefit both companies – Seambiotic’s expertise in algaculture with Inventure’s expertise in refining and biofuel conversion processes.
Solazyme26
Main Line of Activity: Algae Biofuels Producer Headquartered at: South San Francisco, CA, USA Plant locations: Maryland, United States
Solazyme is a synthetic biology company that unleashes the power of marine microbes to create clean and scalable solutions for the renewable energy, industrial chemical, and specialty ingredient markets.
The company has developed a new way to convert biomass into fuel using algae, and the method could lead to less expensive biofuels. Solazyme powered a Mercedes with algal‐based biodiesel at the Sundance Film Festival in Park City, Utah in January 2008.
In December 2005 Solazyme raised $8 million, plus $2 million of debt. The Roda Group led the financing, with participation from Harris & Harris Group and other undisclosed investors. Late 2007, the company received a $2 million grant from the National Institute of Standards and Technology to develop a substitute for crude oil based on algae. In April 2009, a study undertaken by Life Cycle Associates, LLC, using the Argonne National Laboratories GREET model, concluded that full lifecycle greenhouse gas (GHG) emissions from field‐to‐wheels for Solazyme's algal biofuel, SoladieselTM, were 85 to 93 percent lower than standard petroleum based ultra‐low sulfur diesel (ULSD). The analysis also revealed that Solazyme's advanced biofuels resulted in a significantly lower carbon footprint than any currently available first‐generation biofuels.
In Jun 2009, Solazyme received the San Francisco Business Times' Bay Area Green Business Award for Renewable Energy Fuels.
In December 2009, Solazyme made breakthroughs in its “nutritionals” business by using algae to create algae‐based mustard, a milk substitute and even cookies. It is testing products with major food manufacturers and believes it will have products on the market by 2010.
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In Sep 2010, Solazyme arrived at an R&D agreement with Unilever to co‐develop soaps and other personal care products using the Solazyme’ renewable algae oil.
In Sep 2010, Solazyme announced that it had completed delivery of over 20,000 gallons of algal‐derived shipboard fuel to the U.S. Navy, constituting the world’s largest delivery of 100% microbial‐derived, non‐alcohol, advanced biofuel.
In Oct 2010, Solazyme announced it had signed its third development agreement with Ecopetrol, the largest company in Colombia and one of the four major oil companies in Latin America, to analyze manufacturing viability of algae‐based diesel fuel using renewable Colombian feedstocks such as sugarcane and byproduct glycerol. Ecopetrol has a strategic goal to provide at least 450 million tons of fuel from renewable oil sources by 2015.
Process & Technology
Solazyme utilizes proprietary genetic engineering methods to develop and optimize commercially relevant biochemical pathways for production of hydrocarbons (for energy and specialty chemicals) & bioactive compounds.
Solazyme implements a unique algal conversion process that allows algae to produce oil in large tanks quickly, efficiently and without sunlight. The process can employ a variety of non‐food feedstocks, including cellulosic materials such as agricultural residues and high‐productivity grasses including bagasse and switch grass as well as industrial byproducts such as crude glycerol.
The company demonstrated its algae‐based fuel in a diesel car, and in January 2008, it announced a development and testing agreement with Chevron. Its process combines genetically modified strains of algae with an uncommon approach to growing algae to reduce the cost of making fuel. Rather than growing algae in ponds or enclosed in plastic tubes that are exposed to the sun, as other companies are trying to do, Solazyme grows the organisms in the dark, inside huge stainless‐steel containers.
The company's researchers feed algae sugar, which the organisms then convert into various types of oil. The oil can be extracted and further processed to make a range of fuels, including diesel and jet fuel, as well as other products. The process also has significant advantages over a quite different way of using algae to create biofuels ‐ one that makes use of algae's ability to employ sunlight to produce their own supply of sugar, using photosynthesis. In these approaches, the algae are grown in ponds or bioreactors where they are exposed to sunlight and make their own sugar.
In Solazyme's approach, the researchers deliberately turn off photosynthetic processes by keeping the algae in the dark. Instead of getting energy from sunlight, the algae get energy from the sugars that the researchers feed them. Solazyme's process of growing the algae in the dark has a couple of advantages over approaches that use ponds or bioreactors. First, keeping
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the algae in the dark causes them to produce more oil than they do in the light. That's because while their photosynthetic processes are inactive, other metabolic processes that convert sugar into oil become active.
Solazyme owns one issued patent and eleven published patent applications relating to genetic engineering methods, gene sequences and protein sequences that cause microbes to perform various biochemical functions, such as
i. Reduction of Shading in Microalgae ii. Use of Cellulosic Materials for Cultivation of Microorganisms iii. Light utilization alteration of photosynthetic microorganisms
See the complete list of patents for which Solazyme has applied 27
Highlights
Cultivating algae in the dark to produce oil.
Solix Biofuels28
Main line of activity: Algae Biofuels Producer Headquartered at: Fort Collins, CO Plant locations: Durango, Colorado, USA
Solix Biofuels is a direct intellectual descendant of the U.S. Department of Energy’s Aquatic Species Program started in 1978 to explore ways to produce biodiesel from algae. In April 2006, the algae‐based biodiesel gauntlet was taken up by Solix and by August 2006 a first generation prototype had been built, tested, and analyzed, and a second generation prototype was launched.
The Solix team of engineers in Fort Collins, CO is working on a design for a closed algae growth system that is cost competitive with open systems. The company is a developer of massively scalable photobioreactors for the production of biodiesel and other valuable bio‐commodities from algae oil. Its closed photo‐bioreactors allow fossil‐fuel power plant exhaust to be captured through the growing system. The algae growth rates increase in the presence of the carbon dioxide that would otherwise be emitted into the atmosphere.
27http://appft1.uspto.gov/netacgi/nph‐ Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch‐ bool.html&r=0&f=S&l=50&TERM1=solazyme&FIELD1=&co1=AND&TERM2=&FIELD2=&d=PG01 28 www.solixbiofuels.com
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Solix engineers have created systems that automatically adjust for environmental changes such as sunlight and temperature to optimize growing conditions. The Solix system has the ability to capture emissions directly from power plants and factories.
The company mentioned in 2008 that it had developed technology that can cut the cost of growing algae by 90‐95%. The key was its different shaped bioreactor that allowed passive CO2 circulation. Solix's bioreactors, because of their unique designs, allow the CO2 injected into them to 'essentially enter and swirl inside the tank in a relatively passive manner'. This saves money compared to other production techniques in which more active circulation is used. The shape of the bioreactor also plays a part; Solix believes that its large flat shape can increase the amount of light absorbed by the algae.
Solix seed funds were used to sponsor research by CSU faculty and graduate students to identify algae species with the best potential to grow at large scale and produce high yields of fuel and chemical feedstocks, and to develop technology that can bring the process to commercial scale.
Solix Biofuels has backing from a local private investor, and says it plans to develop its technology as far as it can on its own before seeking venture capital. Solix believes it can build a system that‘s competitive on a small commercial scale with between $5 million and $15 million.
In Dec 2008, Solix raised $10.5 million in its first round of outside funding, and has reached an agreement with investors for an additional commitment of $5 million that will be used for building a pilot facility near Durango, Colorado. 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 Fort Collins, Colo. Participating in the round were Southern Ute Alternative Energy LLC. The $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.
In July 2009, the company announced the completion of its Series A funding that includes the international investment group, Shanghai Alliance Investment Ltd. Solix will use the additional funding to complete construction and begin operations at its Coyote Gulch Demonstration Facility, which is expected to be in full‐scale commercial operation by late summer 2009.
In July 2009, Dr. Bryan Willson, co‐founder and Chief Technology Officer of Solix, was named to the recent 2009 list, "Scientific American 10: Guiding Science for Humanity". This inaugural list acknowledges the 10 most influential people in the nation who have demonstrated outstanding commitment to assuring that the benefits of new technologies and knowledge will better humanity. Dr. Willson was named by the editors of "Scientific American" for the technologies he created that provide affordable, clean energy solutions to the developing world.
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Also in July 2009, the company announced the completion of construction and start of algal oil production at its Coyote Gulch Demonstration Facility. Algal oil production began on July 16, 2009 following the inoculation of the facility with microalgae. The Coyote Gulch Demonstration Facility will be in full‐scale commercial operation by late summer 2009. The demonstration Facility is expected to be producing the equivalent of 3,000 gallons per acre, per year of algal oil by late 2009.
In Sep 2009, Solix announced it is making efforts to push its production capacity from its current rate of about 14,000 litres per hectare per year to between 37,000 and 47,000 litres per hectare per year.
In Sep 2010, Solix Biofuels announced that it would be collaborating with BASF to produce specialty chemicals from algae in conjunction with biofuels. The idea of using algae to produce chemicals has been around for a while, with some proposing using algae to produce chemicals that can sell for hundreds of dollars per gallon along with low value biofuels.
Highlights
• The company’s bioreactor technology which enables to cut the cost of growing algae by 90‐95%.
