Algae Biofuel -Biofuel Of The Future?

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Algae are tiny biological factories that use photosynthesis to transform carbon dioxide and sunlight into energy so efficiently that they can double their weight several times a day.

As part of the photosynthesis process algae produce oil and can generate 15 times more oil per acre than other plants used for biofuels, such as corn and switchgrass. Algae can grow in salt water, freshwater or even contaminated water, at sea or in ponds, and on land not suitable for food production.

On top of those advantages, algae — at least in theory — should grow even better when fed extra carbon dioxide (the main greenhouse gas) and organic material like sewage. If so, algae could produce biofuel while cleaning up other problems.

"We have to prove these two things to show that we really are getting a free lunch," said Lisa Colosi, a professor of civil and environmental engineering who is part of an interdisciplinary University of Virginia research team, recently funded by a new U.Va. Collaborative Sustainable Energy Seed Grant worth about $30,000.

With the grant, the team will try to determine exactly how promising algae biofuel production can be by tweaking the inputs of carbon dioxide and organic matter to increase algae oil yields.

Scientific interest in producing fuel from algae has been around since the 1950s, Colosi said. The U.S. Department of Energy did pioneering research on it from 1978 to 1996. Most previous and current research on algae biofuel, she said, has used the algae in a manner similar to its natural state — essentially letting it grow in water with just the naturally occurring inputs of atmospheric carbon dioxide and sunlight. This approach results in a rather low yield of oil — about 1 percent by weight of the algae.

The U.Va. team hypothesizes that feeding the algae more carbon dioxide and organic material could boost the oil yield to as much as 40 percent by weight, Colosi said.

Proving that the algae can thrive with increased inputs of either carbon dioxide or untreated sewage solids will confirm its industrial ecology possibilities — to help with wastewater treatment, where dealing with solids is one of the most expensive challenges, or to reduce emissions of carbon dioxide, such as coal power-plant flue gas, which contains about 10 to 30 times as much carbon dioxide as normal air.

"The main principle of industrial ecology is to try and use our waste products to produce something of value," Colosi said.

Research partner Mark White, a professor at the McIntire School of Commerce, will help the team quantify the big-picture environmental and economic benefits of algae biofuel compared to soy-based biodiesel, under three different sets of assumptions.

White will examine the economic benefits of algae fuel if the nation instituted a carbon cap-and-trade system, which would increase the monetary value of algae's ability to dispose of carbon dioxide. He will also consider how algae fuel economics would be impacted if there were increased nitrogen regulations (since algae can also remove nitrogen from air or water), or if oil prices rise to a prohibitive level.

The third team member is Andres Clarens, a professor of civil and environmental engineering with expertise in separating the oil produced by the algae.

The team will experiment on a very small scale — a few liters of algae at a time. They will seek to optimize the oil output by using a pragmatic engineering approach, testing basic issues like whether it makes a difference to grind up the organic material before feeding it to the algae.

Wastewater solids and algae, either dead or alive, are on the menu. "We're looking at dumping the whole dinner on top of them and seeing what happens," Colosi said.

Some of these pragmatic issues may have been tackled already by the various private companies, including oil industry giants Chevron and Shell, which are already researching algae fuel, but a published scientific report on these fundamentals will be a major benefit to other researchers looking into algae biofuel.

Published evidence of improved algae oil output might spur significant follow-up efforts by public and private sectors, since the fundamentals of this technology are so appealing, Colosi said. Research successes would also open the door to larger grants from agencies like the U.S. Department of Energy, and could be immediately applicable to the handful of pilot-scale algae biofuel facilities recently funded by Shell and start-up firms

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Algae can be grown to produce Hydrogen
In 1939 Hans Gaffron, a University of Chicago research scientist, observed that the green algae he was studying, Chlamydomonas Reinhardtii, would occasionally switch from the production of oxygen to the production of Hydrogen. Gaffron was unable to discover why the algae would change to Hydrogen production and the answer would remain elusive for many years. In the late 1990s, University of California at Berkeley Professor Anastasios Melis discovered that if the algae culture medium is deprived of sulfur it will switch from the production of oxygen (normal photosynthesis), to the production of Hydrogen.
Further research revealed that the enzyme responsible for this reaction is Hydrogenase, but that the Hydrogenase lost this function in the presence of oxygen. Melis determined that depleting the amount of sulfur available to the algae interrupted its internal oxygen flow, allowing the Hydrogenase an environment in which it can react, causing the algae to produce Hydrogen. Chlamydomonas moeweesi is also a good strain for the production of Hydrogen.
When used in wastewater treatment facilities, algae reduces the need for increased amounts of toxic chemicals than are already used. Another use for Algae is to capture fertilizers in runoff from farms, and when subsequently harvested, the enriched algae itself can be used as fertilizer. Algae can be grown to produce biomass, which can be burned to produce heat and electricity.

