The Future of Algea - Off-Take Production

The future of algae is finding someone willing to pay you to play with it.

I've talked to dozens of start-up entrepreneurs with dreams of phytoplankton business. All these business models with the hopes of developing a new crude oil for the next century. The "crude dreams" of oil production from an endless uber-productive super-algae that would feed the humanity protein as well as feed our insatiable vehicles carbohydrates distilled into ethanol and fats reacted into biodiesel.

The big issue though. How do you pay for the capital cost of a algae bio-reactor? The device that will take water, light, CO2 and make the bugs into an industrial input. Will angels and VC pay for the magical devices that will make algal goo. This goo in turn being cut, distilled, processed, reacted and made into the endless variety of products that we currently source from petroleum.

Deep pockets in this market though are tough to come by. What is now looking apparent is the need for someone already paying to deal with algea. A current cost stream begging for a better solution.

One such industry is commercial fish farms. To that end I came across a recent article that caught my eye. Though this is not a unique idea its still one to watch. What makes it innovative is the fact that the technology might actually work. In the word of biofuels technical talk is cheap and demonstration is worth millions in Federal funding.

From an article from Greenbang.com:

Under PetroSun’s BioFuels Aquaculture Lease Programme, participating farm operators would receive a rent incentive and monthly royalties in return for access to their pond algae. In future, farmers could also gain additional benefits from a carbon credit program, the company said.

PetroSun (a leader in algae technology in the US) has announced what I would call an interesting and very viable business model. To co-locate with fish farms that have an algae maintenance concern. Instead of these farms paying the internal cost to deal with algal growth they will get a return for partnering with PetroSun to create value from the biological reality association with commercial aquaculture.

Algae's Potential Makes the Washington Post

Check it out at WashingtonPost.com. See the article titled A Promising Oil Alternative: Algae Energy.

Algae might just become the next hydrogen. The future fuel with the most potential. All it takes is public awareness, which bring policy interest, which brings soundbite politicians, which then brings research dollars, which then brings breakthroughs.

There has been alot of interest in algae to date. All that is left is it to be that holy grail substitute for petroleum to ensure the demonstration projects go easy.

Asia Looks to Algae for CO2 Sequestration

Covered at Wired.com, and reported by the Associated Press.

Asian scientists are looking at seaweed farming as a potent tool for carbon sequestration. The article covers the basics. Seaweed grows fast, seaweed is already used in food production, seaweed has a good deal of potential as a next generation biofuel feedstock, and seaweed may take a lot of energy to harvest.

What makes this proposed algae use different than the others I've posted? This is done in the ocean and not in a closed system. So instead of a pure, scientifically controlled strains of algae they would just go for whatever takes off in the Ocean. Not exactly a measurable sure bet beyond the fact that CO2 will be used in the growth of the algae strain that takes off.

Not mentioned. The fact that large stands of algae could cure dead zones effected at the mouth of large rivers (the Mississippi and gulf of Mexico). This same use of algae could have longterm effects on the ecosystems they are grown in (meaning potential longterm environmental concerns).

Something about algae always reminds me of nuke power. Easy to understand, a great deal of potential, but for some reason the true commercial projects never seem to happen. Something about this proposal just looks like a litigation magnet.

Green Star and the "Food vs. Fuel" Debate.

I saw this press release in the Biobased News.

Recently a UN report blasted the effect biofuels would have on food (commonly referred to as the "Food vs. Fuel debate"). From what I understand the biggest criticism being hoisted towards ethanol production's push on recent corn prices. In rebuttal, Green Star Products issues a press release citing soy as an example of a Food and Fuel opportunity.


In short = Green Star blasts ethanol from corn, points to soy as a good feedstock to be developed in farming rotations, and that algae has a huge potential future to make all these issues moot (note that Green Star also has high hopes for algae).

The coolest fact in the press release:

For each bushel (60 pounds) of soybeans produced only 10 pounds of extracted oil is used in making biodiesel. The other 50 pounds (the soy meal) is used to feed the hungry of the world as one of the best high protein foods available.

Progress on the Algae Front

Algae Link announces a new type of algae photobioreactor (or what I call algae growing tubes). Shipped as a sheet and folded into a tube when it arrives. Making it the least expensive to ship, store, and construct (or so the Press Release says).

Algae hobbyists, scientists, and inventors rejoice.

Just a mention. The big hurdle with algae is keeping the strain you farm clean. There are so many strains of algae and its so prevalent everywhere in the world its always the case for an unexpected (and less productive/non productive) strain to pop up in your algae system. When a manufacturer or inventor starts talking about a nano-tech filter that guarantees algae purity - that's when to start listening.

PetroSun Issues Algae-to-Biofuels Update

Read the Press Release at the Biobased News.

The important info from the Press Release:

PetroSun plans to produce 180,000,000 of algal oil (that's right that many zeros).

This production number is for the year starting 2009.

The algae production plants are expected to be completed in 2008 in the proposed states of Alabama, Louisiana and Arizona.

PetroSun plans to sell this crude oil tracking the price of petroleum crude.

PetroSun is notable because the company has a background in Oil and Gas development and made the cross-over move to biofuels production in recent years.

My thoughts on algae:

Its way easier said than done.

Its way easier done than done right for that matter.

The issue being genetic pollution. Algae is nearly impossible to get as a consistent strain. Therefore from what I understand algae's real promise is as a scrubber or grey water cleaner.

My money is on algae technologies that do something (scrub emissions, pollutants, clean industrial grey water, etc....). Algae will be paired with biofuels only as a non-foodgrade biofuel feedstock as a waste stream offtake partner.