Valcent 29
Main line of activity: Algae Biofuels Producer, Algae Biofuels Support Headquartered at: New York, USA Plant locations: El Paso, Texas, USA
Valcent's science and engineering teams are developing algae cultivation technology to provide renewable, sustainable and economic bio‐fuel feed stocks for the production of ethanol, biodiesel, and jet fuel.
Valcent Products has developed a high density vertical bio‐reactor for the mass production of oil bearing algae while removing large quantities of CO2 from the atmosphere. This new bio‐ reactor is tailored to grow a species of algae that yields a large volume of high grade vegetable oil, which is very suitable for blending with diesel to create a bio‐diesel fuel. Called HDVB ‐ High Density Vertical BioReactor ‐ the technology was developed by Valcent in recognition and response to a huge unsatisfied demand for vegetable oil feedstock by biodiesel refiners and marketers.
The Vertegro system consists of a series of closely spaced vertical bio‐reactors constructed of thin film membranes allowing high levels of light penetration. The system is designed to provide
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maximum sunlight and precisely correct nutrients to each plant. Ultraviolet light and filter systems exclude the need for herbicides and pesticides. Sophisticated control systems gain optimum growth performance through the correct misting of nutrients, the accurate balancing of PH and the delivery of the correct amount of heat, light and water.
In March, 2008, Valcent announced that data from its fully operational field test plant had confirmed commercial production potential with several companies expressing interest to build out commercial plants on a joint venture basis. It announced that its High Density Vertical Vegetable Growing System (VGS) has now been operating over the last six months and has produced leafy lettuce, micro greens, spinach, herbs, mints, beets, strawberries, wheat grass, alfalfa and other grains. It also announced that the research and development team of Valcent Products Inc. had completed twelve months of the algae vertical bioreactor development program.
The HDVG system demonstrates the following characteristics:
• Produces approximately 20 times the normal production volume for field crops • Requires 5% of the normal water requirements for field crops • Can be built on non arable lands and close to major city markets • Can work in a variety of environments: urban, suburban, countryside, desert etc. • Will be easily scalable from small to very large food production situations
Highlights
• Valcent gained prominence because of its unique concept of the growing algae in vertical bioreactor systems.
Complete List of Companies in Algae Energy Domain
1. A2Be Carbon Capture 2. Algae Biosciences Corp. 3. Algaewheel 4. Algatechnologies, Ltd. 5. Algenol 6. AlgoDyne Ethanol Energy Corp 7. Aquaflow Bionomic 8. Aquatic Energy 9. Aurora BioFuels, Inc. 10. AXI 11. Biofuelbox 12. Bionavitas 13. Bioverda (Has a Joint Venture with the Virgin Group) 14. Blue Marble Energy 15. Blue Sun Biodiesel
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16. Bodega Algae 17. BTR Labs 18. Carbon Capture Corporation 19. Cedar Grove Investments 20. CEHMM 21. Cellana ‐ Shell & HR Biopetroleum 22. Center of Excellence for Hazardous Materials Management 23. Cequesta Algae 24. Chevron 25. Circle Biodiesel & Ethanol Corporation 26. Cobalt Technologies 27. Community Fuels 28. Culturing Solutions, Inc 29. DFI Group 30. Earth2tech 31. Enhanced Biofuels & Technologies 32. Euglena 33. Exxon‐Mobil/Synthetic Genomics 34. Fluid Imaging Technologies 35. General Atomics 36. General Atomics 37. Green Gold Algae and Seaweed Sciences Inc. 38. Green Star Products, Inc. 39. Greenbelt Resources Corporation 40. GreenFuel Technologies Corporation 41. Greenshift 42. Hawaiian Electric Company 43. Imperium Renewables 44. Infinifuel Biodiesel 45. International Energy 46. Inventure Chemical Technology 47. Kai Bioenergy 48. Kent Seatech 49. Kuehnle Agrosystems 50. LiveFuels 51. MBD Biodiesel 52. Neste Oil 53. Ocean Technology & Environmental Consulting 54. Oilfox Argentina 55. Organic Fuels 56. OriginOil 57. Patriot Biofuels 58. Petroalgae 59. PetroSun Biofuels
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60. Phyco2 61. Primafuel 62. Renewable Energy Group 63. Revolution Biofuels 64. Sapphire Energy 65. Seambiotic 66. Solazyme 67. Solena Group 68. Solix Biofuels 69. Synthetic Genomics 70. Texas Clean Fuels 71. Valcent 72. W2 Energy 73. XL Renewables – Sigmae
List of Universities Involved in Algae Oil Research
1. Auburn University 2. Arizona State University 3. Brunswick Community College (BCC) 4. California Polytechnic State University 5. Clemson University 6. Cleveland State University, Fenn College of Engineering 7. Colorado State University 8. DARPA 9. Florida Tech University 10. Hawaii Natural Energy Laboratory 11. The National Institute of Oceanography (NIO) 12. National Centre for Mariculture Research, Israel 13. Iowa Power Fund, USA 14. James Cook University, Queensland, Australia 15. Los Alamos National Laboratory 16. Massachussets Institute of Technology MIT 17. Mississippi State University 18. Massey School of Engineering, Wellington, New Zealand 19. Montana State University 20. NASA 21. National Renewable Energy Laboratory 22. Natural Resources Defense Council 23. New Mexico State University 24. Oregon State University 25. Pacific Northwest National Laboratory 26. Sandia National Laboratory 27. Southwest Research Institute
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28. Texas A&M University 29. The Carbon Trust (UK) 30. The Seawater Foundation 31. Western Michigan University 32. University of Adelaide Chemical Engineering 33. University of Arizona 34. University of Arkansas 35. University of California at Berkeley 36. University of California at Davis 37. University of California at San Diego 38. University of Georgia 39. University of Florence, Italy 40. University of New Hampshire 41. University of Texas at Austin 42. University of Virginia 43. University of Washington 44. Utah State University
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6. Investments & Venture Capital
6.1 Quantum of VC Investments 6.2 Companies that have Received VC Funding 6.3 Government & Other Public Initiatives 6.4 VC Perspectives
It is only natural that the venture capital industry should be interested in the algae energy domain – after all, this is the industry that precisely fits their risk and return appetite. For an industry that has such high potential (very high returns) and at the same time tough challenges (medium‐high risk), the venture capital industry has been increasingly offering excellent assistance.
Most algae energy startups have realized that it is critical to seek venture funding beyond the lab stage of their exploration, as they need significant capital for the pilot phase – primarily for acquiring high quality research talent and for setting up the pilot plant infrastructure.
6.1 Quantum of VC Investments
Funding and venture funding activities for algal energy companies have accelerated significantly starting 2008.
Consider this: In 2006, just about $15 million were invested in this industry by venture capital companies (Source: Oilgae estimates). In 2007, this figure rose to $32 million (Source: Cleantech). In 2008, until end of Oct, about $180 million in venture capital money has been raised for algae research, with more than half of this coming in the third quarter of the year alone, according to Cleantech, an industry research group.
In July 2009, ExxonMobil announced a $600 million investment in algal fuel research and development. ExxonMobil’s project is noteworthy in light of the collaborative involvement of Synthetic Genomics which is experimenting with algae genetics to develop strains that produce ever‐higher quantities of oil, reducing the cost and effort required to extract the refinable materials. In May 2010, Synthetic Genomics achieved a breakthrough in implanting a synthetic genome in a bacterium. The company claimed that it plans to use the learning from this success in its algae fuel efforts.
In August 2009, BP also joined the algae fuel club with a $10 million investment in Martek Biosciences.
The main driver for the acceleration of VC activity was of course the high emphasis that investors gave to second and third generation biofuel feedstock. The other driver of algae biofuel VC investments came from the first round of financing Sapphire Energy in 2008, which saw investments from ARCH Venture Partners, along with the Wellcome Trust and Venrock,
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6.2 Companies that have Received VC Funding
Venture capital firms that had made recent investments in algae fuel ventures and the companies they have invested in:
Venture Capital Firms Algae Firms Aardvark Investments SA (www.aardvarkinvestments.com) Cequesta Algae Access Private Equity GreenFuel Technologies Arch Venture Partners (www.archventure.com) Sapphire Energy BIRD Foundation Algatech (www.birdf.com) GreenFuel BlueCrest Blue Marble Energy, Solazyme (www.bluecrestcapital.com) Earth2tech Braemar Energy Ventures (www.braemarenergy.com ) Solazyme Cascade Ventures Sapphire Energy (cascadeventures.netopus.net) Cedar Grove Investments Draper Fisher Jurvetson (DFJ) GreenFuel Technologies (www.dfj.com) Corporation Gabriel Venture Partners (www.gabrielvp.com) Aurora Biofuels Harris & Harris Group (www.tinytechvc.com) Solazyme
I2BF (www.i2bf.com) Solix Biofuels
Lightspeed Energy Partners (www.lightspeedvp.com ) Solazyme
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Noventi (formerly Cypress Ventures) (www.noventivc.com) Aurora Biofuels Oak Investment Partners (www.oakinv.com ) Aurora Biofuels Polaris Venture Partners (www.polarisventures.com ) GreenFuel Technologies Quercus Trust Livefuels Southern Ute Alternative Energy LLC (www.suaellc.com ) Solix Biofuels The Roda Group (www.rodagroup.com) Solazyme VantagePoint Venture Partners (www.vpvp.com ) Solazyme Venrock (www.venrock.com) Sapphire Energy Wellcome Trust (www.wellcome.ac.uk) Sapphire Energy XL TechGroup, Australia (www.xltg.com) Petroalgae
6.3 Government & Other Public Initiatives
Governments around the world have just started recognizing the need to invest in algae research, but there have already been some significant developments in this domain.