Algae Bioreactors are also used at power plants to reduce carbon dioxide (CO2) emissions; the CO2 can be pumped into a pond, or storage tank, as a feedstock for the algae. Alternatively, the bioreactor can be installed directly on top of a smokestack, a technology pioneered by Massachusetts-based 'Green Fuel Technologies'.

Research on algae as a potential energy source began in the late 1970’s running for almost 20 years until the U.S. Energy Department cut funding in 1996. Even with the lower gasoline prices of the 1970’s, the Energy Department's National Renewable Energy Laboratory determined that algae would likely not be able to compete when it came to cost per gallon against fossil fuels.
In recent times, there has been resurgence into alternative fuel research due to rising crude oil prices, and the resulting impact on our environment due to fossil fuels. Biofuel made from algae oil has a long road ahead, not to mention competition from fuel made from corn and sugar cane. Biofuel research, bolstered by government mandates are expected to boost biofuel demand in coming years.
The European Union alternative fuel goal was set in 2003; Derive 5.75 percent of total transport fuel consumption from biofuel(s) by 2010 and up to 20 percent by 2020. The U.S. Renewable Fuel Standard Program requires that at least 7.5 billion gallons of renewable fuel be blended into vehicle fuel by 2012. Congress is also reported to be considering increasing the mandate to 35 billion gallons by 2017.

Algae Oil Biofuel

Designer Algae: the next Biofuel?

October, 2007
In 2006, the dusty town of Anthony Texas had little more going for it than being a New Mexico border town and an alfalfa field. This Dusty Texas Town recently became the home of a new and developing technology and oddly enough, it’s dependent on water. The old saying “Everything is bigger in Texas” doesn’t tell the whole story when it comes to the Vertigro alternative fuel laboratory being constructed there. The dry stretch of land in West Texas might seem like the last place to study anything that lives in water, but the effort is based on more than just a new idea.
The West Texas Town Hi-Tech lab is designed for an unusual yet potentially revolutionary purpose; to explore how algae can be used to reduce the world's dependence on fossil fuels. Alternative fuels are seen as having limited potential to curb oil consumption due to the reliance on oils from food crops like corn and soybeans, whose prices have been rising; the companies behind the algae plant are hoping to tilt the scales in their favor.


There are two companies behind the joint venture, El Paso's Valcent Products and the Canadian Alternative Energy firm, Global Green Solutions. The $3 Million dollar laboratory is hoping to further develop a system that to allow for low cost, mass production of algae in just about any location across the globe. Even though the process has yet to be tested on a wide scale, it could greatly accelerate the expansion of renewable fuels such as biodiesel and ethanol because the extracted algae oil can be usedto make fuel. Algae has definite potential but, other alternate biofuels have already hit the market and algae based fuel will need to be cost effective as well as environmentally friendly in order to compete
Currently, there are competing ideas about the best way to mass produce algae, as well as doubts about whether it can be produced at a lower cost than traditional oil. Once those questions have been answered, it still could take years to build the required infrastructure to produce and distribute algae oil on a meaningful scale.



Algae can be grown to produce Hydrogen
In 1939 Hans Gaffron, a University of Chicago research scientist, observed that the green algae he was studying, Chlamydomonas Reinhardtii, would occasionally switch from the production of oxygen to the production of Hydrogen. Gaffron was unable to discover why the algae would change to Hydrogen production and the answer would remain elusive for many years. In the late 1990s, University of California at Berkeley Professor Anastasios Melis discovered that if the algae culture medium is deprived of sulfur it will switch from the production of oxygen (normal photosynthesis), to the production of Hydrogen.
Further research revealed that the enzyme responsible for this reaction is Hydrogenase, but that the Hydrogenase lost this function in the presence of oxygen. Melis determined that depleting the amount of sulfur available to the algae interrupted its internal oxygen flow, allowing the Hydrogenase an environment in which it can react, causing the algae to produce Hydrogen. Chlamydomonas moeweesi is also a good strain for the production of Hydrogen.
When used in wastewater treatment facilities, algae reduces the need for increased amounts of toxic chemicals than are already used. Another use for Algae is to capture fertilizers in runoff from farms, and when subsequently harvested, the enriched algae itself can be used as fertilizer. Algae can be grown to produce biomass, which can be burned to produce heat and electricity.