USA
Government & other public entities that had made recent investments in algae fuel ventures and the companies they have invested are
• Dept of Defense ‐ DARPA • Dept of Defense – USAF • Dept of Defense – Defense Energy Support Center, USA • Dept of Energy – Small Business Innovative Research (SBIR)/STTR Grants, USA • Federal Labs, USA • Government Labs, USA • US Congress
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• USA State & Local Funding o New Mexico Energy Innovation Fund o State’s Emerging Technology Fund o Iowa Power Fund o Minnesota/Metropolitan Council o Virginia Energy Coastal Research Consortium
UK
The U.K. government has committed between $4.7 million and $8.4 million in initial funding for the Algae Biofuels Challenge, an initiative to accelerate the commercialization of algae oil production as a feedstock for producing biodiesel.
The Algae Biofuels Challenge is managed by The Carbon Trust, an independent company in the U.K. that is funded by the Department for Energy and Climate Change, the Department for Business, Enterprise and Regulatory Reform, the Scottish Government, the Welsh Assembly Government and Invest Northern Ireland. The U.K. Department of Transportation also announced that it will contribute funding. – (Oct., 2008)
Australia
The Queensland state government announced $166,000 government funding for a project to convert sea algae into biodiesel. The Australian‐first project, a joint initiative of James Cook University (JCU) and MBD Biodiesel Ltd, aims to develop a sustainable green alternative to fossil fuels by producing biodiesel for transport and industry. The project would produce 290 million litres (250,000 tonnes) of biodiesel by 2010. – (May 2008 news)
In Aug 2009, the Australian Government announced a research grant of A$2.724‐million (US$2.259 million) to the Algal Fuel Consortium (AFC) under the Department of Resources Energy and Tourism’s Second Generation Biofuels program in Australia. The grant will support the development of microalgal mass cultivation systems to generate biomass from captured CO2 emissions. This will then be used as a feedstock to a pilot‐scale second generation biorefinery for sustainable production of biodiesel and value‐added products. The Australian Government funding will support the construction of 0.4 ha of raceway ponds on Torrens Island adjacent to gas‐fired power stations. This will be one of the largest research biorefineries in Australia with the potential to be scaled up to 15 ha.
6.4 VC Perspectives
The venture capital community has been exposed to algae energy for the past 3‐4 years, having invested in over ten different ventures so far. It is important and instructive for entrepreneurs to listen to their perspectives.
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What are the perspectives of the VC firms?
Think Big
• Venture capitalists like billion dollar ideas, those that can solve very big problems; they like ideas that are disruptive in nature. Algae fuels present an opportunity that has the potential to scale into a very large business, bigger than any other biofuel opportunity. This is what has got the venture capital community keenly interested in this field.
• Some perspectives from Vinod Khosla, a prominent Silicon Valley venture investor ‐ “It’s not cleantech that’s interesting, its ‘main tech’”. By this, he refers to the huge, billion‐ dollar markets provided by traditional industries such as engines, lighting, appliances, batteries, cement, water, glass, gasoline, diesel, and power generation. To address these markets, whether you’re looking at algae biofuels or other technologies, you need to have the following according to Khosla:
o Relevant cost ‐ Energy technologies are only scalable if they’re competitive without subsidies in places like China and India. o Low adoption risk ‐ The only thing that solves the carbon‐reduction problem in transportation is a liquid fuel‐based solution, as against concepts such as hydrogen fuel that require too much development in infrastructure to make them go mainstream.
Think Different
• Whether it is the cost of cultivation using photobioreactors or the most effective harvesting method or many other aspects, the algae to energy processes present unique and tough challenges. The challenges are both biological and engineering in nature. There is a strong feeling in the venture capital community that the companies which have the ability to think completely out of the box have a better chance of overcoming the challenges than those companies that are merely attempting incremental changes to existing processes.
• To break through, Vinod Khosla advises pursuing “black swans,” technical approaches from outside the realm of traditional experience, with gamechanging impact.
• In his advice to startups in the algae energy space, Khosla said, “Don’t try to get to market quickly with a small improvement. Even a good process isn’t good enough; you have to be truly great to compete. That’s the right vein to build an algae company. I’d say we need to work on more fundamental breakthroughs in algae…”
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Second & Third Generation Biofuels
• The first‐generation biofuels have been subjected to increased scrutiny and have been blamed for competing with agricultural land, driving up food prices and damaging the environment. During the last year, various studies examined the impact of biofuels on food and on the environment. Among the most damning were studies published in the Science journal, which concluded that biofuels may cause more greenhouse gas emissions than traditional fuels. The venture capital industry is fully aware of it and hence will be keen on funding initiatives that avoid these problems. To that extent, algae are a good bet.
• Biofuel feedstock such as cellulosic ethanol, which is still being developed for commercial scale, could be a competing solution for ethanol. It does not directly tap potential food sources ‐ but it still faces issues that can impact food prices and the environment. Crops grown for the biofuel using the cellulosic ethanol route still compete with agriculture for fertilizer, water, farm equipment and labor. In this respect, algae scores over cellulosic ethanol as well – a Sep 2008 perspective from a venture capitalist.
• “We're seeing the first generation of biofuel companies not making money or succeeding, and I think some of the investors have gotten gun‐shy about these technologies. But they're still interested in biofuels like algae. Still, there will be a lot of money lost and several investors who won't stay in the sector long term.” – A US east coast venture capitalist.
• “The biofuel space simply got overheated about a year ago and that has caused some hiccups in the public markets. But those traditional biofuel stocks are a stepping stone to more efficient feed stocks.” – another US east coast venture capital company spokesperson
Different Type of Investors
• Alternative energy is the first big global market that isn't being led by West Coast venture capitalists. Clean‐tech deals often require much more capital than West Coast venture firms are used to putting up. The alternative energy investments are hence being led more by the East Coast firms and European VCs. They come at this from more of oil and gas perspective and less from an IT perspective.
Other Perspectives
• According to some venture capitalists, struggles of companies such as Imperium Renewables could be scaring local venture firms away from the biofuels and alternative energy market, at least for the time being. Imperium was one of the most heavily venture‐funded startups in Washington. The company produces biodiesel and has
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endured very tough times of late. Earlier in 2008, Imperium canceled plans for a $345 million initial public offering and in August lost a large contract it had with Royal Caribbean Cruises. That followed a series of layoffs and executive departures. (Sep 2008)
• Vinod Khosla yet again on his rules for investing
• A company should “attack manageable but material problems.” • Its technology should achieve “unsubsidized competitiveness”—which in the case of algae would be prices competitive with oil prices of around $50 per barrel. • He pointed out that algae satisfies all of the above, except for the cost ‐ “I think algae can get above biomass in total gallons per acre, but the reason we haven’t invested is we haven’t believed the plans we’ve seen so far meet the [cost] criteria.”
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7. Business Strategies
7.1 Key Success Factors 7.2 Niche Focus 7.3 Exploring Opportunities in Support Industries 7.4 SWOT Analysis 7.5 Lab Stage & Pilot Stage 7.6 Teams & Expertise 7.7 Monitoring for Breakthroughs 7.8 Things to Avoid 7.9 Deciding the End Product 7.9.1 End Products – Q&A 7.10 Understanding Your Country / Region’s Regulatory and Incentive Environment Better
7.1 Key Success Factors
Scientific Talent
The key success factor for the industry at this stage of its lifecycle is the amount and quality of relevant scientific expertise available with the company. The real challenges facing the industry now (and for the next 3‐5 years) are scientific in nature; hence, fundamental and applied research expertise are the most important ingredients a startup should bring with it.
Financial Resources
A supporting success factor is the extent of funding it has secured or already has with it ‐ breakthroughs in this field will require a good amount of fundamental research that could be quite expensive and long drawn.
7.2 Niche Focus
In trying to derive energy from algae, companies are attempting to solve big challenges such as energy independence. Under such circumstances, some companies have realized that it could make more business and survival sense to attempt to succeed in small ways while they are working on the big problems.
With this mindset, some companies have started making interesting business moves. Many of them have a local, regional or a niche component.
Product‐specific Efforts – Some companies are focusing on specific, niche end products rather than generic biodiesel. An example is Solazyme’s focus on producing bio‐kerosene from algae, which can be used as aviation fuel.
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Focus on Specific End‐user Industries – An example is GreenFuel Technologies’ focus on CO2 sequestration. The company also started work recently on CO2 sequestration for the Holcim cement plant in Spain.
Explore Alternative Markets – Examples of companies considering alternative markets for their efforts are Bionavitas (Water Treatment) and Blue Marble (Biochemicals).
Creating IP Widgets – Creating valuable and niche intellectual property assets could be another method to succeed in this business. As this is an industry that relies on scientific innovations and breakthroughs, opportunities to create IP (especially science‐based IP) could be many, and these opportunities are present in every stage of the algae energy value chain. If a business is able to create intellectual property widgets that fit into the business or technology of a larger company, it has a good chance of getting acquired.
7.3 Exploring Opportunities in Support Industries
If the risk profile of the algae energy does not fit an entrepreneur’s business aspirations, he/she could still be involved in this industry – by investing in industries/sectors that support this industry. Examples of such sectors include photobioreactor design and manufacture, implementation of open and closed raceway ponds, integration of power plant CO2 emissions with an algae cultivation facility, equipments for harvesting & extraction, consulting, research equipments such as microscopes, analytical equipments and more.
7.4 SWOT Analysis
The table below provides a list of strengths, weaknesses, opportunities and threats for the algae energy industry.
Strengths Weaknesses
• Present the only possibility for complete • High risk owing to unproven processes replacement of fossil transportation • High cost of fuel production fuels • Low margins if produced for fuel • Very high rewards for success • Need for huge R&D investments • Large market
Opportunities Threats
• A large number of product possibilities • Established players in the energy • Early mover advantages available for industry could enter the market and those entering now crush the startups • New techniques such as genetic • Other alternative energy sources could engineering could make the production become more cost competitive
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process cost‐effective • Investors might not be willing to wait for a long time for success
7.5 Lab Stage & Pilot Stage
It is strongly recommended that companies entering the algae energy domain should have a laboratory stage and pilot stage before they make any large investments in this field. This is necessitated by the large number of variables that need to be tested – be it is in the strains of algae chosen, the methods of cultivation, harvesting or extraction, or the desired end product. Based on the experiences of the companies that have entered this domain so far, the lab stage could last for about 3‐6 months and the pilot phase could last anywhere between one year and three years.
Objectives of the Lab Stage & Pilot Stage
• Lab Stage
o Experiment with break‐through ideas at this stage – failures do not matter, this is the trial and error stage o Evaluate your new technologies and processes – These evaluations can be for efficiency, sustainability and cost. o Based on the experiments and evaluations, arrive at a complete process / technology that you feel has the best chance of commercialization o Put up a pilot plant which will try to repeat your successful lab experiments in the real world.
• Pilot Stage
o The key objective of the pilot plant is to confirm that what worked in the lab works perfectly in the real world; if it does not, to determine what could make it work. o Try minor variations to your processes during this stage o Put in meticulous monitoring systems to capture all the key intelligence during this stage. Not having this intelligence could mean that there could be flaws in your model which you did not know. This ignorance can be quite costly if the flaw is carried on to the commercial plant stage.
Examples of Pilot Stage Efforts
Aquatic Energy
This company constructed and operated a two‐acre pilot site. Its pilot efforts are at a mature stage.
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The company has presently achieved the following milestones in its pilot efforts (as of December 2008):
• Domestication of proprietary strains of algae with continuous outdoor growth for a period of one year. • A “Process Patent” was filed covering their growth and harvesting techniques. • The pilot stage achieved and sustained the required growth and lipid results necessary for profitable production
Carbon Capture Corporation
The company had the following objectives for its pilot plant, for which one of the aspects was CO2 sequestration:
• Estimation of actual production data and costs • Understand valuable insights regarding air and water chemistry associated with the process.
The company's pilot facility uses two Capstone C330 microturbines running on propane and used to generate emissions ‐ resembling those from a natural gas fired power facility ‐ that are fed into one of the two dedicated 240,000‐gallon raceways where Spirulina algae is produced and harvested.
CEHMM
For its pilot, CEHMM has built outdoor ponds for growing saltwater microalgae at New Mexico State's Agricultural Science Center in Artesia.
Research has begun with bench‐scale tests of cultivating algae in aquariums at Artesia and has progressed to five tanks ranging from 110 to 1,000 gallons each producing algae now. The next stage of research will use two "closed‐loop, raceway‐type ponds each about an eighth of an acre in surface area. Each pond will be able to hold approximately 25,000 gallons of water.
In July 2008, the organization successfully performed what it called a “commercial sized” harvesting experiment at its pilot‐scale algae pond. The algae were extracted from 12,000 gallons of water, approximately half the contents of the pond, and its oil content was used to produce biodiesel.
Several different membrane and chemical methods have been used to extract the algae. Previous work at the center using filters to concentrate the organisms proved unsuccessful, and the organization said in mid 2008 that they were especially pleased with a method call flocculation which uses chemicals to make the algae clump and settle out of the water. Their July 2008 experiment produced two grams of algae for each liter (0.26 gallons) of water, considered to be quite a dense algae culture.
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7.6 Teams & Expertise
The following are the key technical expertise that will be required for an algal energy venture. Please note that each of these disciplines has something in common with many other disciplines in the list, and hence it is possible that some of the scientific experts could have expertise in more than one area.
• Algal Biology / Algal Metabolism • Bioreactor Design & Testing • Biotechnology & Bio‐engineering • Cellular Physiology & Biology • Lipid Chemistry • Marine Phycology • Microbiology • Molecular Biology • Oceanography • Petrochemistry • Plant Biochemistry
Team Compositions for Pilot Phase and Full‐scale Commercial Phase
The difference in expertise required between the pilot phase and the full scale phase will primarily be in terms of additional requirements of business development, commercial and administration talent required for the full scale project.
During the pilot phase, an ideal team will primarily comprise scientific and engineering talent, with a small team for business partnerships and strategy (90% scientific, 10% everything else). During the commercial phase, while the number of people in the science and engineering teams will increase as well, the % increase in the number of personnel required for business development, finanance and commercials, operations/administration will be much higher than that for the science and engineering side. A typical successful full‐scale commercial team will likely have the following composition – 60% ‐ Scientific & Engineering talent, 20% ‐ Business Development & Strategy, 20% ‐ Administration Finance & Support. With time, as the business expands, one can expect the overall % of scientific & engineering talent to come down as the challenge comprises more of business development and commercialization challenges and less of scientific breakthroughs.
7.7 Monitoring for Breakthroughs
It is important for an industry player to continuously monitor the developments and progress of the key players in the industry. As the industry is currently in the scientific research phase, it is imperative to have a constant monitoring for breakthroughs from prominent companies.
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In this regard, the following are companies that merit such monitoring.
• Solazyme – Fermentation in the dark. In Solazyme's approach, the researchers deliberately turn off photosynthetic processes by keeping the algae in the dark. Instead of getting energy from sunlight, the algae get energy from the sugars that the researchers feed them. Solazyme's process of growing the algae in the dark has a couple of advantages over approaches that use ponds or bioreactors. First, keeping the algae in the dark causes them to produce more oil than they do in the light. That's because while their photosynthetic processes are inactive, other metabolic processes that convert sugar into oil become active.
• Sapphire – Genetic engineering. Sapphire Energy, right from its inception, has had a focus on using genetic techniques. The other distinction for the company is that it has a stated aim of trying to make gasoline – and not biodiesel – from algae.
• LiveFuels – Strategy of associating with a number of entities who bring varied strengths. The Menlo Park, CA research company describes itself as a mini‐manhattan project with a national alliance of labs and scientists dedicated to transforming algae into biocrude by the year 2010. Recognizing that the key challenge algae fuels face is scientific in nature, it has focused on forming a strong alliance with research organizations and scientific talent across the US.
• Valcent – Growing algae in vertical photobioreactors. Valcent Products has developed a high density vertical bio‐reactor for the mass production of oil bearing algae while removing large quantities of CO2 from the atmosphere. Called HDVB ‐ High Density Vertical BioReactor – the technology was developed by Valcent in recognition and response to a demand for vegetable oil feedstock by biodiesel refiners and marketers. The Vertegro system consists of a series of closely spaced vertical bio‐reactors constructed of thin film membranes allowing high levels of light penetration
• Aquaflow Bionomic – Process of growing wild algae in sewage and wastewater. Aquaflow harvests algae directly from the settling ponds of standard Effluent Management (EM) Systems and other nutrient‐rich water. ABC is focused on advanced technologies for biofuel production other than traditional methods producing methyl ester biodiesel.
• Blue Marble – Harvesting and producing fuel products from wild algae blooms in the ocean. Blue Marble Energy (BME) is a Seattle‐based company generating bio‐chemicals and natural gas from algae and other cellulosic biomass. By focusing on wild algae and plant material, BME has developed an innovative energy solution that produces fertilizer and chemicals as a by‐product.