Algae Bioreactors are also used at power plants to reduce carbon dioxide (CO2) emissions; the CO2 can be pumped into a pond, or storage tank, as a feedstock for the algae. Alternatively, the bioreactor can be installed directly on top of a smokestack, a technology pioneered by Massachusetts-based 'Green Fuel Technologies'.

Research on algae as a potential energy source began in the late 1970’s running for almost 20 years until the U.S. Energy Department cut funding in 1996. Even with the lower gasoline prices of the 1970’s, the Energy Department's National Renewable Energy Laboratory determined that algae would likely not be able to compete when it came to cost per gallon against fossil fuels.
In recent times, there has been resurgence into alternative fuel research due to rising crude oil prices, and the resulting impact on our environment due to fossil fuels. Biofuel made from algae oil has a long road ahead, not to mention competition from fuel made from corn and sugar cane. Biofuel research, bolstered by government mandates are expected to boost biofuel demand in coming years.
The European Union alternative fuel goal was set in 2003; Derive 5.75 percent of total transport fuel consumption from biofuel(s) by 2010 and up to 20 percent by 2020. The U.S. Renewable Fuel Standard Program requires that at least 7.5 billion gallons of renewable fuel be blended into vehicle fuel by 2012. Congress is also reported to be considering increasing the mandate to 35 billion gallons by 2017.

“Closed Loop” Algae Production


Vertigro, however, is about to begin building a pilot algae oil processing plant behind the Texas research lab, and company officials report discussions with biodiesel producers regarding licensing the "closed-loop" algae production system. While algae grows well in an "open pond", the Vertigro system uses a greenhouse filled with tall, clear plastic bags, suspended end to end in rows, to breed algae.
The bags have a constant supply of carbon dioxide, and are exposed to the sun thereby increasing the algae photosynthesis process. In this enhanced environment, the tiny green organisms can reproduce every 4 hours. An additional benefit of this process is that production is limited to selected strains which are energy rich. In the “Open Pond” method, these less prominent strains are typically crowded out by stronger strains which contain less oil according to Glen Kertz, CEO of Valcent, who developed the system.

Algae Production
The odds would seem to favor algae oil production. At 20,000 bags per square acre, algae yields around 100,000 gallons of algae oil per year. In contrast, one acre of soybeans only produces about 50 gallons of soybean oil a year, while one acre of corn yields about 29 gallons of oil per year. The largest benefit to date is that the Algae farms can be built virtually anywhere, a point hopefully demonstrated by locating a facility in West Texas.
Craig Harting, Global Green's chief operating officer stated that meeting U.S. gasoline and diesel demands with biofuels from seed crops would require all arable farmland in the nation to be planted many times over. With algae oil production, we can do it with less than 1 percent of that same area and it can be done anywhere.

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Algenol Biofuels, Sonora Fields $850M
Algenol has a licensing agreement with Sonora Fields (a wholly owned subsidiary of Mexican-owned BioFields) for a project in Mexico that will deliver a billion gallons of fuel a year.


Synthetic Genomics, ExxonMobil $600M+
ExxonMobil plans to invest more than $300 million in Synthetic Genomics as part of a larger $600 million collaborative R&D program for developing and commercializing transportation fuel from photosynthetic algae.



Sapphire Energy, venture capital $100M+
Sapphire has raised venture capital from high-profile investors including Bill Gates’ Cascade Investment, ARCH Venture Partners and Venrock to help it squeeze green crude from algae for high-octane fuels.


General Atomics, Department of Defense $20M-$43M
General Atomics began leading a team of university and industrial partners in a 36-month program starting in January 2009 to “examine all aspects” of the algae-to-jet-fuel production process under the Defense Adanced Research Projects Agency, or DARPA



SAIC, Department of Defense $15M
SAIC won a defense contract earlier this year to develop a $3-a-gallon algae-derived fuel for military jets. The funds come under a biofuels program in DARPA



Center for Advanced Biofuel Systems, Department of Energy $10M-$25M
The DOE will award $2 million to $5 million each year for five years to this St. Louis lab as part of the The Energy Frontier Research Center Awards program.