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• Solena – Algae biomass gasification technologies. Solena produces microalgae using CO2 that is then used for plasma gasification technology. Solena’s gasified technology results in production of electricity that is completely emission free.
7.8 Things to Avoid
• Getting in Without Being Updated ‐ Don’t enter the industry without being updated of the latest developments. Get yourself acquainted with the key industry updates for the last few years. This investment in time alone will ensure that you avoid some costly mistakes. • Skipping the Pilot Phase ‐ Don’t go full‐scale without a pilot; and don’t start the pilot phase without at least a brief lab phase prior to that. • Failing to Assess the Project’s Risk Profile – Do not enter the industry without realizing that this is a medium to high‐risk, high return industry. So, you should be convinced that you have the appetite and can afford to take the risks before you commit yourself to this effort. Do not enter with the mindset of making some quick short‐term returns. It simply is not going to happen. • Not Having A Scientific Research Team ‐ Do not venture into this assignment without scientific expertise to support you. The challenge is primarily scientific, so don’t have your team full of business and management talent alone – it should be leaning heavily towards scientific talent, at least in the first couple of years.
7.9 Deciding the End Product
How do you decide which is the best energy end‐product from algae? Should you too consider biodiesel because most of the companies are considering it? Or is it a good idea to explore much less common products like biobutanol?
There are three important aspects on which you can base your decision:
• Cost • Background and Expertise ‐ Any special processes / technology based on your expertise or past experience • Readiness of Market – Is there a ready market for the product? What is the current size of the market?
Cost ‐ Ultimately, your decision on which end‐product to focus on depends on the cost of the end product. Most energy products have only a limited scope for product differentiation within their product category (gasoline is gasoline, whoever supplies it). Which means price will be the most crucial aspect of your product – and hence the cost of production for that product.
It is hence recommended that your decision factors in cost as one of the most important decision‐making parameters – if not the most important parameter.
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Background and Expertise ‐ The second factor is your background and expertise. Does your company have a special scientific background or expertise that will enable you to be a producer of the desired end‐product at a low–cost and in very large volumes? Are there synergistic benefits your existing business has with algae‐based energy products which you can exploit? Do you wish to produce the end‐product in a country in which certain types of costs – for instance land costs in developing countries ‐ could be a deciding factor for the most desirable end‐ product?
Readiness of Market ‐ The third aspect to consider is the readiness of the market to immediately start using the end‐product. To give an example, consider hydrogen. While hydrogen is considered by many as the future transportation fuel, the market is not yet ready for hydrogen‐based transportation. Such a market scenario makes hydrogen relatively unattractive as an end‐product, at least for the short and medium term.
The aspects mentioned above are the key aspects you and your team need to ask and answer before you can decide on the most attractive energy end‐product from algae.
7.9.1 End Products – Q&A
Does hydrogen have a realistic chance of making it big in the short and medium run as a transport fuel?
No. Hydrogen does not have a realistic chance of being a significant transportation fuel in the short and medium run (for the next 10‐15 years).
Hydrogen storage, the high reactivity of hydrogen, the cost and methods of hydrogen fuel production, consumer demand and the cost of changing the infrastructure to accommodate hydrogen vehicles are the key bottlenecks to transition to a hydrogen economy.
• Hydrogen Storage ‐ Hydrogen must be stored at extremely low temperatures and high pressure. A container capable of withstanding these specifications is larger than a standard gas tank. • Hydrogen is extremely reactive, is combustible and flammable. These pose extra safety burdens on the use of hydrogen. • Another problem for hydrogen fuel is consumer demand and the cost to change all gasoline filling stations and vehicle production lines into hydrogen. Oil companies will not build filling stations until the hydrogen cars are on the market, and hydrogen cars might not become mainstream unless oil companies build the infrastructure!
Is any company producing or trying to produce hydrogen or methane from algae?
As of May 2011, a number of universities and a small number of companies are doing research on producing hydrogen and methane from algae. However, neither methane nor hydrogen is expected to be commercially produced by any of the prominent companies in this field for the
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foreseeable future. For instance, The Baltic EcoEnergy Cluster had previously commenced a project to produce biogas with high methane and hydrogen content from algae and cyanobacteria. The algae will be harvested from the Gulf of Gdansk and the Vistula submersion. The project is expected to be complete in 2013, the organization announced in Dec 2009.
Can algae biomass or the deoiled algae cake be directly used as fuel for combustion?
Yes. The algal biomass comprises three main components – carbohydrates, proteins and lipids. Once the lipids have been extracted the left‐over cake is primarily composed of carbohydrates and proteins.
Thus, both the algae biomass in itself and the algae cake left over after oil extraction can theoretically be used for direct combustion fuel.
However, more economic analyses need to be done to determine if combusting algae or deoiled algae cake is the best method to derive energy. This is because both the biomass and deoiled cake have proteins in them which will be lost if combusted. The cake also has alternative uses – in fertilizers, pharmaceuticals, and as animal feed.
7.10 Understanding Your Country / Region’s Regulatory and Incentive Environment Better
Many governments around the world have provided general and specific pronouncements/mandates in the ir alte rnative and ren ewable ene rgy strategies. It will be useful for the entrepreneur to be fully aware of these policy statements, mandates and supporting incentives.
Some of the important updates to watch out for:
• Biofuels blending mandates • State & federal grants for the alternative energy industry • Taxes • Subsidies
Please also ensure that you identify and are in touch with the relevant government bodies and related associations for your country / region.
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Government & Other Public Mandates & Initiatives
Use and Blending Share Targets (T) and Mandates (M) For Liquid Biofuels That Can Be Met By either Ethanol or Biodiesel
Country Type Quantity or blending share Comments
Australia T 350 million liters by 2010 Indicative target
Voluntary but could Victoria T 5% by 2010 become mandatory 2% by 2005; 5.75% by 2010; 10% by 2020 target still under EU T 2020 discussion 2.5% by 2006 rising to 5.75% by Austria M 2009 Belgium T 2.5% by 2005, 5.75% by 2010 Czech republic T 3.7% by 2005, 5.75% by 2010 Estonia T 2% by 2005, 5.75% by 2010 2% by 2008, 4% by 2009, 5.75% by Finland M 2010 France M 7% by 2010; 10% by 2015 Greece T 0.7% by 2005, 5.75% by 2010 Hungary T 0.6% by 2005, 5.75% by 2010 Ireland provides tax 0.06% by 2005 (not applicable exemption within a Ireland T thereafter) quota Italy T 1% by 2005, 2.5% by 2010 2% by 2007, gradually rising to Netherlands M 5.75% by 2010 Latvia T 2% by 2005, 5.75% by 2010 Lithuania T 2% by 2005, 5.75% by 2010 Luxembourg M 2% from 2007 onwards Poland T 0.5% by 2005, 5.75% by 2010 Portugal T 2% by 2005, 5.75% by 2010 Slovakia M 2% by 2006, 5.75% by 2010 1.2% by 2006, gradually rising to 5% Slovenia M by 2010 3.4% by 2009, rising to 5.83% by Spain M 2010 Sweden T 3% by 2005, 5.75% by 2010
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United 2.5% by 2008, 3.75% by 2009, 5% by Kingdom M 2010 Of which 0.25 billion 2.78% by volume of gasoline gallons (0.95 GL) must be consumption in 2006 (4 billion cellulosic ethanol in gallons, or 15 GL); 7.5 billion gallons 2013. Credit rate varies USA (federal) M (28 GL) by 2012 by feedstock. Iowa T 10% by 2009; 25% by 2020 Source: Global Subsidies Initiative based on country reports, September 2007
Canada
The Canadian government has made the necessary legislative amendments (Bill C‐33) to be able to establish a national renewable fuels mandate in the gasoline pool and in diesel fuel by 2010.
The mandate the government is proposing in its notice of intent is for an annual renewable content of five percent in the gasoline pool by 2010, and a two percent requirement for renewable fuel in diesel content by 2012, upon the successful demonstration of renewable diesel fuel under a range of Canadian climatic conditions.
European Union
EU Member States Goals for the Use of Biofuels as Transportation Fuel (% of Total Fuel Use)
States 2008 2009 2010 Austria 5.75 5.75 5.75 Belgium 5.75 Bulgaria 2 3.5 5.75 Cyprus Czech Republic 2.45 3.43 5.75 Denmark 5.75 Estonia 5.75 Finland 2 4 5.75 France 5.75 6.25 7 (6.25) (6.25) Germany 5.25a 6.25a Greece 4 (5) 2.50a (5.75) 3a Hungary 4.50b 5.75 Ireland 2.24 3.2 Italy 2 3 5.75 Latvia 4.25 5 5.75
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Lithuania 5.75 Luxembourg 5.75 Malta The Netherlands (5.75) 4a Poland 4.6 5.75 Portugal 5.75 5.75 5.75 Romania 3 4 5.75 Slovakia 4 4.9 5.75 Slovenia 3 4 5 Spain 1.9 3.4 5.83 Sweden 5.75 UK 2.50b (3.75) 3ab (5) 3.50ab EU 5.75 Note: (a) Updated or proposed mandate, previous mandate bracketed, (b) volume based (c) biodiesel only, NA – not available
China
China provided a total of RMB 780 million (US$ 115 million, roughly US$ 0.40 per litre) in biofuel subsidies in 2006. Total support is expected to reach approximately RMB 8 billion (US$ 1.2 billion) by 2020.