C2B2, Conoco Philips $5M
The Colorado Center for Biorefining and Biofuels (C2B2), part of the joint venture created by the University of Colorado at Boulder, Colorado State University, the Colorado School of Mines and NREL, won sponsorship from Conoco to develop transportation fuels from biomass, starting with algae.

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Will you be pumping up your car of the future with algae-bred fuel? Possibly, if ExxonMobil's latest venture is successful.

ExxonMobil and biotech firm Synthetic Genomics (SGI) announced on Tuesday a new alliance to produce alternative fuel made from photosynthetic algae. ExxonMobil expects to spend more than $600 million on the project--$300 million internally and another $300 million to SGI if key R&D milestones are met.

Under the partnership, SGI will research and develop systems to grow large amounts of algae and convert them into biofuels. ExxonMobil will provide engineering and scientific talent throughout different phases of the project, from increasing the level of algae production to manufacturing the final product.


(Credit: PetroAlgae)
"Meeting the world's growing energy demands will require a multitude of technologies and energy sources," said Emil Jacobs, vice president of research and development at ExxonMobil Research and Engineering Company. "We believe that biofuel produced by algae could be a meaningful part of the solution in the future if our efforts result in an economically viable, low net carbon emission transportation fuel."

In an economic climate that has made life tougher for alternative-energy companies, ExxonMobil is wading into biofuel waters that recently swallowed a once promising algae-minded start-up, GreenFuel Technologies, which said in May that it had run out of funds and would be shutting down. Still, other smaller companies such as PetroAlgae and Aurora Biofuels remain hopeful about commercial production of algae biofuel.

Algae is one of a number of potential alternative fuel sources, though many of the others, like ethanol, are derived from plants also used for food. Algae also can thrive in a variety of conditions.

Based in California, Synthetic Genomics is a privately held company that develops energy solutions based on genomics research.

SGI says it's spent several years working on a way to harvest the oil produced by photosynthetic algae. Past methods have proven costly and time consuming, but SGI says its process for collecting the oil has so far proven more efficient and cost-effective, though work remains to be done.

"The real challenge to creating a viable next generation biofuel is the ability to produce it in large volumes which will require significant advances in both science and engineering," J. Craig Venter, CEO of SGI, said in a statement. "The alliance between SGI and ExxonMobil will bring together the complementary capabilities and expertise of both companies to develop innovative solutions that could lead to the large scale production of biofuel from algae."

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LAKE MARY, Fla., July 16 /PRNewswire-FirstCall/ -- New Generation Biofuels Holdings, Inc. (Nasdaq: NGBF - News), a renewable fuels provider, today announced that it has signed a biofuel sales contract with Chaney Enterprises L.P. of Waldorf, Maryland.

This sales contract is the first in the concrete and aggregate market segment for New Generation Biofuels which will initially provide renewable biofuel to Chaney Enterprises in their Infern-O-Therm hot water boilers and will replace #2 fuel oil. In addition to the boilers the contract provides for additional scope to ultimately supply biofuel to Chaney Enterprises' large number of off-road vehicles.

"The renewable nature of NGBF biofuel allows us to reduce our carbon footprint in something as easy as switching our boiler fuel over from fossil fuels to NGBF biofuel," said Bill Childs, President and CEO of Chaney Enterprises L.P. "With the additional bonus of emission reductions in nitrogen oxide (NOX) and sulfur dioxide (SO2) it was an easy decision to make the switch."

"Chaney Enterprises has a reputation for being proactive and caring for the environment. We are delighted to be associated with Chaney and look forward to helping them reduce their carbon footprint and emissions," said Cary Claiborne, CEO of New Generation Biofuels.

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PARIS - Production of biodiesel in the European Union rose by more than 35 percent in 2008 and capacity will grow again this year although half the plants are idle due to poor demand, the EU producers group said on Wednesday.

The Brussels-based European Biodiesel Board (EBB) said the European production of biodiesel, by far the main biofuel made in the bloc, had reached 7.76 million tonnes last year putting the EU's global market share close to 65 percent.

However, the EBB qualified the 2008 rise as "moderate" compared to the jump of 65 percent in 2005 and 54 percent in 2006 but the rise was only at 17 percent in 2007.

"In line with the trend initiated in 2007, the year 2008 saw a relatively small increase in EU biodiesel production, and even a reduction in two major producing Member States, Germany and Austria," the EBB said in a statement.

For detailed statistics of biodiesel output per country and estimates for the 2009 capacity, please click on

"This situation has to be understood primarily against the background of unfair international trade competition which has severely affected the profitability of EU biodiesel producers since early 2007," it added.

The EU last week endorsed a proposal by the Commission, the 27-member bloc's executive arm, to extend for five years its anti-dumping tariffs against cheap U.S. biodiesel imports. The move was welcomed by the EBB, which had complained that EU producers were being hammered by U.S. subsidies.

"This decision will help re-establishing EU producer's legitimate right to operate in a level-playing field," it said.

HALF EU PLANTS IDLE

In addition to a fall in demand mainly linked to strong U.S. competition, EU producers have also suffered from slumping margins as the fall in crude oil prices over the past year was not compensated by a similar drop in vegetable oils prices.

Even if the EU will have total biodiesel production capacity of close to 21 million tonnes this year -- a rise of 31 percent on the year -- the EBB said 2008 and 2009 statistics showed that at least 50 percent of existing plants remain idle.

"Unfair international competition has been the main driver of this trend, while the political discussions in 2008 on adoption of the Renewable Energy Directive have added to market uncertainty," it said.

In an interview with Reuters late May, the EU's largest biodiesel maker, France's Diester Industrie, said it was pausing in its investments until it knew the details, expected next year, of the implementation of the EU's target of 10 percent renewable energies in transport by 2020.

The share that will be allocated to biofuels to reach this target is still unclear.

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Many prominent scientists and research departments of large major universities have been studying the energy benefits of algae for years. Dr. Paul Falkowski, one of many leading scientists at Rutgers University, has done research projects and studies on algae use as an alternative energy source. Dr. Falkowski, who is also the director of the Rutgers Energy Institute, is researching methods which would make producing biofuel from algae more effective and cost productive. Dr. Falkowski is doing research that includes schemes for the optimization of the oil extraction and the processing methods which turn the oil into biodiesel.

Dr. Mark Venable, the head of the Biology department at Appalachian State University in North Carolina, also has research into algae as a source of energy. Dr. Venable has a lab set up where he conducts experiments into lipids, or oils, including those found naturally in algae. The professor and his students are working on some interesting research projects, including ways to stimulate even higher amounts of oil production from these plants using low cost methods. Another area of research for this department is in studying the metabolic changes in algae responsible for oil production.

Biomass algae culture, called Algaculture, may very well be the best solution to meeting the energy needs of the future while addressing the carbon buildup and global warming at the same time. Algae bacteria are one of the best possible energy sources. Many strains of algae can contain significantly more than fifty percent oil, which can be used to make biodiesel. Algae offer many benefits that other renewable resources do not. Corn and soybeans are widely used in the production of biofuels, but this has many problems and is criticized by many third world countries, because these crops are food crops. Fertile land is needed for these crops, and fertile land is in short supply around the world.

Algae can be grown almost anywhere, even on sewage or salt water, and does not require fertile land or food crops. It is very efficient and can be made cost effective with little effort. Algae is very energy and oil dense, sequesters CO2 permanently while growing, only needs sunlight and water which is not suitable for drinking or farm use, only takes hours to reproduce, has a very high yield per acre used, does not require fertile land or food crops, and is very eco friendly because it is not toxic, does not contain sulfur, and is very biodegradable. This makes it the perfect solution for future energy that does not depend on other countries, fossil fuels, or pollute the earth and cause environmental harm.

As global warming speeds up, oil rich countries harbor terrorists, pollution reaches all time highs, and oil prices fluctuate widely, renewable energy sources are the answer. Algae bacteria are just one of the alternative energy sources being researched. Other methods are not as efficient or effective as algaculture though. Wind and solar energy are renewable, but these energy sources are unstable and are not continuous. This could lead to energy gaps, where more power is needed than what is available. Hurricane and ocean energy, such as wave and tidal energy, are other options but these are very hard to control and are not really good viable options. Algae as a energy source has none of these disadvantages. This method of creating biofuel is easily controlled, and is extremely stable. Algae can be grown almost anywhere, and processing requires less energy than the algae provides.