China is drafting biodiesel blend standards and is expected to impose a 5 percent blending target by the end of the year (2007), and is looking at potential target dates for a 10 percent mandate. The Chinese government has set a consumption target of 200,000 tons of biodiesel for 2010 and 2 million tons for 2020.
Japan
In Japan, fuel excise taxes are expected to be waived on biofuels as of April 2008 in a new scheme to reduce Japanese dependence on oil.
For blended fuels, taxes would be reduced in proportion to the amount of biofuels blended. Under the planned tax system, biofuels mixed with gasoline will be exempted from the gasoline tax ‐ currently 53.8 yen (US$0.48) per liter ‐ in proportion to the amount of biofuels included. For example, gasoline that contains 3% of bioethanol will be taxed 1.61 yen less per liter than pure gasoline. At present, there is no tax break for gasoline mixed with biofuels, regardless of the ratios involved.
The government is also expected to make imports of gasoline additive ethyl tertiary butyl ether tariff‐free, removing the current 3.1% import tax.
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The Japanese government has set a goal of replacing 0.6 percent of gasoline fuel with biofuels by 2010.
Australia
Australian biofuels policies and impacts (based in 2007 news & data)
• The major biofuels policy at the national level is a 350 million L target by 2010.
• There is no nationally mandated volumetric or blending mandate specifically for biodiesel. The State of Victoria, however, has set a voluntary biofuels target of five per cent of the fuel market by 2010 (400 ML per year).
• Assistance currently provided to producers includes: o A production grant of 38.1 c/L, which fully offsets the excise paid on biofuels o A capital grant that effectively provides around 1c/L in additional assistance over the lifetime of the plant.
• Assistance to biofuels is scheduled to fall to 12.5 c/L for ethanol and 19.1 c/L for biodiesel by 1 July 2015. A banded excise system will impose rates on different fuels, classified into high, medium and low energy groups. This strategy broadly keeps constant the excise payable per kilometer travelled by vehicles using the fuel.
• Domestic producers are eligible for the excise rebate from the Australian government. Ethanol imports are subject to both a general tariff of 5% (zero if imports are from the USA) and the full excise of mid‐energy fuels of 25 c/L. This differential treatment of domestic and imported sources amounts to a tariff on imports reducing the competitive pressures on domestic producers, and may lead to higher biofuel prices for Australian businesses and households.
• Recent changes to the fuel taxation system have had a major impact on the biodiesel industry.
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8. Future Trends
8.1 Perspectives 8.2 Predictions 8.3 Future Research Needs ‐ Thoughts from the ASP Team
8.1 Perspectives
While in theory algae have an excellent potential to be a significant feedstock for our transportation fuels, at the same time it has to be admitted that we are only in the beginning stages of exploiting algae for fuel.
During the period 2004‐2009, when the first group of the algae fuel companies started cropping up, most companies were solely looking at producing biodiesel from algae. Since 2009, industry observers could see a shift in business strategy where many of these companies have started looking at other fuel opportunities (ethanol, jet fuel etc.). Further, having realized that it could take longer to sustainably produce fuel from algae, many companies have started looking at other short‐term options such as producing non‐fuel products from algae, and wastewater remediation using algae. Such experimentations are expected to continue for the next 2‐3 years.
The following assessments can be made:
1. Producing energy products such as biodiesel and ethanol from algae is not rocket science. In fact, even a backyard inventor can make oil and biodiesel right from his home, right now. The bottleneck is really the high cost of the processes.
2. There are two types of challenges to be overcome with respect to processes: (1) Engineering challenges, and (2) Biological challenges. Examples of engineering challenges include making photobioreactors, raceway ponds and centrifuges more efficient. Biological challenges include increasing oil yields from algae, genetic engineering of algal strains and facilitating specific strains of algae to survive in habitats that are not natural to them.
3. It is expected that many engineering challenges could be solved within the next 2‐3 years. It is more difficult to predict when the biological challenges will be overcome, though good progress is being made on aspects such as genetic engineering of algae strains. Experts predict that experiments on overcoming the biological challenges could take more than 5 years (beyond 2015).
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Some Interesting Perspectives
• Long waiting period ‐ It has also been admitted by many prominent companies that producing algae fuel at a cost that is competitive with that of fossil fuel will take years. The general consensus is that it will take at least until 2015 for the world to see a company produce algae fuels at large scales and at competitive costs.
• Algae fuels are not the silver bullet ‐ A prevalent thought is voiced by Doug Henton, CEO of Solix Biofuels, who commented that “at the end of the day, no one single solution will address our domestic energy demands", but that focus on feedstock such as algae could be a vital component of creating a renewable fuel economy.
• Bioremediation potential ‐ Another recurrent theme among top executives in the industry is the prospect of CO2 abatement and wastewater remediation by algae. These prospects are likely to enable algae fuel production to become more sustainable.
• Distributed production ‐ Riggs Eckelberry, the CEO of OriginOil in Mar 2010 opined that algae fuels could see a more distributed production infrastructure quite different from the current centralised fossil fuel production set up.
• Benefitting local economies worldwide ‐ A top executive from the company Live Fuels felt that the algae fuel industry could benefit local economies by creating more local jobs, as against the current fossil fuel economy in which significant number of jobs are present in only those countries that have large oil deposits.
Here's a balanced and a more holistic perspective from Prof. Charles Trick, the Beryl Ivey chair for ecosystem health at the University of Western Ontario and a specialist in aquatic sciences and microbial ecology, has to say: "Innovative algal biofuel industries must deal with the historical views of algae — from being important to the food chain, to damaging coastal resources when in excess, to a marketable alternative to extracted fuels. Diversity is the beauty of the algae…”. He sees an important role for algae that looks beyond the fuel tank. "Even if biofuel production by algae is not considered commercially viable, these cells could be selected to produce unique biomolecules , converting sunlight energy into specialty products that might normally be created through traditional petrochemical techniques." Analysis of predictions from many other experts shows a similarly cautious forecast.
8.2 Predictions
Predicting specific developments in the algae energy field – such as the cost of algal oil, the best strains, or the most cost efficient harvesting process – is difficult. It could be far more useful if one were to attempt predicting the broad trends that could shape the industry in the next 5‐10 years. This is what we attempt to do in this section.
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While the above predictions are somewhat general in nature, we attempt a more specific set of predictions. It must be pointed out that predicting specific developments in the algae energy field is very difficult. Hence, these inputs should be considered as more of intelligent guesses.
Based on all the facts and happenings, the following are what we predict: (May 2011)
• In the next 1‐2 years (by the end of 2012), one or more companies will be able to prove that they can indeed produce fuel from algae in a cost‐effective manner in laboratory conditions. • In the next 4‐5 years (by the end of 2015), one or more companies will be able to start supplying fuel from algae commercially, though possibly not on a nationwide basis. • In 8‐10 years from now (by 2020), fuel from algae could start meeting a significant part of our energy needs.
The following table provides our predictions on how the algae energy industry will pan out during the next 10 years, until about 2020. For each of the periods discussed, analyses and predictions are made on the following aspects:
• Challenges – The key challenges faced during this period • Highlights – Ideas/concepts most likely to flourish • Dark Horses – Possible surprise winners
Years Challenges Highlights Dark Horses 1‐3 years • Optimal strain identification • Growing algae in sewage • Growing algae in the & wastewater dark • Devising cost‐effective methods for cultivation • A large number of • Really creative sparks and harvesting companies venturing coming from garage into the algal fuel field, & backyard inventors trying to “strike gold”
• Governments realizing the algae biofuel potential and devoting higher resources for research
• Companies will start producing non‐fuel by products or co‐ products that can be sold to currently existing markets.
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3‐5 years • Persisting with efforts even • Ethanol from algae • Hydrocarbons from when there are no algae gasification & immediate payoffs • Very low cost catalytic synthesis photobioreactors • Innovative scientific techniques and out‐of‐the‐ • Lower costs for biodiesel box thinking required to production processes overcome what looks insurmountable • Growing algae next to power plants • Innovative business and revenue models that factor in ground realities
5‐10 • Taking algal fuel from being a • New progress from fields • Ability to produce algal years small player to being a such as genetic fuel from micro‐ significant contributor to engineering & biotech refineries, making global energy consumption each household a • Hydrogen from algae potential producer of • Need for mature algal fuel! management to ensure • Breakthroughs in marine that companies evolve into algae cultivation for • Methane from algae competitive businesses. fuel
• Some successful firms starting to dominate the algal fuel landscape
8.3 Future Research Needs – Thoughts from the ASP Team
The ASP (Aquatic Species Program) program conducted by the NREL was an 18‐year, $ 25 million program that evaluated algae for CO2 sequestration as well as a biofuel feedstock. The program was wound up in 1996 primarily because it was felt that the cost of producing oil from algae was too high considering the then prevailing crude oil prices.