There are many university biology departments at schools around the world that are researching the benefits and possibilities of algaculture, and all of the research and scientific experiments have proven that algae may be the answer to the meeting the energy needs of tomorrow in a cost effective way that does not damage the environment or increase global warming. Algae can be a replacement for oil based fuels, one that is more effective and has no disadvantages. It is just a matter of time before this biofuel feedstock is commonly used and cultivated. Compared to other alternative renewable energy sources, algaculture is the only one that is controlled, stable, and has the ability to produce large amounts of biodiesel with no fertile land or good water use

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Glen Kertz, right, Chief Executive Officer of Valcent Products, Inc. and business partner Doug Frater, President and CEO of Global Green Solutions stand by their algae bioreactors. Glen Kertz thinks algae-filled plastic bags can be one solution to the world's thirst for fuel.

Kertz, a plant physiologist, developed a system using 10-foot-long water-filled plastic bags suspended in a greenhouse-like setting in the desert to grow algae, from which vegetable oil can be extracted to produce biodiesel.

"We expect to produce 100,000 gallons (of vegetable oil) per acre per year," which is a much higher yield than soybeans and other plants being used for biofuel, Kertz said Wednesday. He was showing off his patented Vertigro algae-growing system to news media, El Paso city officials and others at his company's 6.2-acre research facility in the Upper Valley.

"We think we can be cost-competitive with fossil fuels. That's our driving goal," he said.

Kertz, 54, is president and CEO of Valcent Products Inc., a publicly traded company, which he and investors formed about three years ago, and which now has most of its operations in the El Paso area.

It's developing the Vertigro system in a joint venture with Global Green Solutions, a 3-year-old publicly traded company with offices in Vancouver, British Columbia, the United States and Europe.

Kertz's algae-growing system "is so simple, it's ingenious," said Doug Frater, 55, president and CEO of Global Green, which has invested more than $3 million in the Vertigro test facility in Anthony, Texas, which includes a high-tech algae laboratory.

The companies are losing money as they develop the new technology. Valcent, which also is producing some consumer products, lost $10.9 million in its last fiscal year, according to its financial reports.

Global Green, which also has developed a system to turn biomass waste into steam and electricity, had a loss of $5.6 million in its last fiscal year, its financial reports show.

Kathyrn Dodson, director of the city Economic Development Department, who toured the Vertigro research facility Wednesday, said at least three other companies are working on biofuel projects in the El Paso area.

"It's so exciting that El Paso is a place where (companies are) experimenting with these technologies. It's an emerging industry cluster here, and we want to understand the market," Dodson said.

Mark Townsend Cox, CEO of the New Energy Fund, an $11 million New York-based fund which invests in companies developing renewable energy products, and Global Green consultant, said Global Green and Valcent appear to have one of the better algae-growing systems among 15 to 20 companies working on projects to use algae for biofuel production. Cox's fund also has stock in Global Green.

Kertz has figured out a solution to two problems with his closed-loop algae-growing system, Cox said: preventing water evaporation and stopping infiltration of foreign species of algae.

"They have a really smart design that I believe is scalable and (has) the ability to do it pretty rapidly," Cox said.

Michael Berry, a former college professor who publishes an e-mailed newsletter, Morning Notes, on "discovery opportunities" for investors, holds stock in Global Green and Valcent, and is a consultant for the companies. He said that he's been skeptical about the potential of algae as a biofuel source but that he's liked what he's seen at the Vertigro test site, which he's visited three times.

The problem with algae is that no one had "figured out how to do continuous harvesting. But I think these guys figured it out. If they have figured it out, it's going to be a big deal," said Berry, who is based in the New York area.

"I'm impressed and when they go to the pilot (project), it will be interesting to see if they deliver on what they say."

Construction on the pilot plant is expected to begin late this year on an acre at Valcent's research facility at 401Vinton Road in Anthony. It's expected to be producing vegetable oil from algae grown in 20,000 bioreactors, the big plastic bags, by the summer of next year, Global Green's Frater said.