The ASP team had the following observations to make regarding the future directions for algae energy research.
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While we have provided the summary of the recommendations owing to the fact that it was one of most comprehensive research programs to date, please bear in mind that the program was concluded in 1996 – some of the suggestions hence might be no longer relevant.
Observations
• The results of this program’s demonstration activities have proven the concept of outdoor open pond production of algae.
Future Directions
• Place less emphasis on outdoor field demonstrations and more on basic biology. • Much work remains to be done at a fundamental level to maximize the overall productivity of algae mass culture systems. The bulk of this work is probably best done in the laboratory. • While it is important to continue a certain amount of field work, small scale studies and research on the basic biological issues are clearly more cost effective than large scale demonstration studies.
Take Advantage of Plant Biotechnology
• We have only scratched the surface in the area of genetic engineering for algae. With the advances occurring in this field today, any future effort on modifying algae to increase natural oil production and overall productivity are likely to proceed rapidly. The genetic engineering tools established in the program serve as a strong foundation for further genetic enhancements of algae.
Start with What Works in the Field
• Select strains that work well at the specific site where the technology is to be used. These native strains are the most likely to be successful. Then, focus on optimizing the production of these native strains and use them as starting points for genetic engineering work.
Maximize Photosynthetic Efficiency
• Not enough is understood about the theoretical limits of solar energy conversion. Recent advances in our understanding of photosynthetic mechanisms at a molecular level, in conjunction with the advances being made in genetic engineering tools for plant systems, offer exciting opportunities for constructing algae which do not suffer the limitations of light saturation photoinhibition.
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Set Realistic Expectations for the Technology
• Projections for future costs of petroleum are a moving target. Expecting algal biodiesel to compete with such cheap petroleum prices is unrealistic. Without some mechanism for monetizing its environmental benefits (such as carbon taxes), algal biodiesel is not going to get off the ground. • Look for near term, intermediate technology deployment opportunities such as wastewater treatment. Excessive focus on long term energy displacement goals will slow down development of the technology. • A more balanced approach is needed in which more near term opportunities can be used to launch the technology in the commercial arena. Several such opportunities exist. Wastewater treatment is a prime example. The economics of algae technology are much more favorable when it is used as a waste treatment process and as a source of fuel.
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9. Interested? Next Steps
9.1 Organizations 9.2 Algae Collection Centers 9.3 Algae Culture Collection Centres – from World Federation for Culture Collections 9.4 Ask Oilgae
Given the newness and complexity of the domain, those wishing to explore this industry further will have a need to network with others in the industry. This chapter provides lists of associations & algae collection centers associated with the algal energy industry. It is hoped that the contents of this chapter will enable interested entities to take practical steps quickly.
9.1 Organizations
Country Association Website/Email National Algae Association The Woodlands, Texas 77381 www.nationalalgaeassociation.com USA American Assn. of Algae Biofuel Producers California www.scipiobiofuels.com Algal Biomass Organization Seattle, WA 98104 www.algalbiomass.org
Central Salt & Marine Chemicals Research India Institute Gijubhai Badheka Marg, Bhavnagar‐364002, Gujarat, (INDIA) NA Natural Environment Research Council UK (NERC) Swindon www.nerc.ac.uk The International Development Research Canada Centre (IDRC), Ottawa, ON, Canada (Regional Offices located world over ) NA International Center for Living Aquatic Resources Management (ICLARM ) Japan J. Aoyama, Ocean Research Institute University of Tokyo, Japan NA National Research Centre for Australia Environmental Toxicology (EnTox) Queensland, Australia NA Centre d'Etude et de Valorisation des France Algues, (Study centre for the valorization of algae), 22610 PLEUBIAN NA
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9.2 List of Algae Culture Collection Centres
Country Centre Mode of ordering
Australia CSIRO Microalgae Research Centre http://www.cmar.csiro.au/microalgae/supply.html Fax or Mail University Of Toronto Culture Collection Online, Fax and http://www.botany.utoronto.ca/utcc/ Phone Canada Canadian Centre For Culture Collection http://www.botany.ubc.ca/cccm/ Mail, Phone or Fax Culture Collection of Algae of Charles University of Prague http://botany.natur.cuni.cz/algo/caup.html Mail, Phone or Fax Czech Culture Collection of Algal Laboratory ( CCALA ) Republic Institute of Botany, Academy of Sciences of the Czech Republic www.butbn.cas.cz Online Roscoff Culture Collection http://www.sb‐roscoff.fr/Phyto/RCC Online France The Biological Resource Center of Institute Pasteur http://www.pasteur.fr/ip/portal/action/WebdriveAct ionEvent/ Online CCAC culture collection of University of cologne http://www.ccac.uni‐koeln.de Online and offline Culture Collection of Algae (SAG) at the University of Göttingen http://www.epsag.uni‐ goettingen.de/html/paymentetc.html Online and offline Germany Alfred Wegener Institute ‐ http://www.awi.de/en/research/research_divisions/ biosciences/biological_oceanography/diatom_centre /collection/ Online and offline Phiipps University Marburg http://www.staff.uni‐ marburg.de/~cellbio/welcomeframe.html Online and offline
Japan National institute of environmental studies http://mcc.nies.go.jp/aboutOnlineOrder.do Online
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Marine Biotechnology Institute Culture Collection http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?831 Not specified IAMCC www.iam.u‐tokyo.ac.jp Not specified World Federation of culture collection http://www.wfcc.info/datacenter.html Not specified Culture Collection of Algae and Protozoa – http://www.ccap.ac.uk/ Online & Offline
UK The Plymouth Culture Collection of Marine Algae http://www.mba.ac.uk/culturecollection.php Fax Scandinavian Culture Centre for Algae and Protozoa http://www.sccap.bot.ku.dk/ Not specified University of Texas Through online http://www.sbs.utexas.edu/utex/Search.aspx shopping cart Carolina, http://www.carolina.com/product/living+organisms/ protists/algae/anabaena,+living.do Online The CCMP National Center http://ccmp.bigelow.org/ Online ATCC Online, Fax & http://www.atcc.org/CulturesandProducts Phone Chlamydomonas center USA www.chlamy.org Online Center for Algal Microscopy, Bowling green state university http://www.bgsu.edu/departments/biology/facilities /algae/html/marine.html Not specified CCMEE – http://cultures.uoregon.edu/request_culture.htm Online Duke university, Biology Department http://www.biology.duke.edu/support/index.html Not specified Dunaliella Culture Collection at Brooklyn College. http://www.dunaliella.org/dccbc/orderinfo.php Not specified
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9.3 Algae Culture Collection Centers Country wise – from World Federation for Culture Collections
Mode of Country Centre Ordering University of Queensland Microbial Culture Fax or phone Collection, Department of Microbiology http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?13
Australian National Reference Laboratory in Fax, phone or
Medical Mycology mail
http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?42
CSIRO Collection of Living Micro‐algae, CSIRO Fax, phone or
Marine and Atmospheric Research mail
http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?532
Murdoch University Algal Culture Collection Fax, phone or
http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?598 mail
Australia Microbiology Culture Collection, University of Fax, phone or New South Wales mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?248
Algensammlung am Institut fur Botanik, Fax or email
Universitat Innsbruck
http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?505 Austria
Brazilian Cyanobacteria Collection ‐ University of Phone or Sao Paulo, University of Sao Paulo email http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?844
Marine Microalgae Culture Collection, IOUSP Fax, phone or Brazil http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?728 mail
Freshater Microalgae Collection Cultures, Phone, fax or University Federal of Sao Carlos mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?835
Collection du Centre de Recherche en Phone, fax or Infectiologie, Universite Laval mail Canada http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?861
North East Pacific Culture Collection, University Phone, fax or Oilgae ‐ Home of Algae Energy‐www.oilgae.com
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of British Columbia, Department of Botany mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?535
University of Alberta Microfungus Collection and Phone, fax or Herbarium, University of Alberta mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?73
University of Toronto Culture Collection of Algae Phone, fax or and Cyanobacteria, University of Toronto mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?605
China Center for Type Culture Collection, Wuhan Phone, fax or University mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?611
Collection of Marine Biological Germplasm, Phone, fax or Institute of Oceanology, Chinese Academy of mail Sciences http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?794
National Center for Medical Culture Collections, Phone or fax National Institute for the Control of China Pharmaceutical and Biological Products http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?123
Freshwater Algae Culture Collection, Institute of Phone, fax or Hydrobiology ,Chinese Academy of Sciences mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?872
Freshwater Algae Culture Collection, Institute of Phone, fax or Hydrobiology ,Chinese Academy of Sciences mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?873
Culture Collection of Algae of Charles University Phone, fax or in Prague, Department of Botany, Faculty of mail Czech Science, Charles University, Prague http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?486
Scandinavian Culture Collection of Algae & Phone, fax or Protozoa, Department of Biology, University of mail Denmark Copenhagen http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?935
India Biological Nitrogen Fixation Project College of Not specified Oilgae ‐ Home of Algae Energy‐www.oilgae.com
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Agriculture, Mahatma Phule Agricultural University http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?448
National Collection of Industrial Microorganisms, Phone, fax or National Chemical Laboratory (CSIR) mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?3
Food and Fermentation Technology Division, Phone, fax or University of Mumbai, Dept. of Chemical mail Technology http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?562
VISVA‐BHARATI CULTURE COLLECTION OF Phone or ALGAE, VISVA‐BHARATI CENTRAL UNIVERSITY email http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?931
Algotheque du Laboratoire de Cryptogamie, Phone, fax or Museum National d'Histoire Naturelle mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?792
ALGOBANK, Universite de Caen Phone, fax or http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?796 mail
Nantes Culture Collection, Nantes University Phone, fax or http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?856 mail
Pasteur Culture Collection of Cyanobacteria, Phone or fax Institut Pasteur (Unite de Physiologie Microbienne) France http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?481
Roscoff Culture Collection, Station Biologique de Phone, fax or Roscoff mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?829
Culture Collection of Algae at the University of Phone, fax or Cologne, Botany Department mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?807
CCCryo Culture Collection of Cryophilic Algae, Phone, fax or Fraunhofer IBMT mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?940
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Sammlung von Algenkulturen at University of Phone, fax or Goettingen, Albrecht‐von‐Haller Institute for mail Plant Science http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?192
Sammlung von Conjugaten Kulturen, Universitat Phone, fax or Hamburg mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?480
Biotechnology Culture Collection Institution Phone or fax http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?632
ICBB Culture Collection for Microorganisms and Phone, fax or Cell Culture mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?842
Indonesia Indonesian Sugar Research Institute, Pusat Phone or fax Penelitian Perkebunan Gula Indonesia http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?630
Institute of Technology Bandung Culture Phone or fax Collection, Institute of Technology Bandung http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?44
ABRIICC Agricultural Biotechnology Research Phone, fax or Institute of Iran Culture collection mail Iran http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?843
Centro di Studio dei Microorganismi Autotrofi ‐ Not specified CNR Italy http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?147
IAM Culture Collection Phone, fax or http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?190 mail
Japan Collection of Microorganisms, RIKEN Phone, fax or BioResource Center mail Japan http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?567
Microbial Culture Collection at National Institute Phone, fax or for Environmental Studies mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?591
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Marine Biotechnology Institute Culture Phone, fax or Collection, Marine Biotechnology Institute mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?831
The Republic collection of microorganisms Phone, fax or Kazakhstan http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?907 mail
Korea Marine Microalgae Culture Center Phone, fax or Korea http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?894 mail
Department of Biochemistry Phone, fax or Malaysia http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?765 mail
Pakistan Type Culture Collections Phone Pakistan http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?753
Culture Collection of Baltic Algae at the Phone, fax or University of Gdansk mail Poland http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?914
Algoteca de Coimbra Phone, fax or Portugal http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?906 mail
Coleccion Nacional de Cepas Microbianasy Phone, fax or Cultivos Celulares mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?500
Industrial Culture Collection Phone or mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?48 Mexico Pathogen Fungi and Actinomycetes Collection Not specified http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?121
Coleccion de Cepas Microbianas Not specified http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?99
Algal Culture Collection Not specified http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?444
Philippines Industrial Technology Development Institute Phone or fax http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?503 Microbial Culture Collection Phone, fax or http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?39 mail
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Philippine National Collection of Microorganisms Phone, fax or http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?620 mail
Algae Culture Collection of SiberiaBOROK Phone, fax or http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?936 mail
The Collection of algaeCALU Phone, fax or http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?602 mail
Collection of Algae in Leningrad, St. Petersburg, Phone, fax or State University mail Russian federation http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?461
Culture Collection of Microalgae IPPAS Phone, fax or http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?596 mail
Peterhof Genetic Collection of Microalgae Phone or fax http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?641
Mircen Afrique Ouest Not specified Senegal http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?53
Department of Genetics, University of Bratislava Phone, fax or Slovak http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?657 mail
National Bank of Algae Phone, fax or Spain http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?837 mail
University of Jaffna Botany Not specified Srilanka http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?619
Department of Applied Biology, Faculty of Phone, fax or science mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?698
BIOTEC Culture CollectionBSMB Phone, fax or Thailand http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?783 mail
Bacteriology and Soil Microbiology BranchCHULA Not specified http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?491
Microbiology Department Faculty of Science Not specified
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http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?511
Department of Biology, Faculty of Science Not specified http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?688
Institute of Food Research and Product Phone, fax or Development, Kasetsart University mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?676
Microbiology Section, Chiang Mai University Phone, fax or (MSCMU) mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?692
Soil Microbiology Research Group, Division of Soil Not specified Science, Department of Agriculture http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?703
TISTR Culture Collection Bangkok MIRCEN Phone, fax or http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?383 mail
Ege ‐ Microalgae Culture Collection Phone, fax or Turkey http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?845 mail
Culture Collection of Algae and Protozoa Phone, fax or http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?522 mail
Philip Harris Biological Ltd.PLYMOUTH Not specified UK http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?508
Plymouth Culture Collection Phone, fax or http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?128 mail
American Type Culture Collection Phone, fax or http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?1 mail
Provasoli‐Guillard National Center for Culture of Phone, fax or Marine Phytoplankton mail USA http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?2
Carolina Biological Supply Company Phone, fax or http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?530 mail Agricultural Research Service Culture Collection Phone, fax or http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?97 mail
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The Culture Collection of Algae at the University Phone, fax or of Texas Austin mail http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?606
Herbarium of Kharkov University (CWU) ‐ Phone, fax or MicroAlgae Cultures Collection mail Ukraine http://wdcm.nig.ac.jp/CCINFO/CCINFO.xml?886
9.4 Ask Oilgae
If you are interested in taking the next steps, you might have the following questions (or other questions related to these):
• Are there consultants I can talk to right away?
• Where do I find the experts who can set up a lab for me?
• Where can I find experts who can set up the pilot phase for me?
• Where can I find experts who can implement the Biodiesel plant for me? Fermentation to ethanol plant?
We’d request you to send in your questions such as the above to Oilgae, by sending an email to [email protected] . We will do our best to assist you in this.
You might also want to know about our Comprehensive Oilgae Report, which covers every aspect of the algae energy industry in‐depth, and will be useful to those who wish to explore the algae energy business further. You can find a preview of the report here ‐ http://www.oilgae.com/ref/report/report.html
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List of Tables
1. Introduction to Algae Energy 1. Percentage Dry Weight of Oil Content in Various Crops. 2. Typical Yields in US Gallons of Biodiesel Per Acre. 3. List of Algae Energy Companies and Proposed End‐Products 4. Various Parameters Showing the Relativity between Open Ponds vs Closed Bioreactors
2. Size & Scope of the Algae Business Opportunity
1. Revenues of Top 5 Oil Companies (2009, US$ Billion) 2. Sample of Products from Microalgae 3. Prominent Producers of Microalgae Products 4. Annual World Ethanol Production by Country (Millions of Gallons) 5. Hydrogen Current Market Size & Growth 6. Market Size of the Primary Hydrocarbon Fuels 7. Products Derived from Algae and Their Values 8. Market Size for Algae Products 9. Summary of Availability and Cost of CO2 Sources 10. Projected Global Energy Demand and CO2 Emissions, 2000 To 2020 11. Global Carotenoid Market Value by Product 2007 & 2015 12. Cosmetics Market Size Forecast – Overview
3. Real World Status of Algae Energy Projects
1. Approximate Number of Companies Directly Involved in Producing Fuels from Algae 2. Age of Algae Energy Companies ‐ 2009 3. Algae Fuel Production Cost
4. Investments & Returns
1. Examples of Algae Fuel Pilot Plant Configurations 2. Yield Assumptions 3. Various Stages and the Various Options Available for Each Stage 4. Cost Estimates for the Various Options under Each Stage 5. Total Cost of Biodiesel Production
5. Investments & Venture Capital
Venture Capital Firms and the Companies They have Invested in
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6. Business Strategies
1. SWOT Analysis for the Algae Energy Industry. 2. Use and Blending Share Targets (T) and Mandates (M) for Liquid Biofuels That Can Be Met by Either Ethanol or Biodiesel 3. EU Member States Goals for the Use of Biofuels as Transportation Fuel
7. Predictions
1. Challenges, Highlights and Possibilities
8. Interested? Next Steps
1. List of Organizations 2. List of Algae Culture Collection Centres 3. Algae Culture Collection Centers Country Wise – from World Federation for Culture Collections
Oilgae ‐ Home of Algae Energy‐www.oilgae.com