The Vertigro system uses a canful of algae cells pumped into the plastic bags with water and carbon dioxide from the air and exposed to the sun. Algae can be harvested daily once the initial growing period of 25 to 30 days is completed, Kertz said. Valcent's algae lab determines exactly which algae meets its growing requirements.

Global Green and Valcent hope to be selling Vertigro systems by 2009 or 2010 to biofuel refineries in Europe, South Africa, and the United States, Frater said.

In July, the companies announced the forming of a joint venture with SGCEnergia, the biofuels division of the SGC Group in Portugal, to build a Vertigro pilot plant in Portugal. It also has a deal for a pilot project in South Africa with an undisclosed company, and is working a deal with a company in the United States, Frater said.

A Vertigro plant of the size needed to supply a large biofuel refinery would require about 200 to 300 acres and "probably cost about $800,000 per acre" to build and operate, Frater said. That means a full-scale plant would cost about $160 million to $240 million.

The Vertigro system is expected to be able to produce algae oil for about $1.70 a gallon versus about $2.63 a gallon for soybean oil, Frater said. Those numbers are without government subsidies or tax credits, he said.

Kertz said he's been developing his vertical growing system for 12 years. He did much of his development work at a lab he operated in Orange, Texas, where he lived until he moved to El Paso about three years ago.

He moved here because Valent Products began manufacturing one of its products in Juárez, and Kertz also saw that the El Paso climate was perfect for the Vertigro system, he said.

Valcent, which employs about 20 full-time employees and about 30 contracted employees at two El Paso offices, also produces the Novatique Skin Cleanser device through a contracted Juárez factory. It also is planning to sell a Tomorrow Garden indoor herb garden kit.

Vic Kolenc may be reached at vkolenc@elpasotimes.com; 546-6421

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The Holy Grail in the renewable energy sector has been to create a clean, green process which uses only light, water and air to create fuel. Valcent's VAT algae-to-biofuel technology (50% owned with equal partner Gobal Green Solutions Inc.) mass produces algae, vegetable oil which is suitable for refining into a cost-effective, non-polluting biodiesel. The algae derived fuel will be an energy efficient replacement for fossil fuels and can be used in any diesel powered vehicle or machinery. In addition, 90% by weight of the algae is captured carbon dioxide, which is "sequestered" by this process and so contributes significantly to the reduction of greenhouse gases. Valcent has commissioned the world's first commercial-scale bioreactor pilot project at its test facility in El Paso, Texas.

Current data projects high yields of algae biomass, which will be harvested and processed into algal oil for biofuel feedstock and ingredients in food, pharmaceutical, and health and beauty products at a significantly lower cost than comparable oil-producing crops such as palm and soyabean (soybean).

The VAT technology was developed by Valcent in recognition and response to a huge unsatisfied demand for vegetable oil feedstock by Biodiesel refiners and marketers. Biodiesel, in 2000, was the only alternative fuel in the United States to have successfully completed the Environmental Protection Agency required Tier I and Tier II health effects testing under the Clean Air Act. These tests conclusively demonstrated Biodiesel's significant reduction of virtually all regulated emissions. A U.S. Department of Energy study has shown that the production and use of Biodiesel, compared to petroleum diesel, resulted in a 78.5% reduction in carbon dioxide emissions.

Algae, like all plants, require carbon dioxide, water with nutrients and sunlight for growth. The VAT bioreactor technology is ideal for location adjacent to heavy producers of carbon dioxide such as coal fired power plants, refineries or manufacturing facilities, as the absorption of CO2 by the algae significantly reduces greenhouse gases. These reductions represent value in the form of Certified Emission Reduction credits, so-called carbon credits, in jurisdictions that are signatories to the Kyoto Protocol. Although the carbon credit market is still small, it is growing fast, valued in 2005 at $6.6 Billion in the European Union and projected to increase to $77 Billion if the United States accepts a similar national cap-and-trade program.

Valcent's VAT bioreactor system can be deployed on non-arable land, requires very little water due to its closed circuit process, does not incur significant labor costs and does not employ fossil fuel burning equipment, unlike traditional food/biofuel crops, like soy and palm oil. They require large agricultural acreage, huge volumes of water and chemicals, and traditional farm equipment and labor. They are also much less productive than the HDVB process: soybean, palm oil and conventional pond-grown algae typically yield 48 gallons, 635 gallons and 10,000 gallons per acre per year respectively.

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An Arizona energy company is betting big on algae. PetroSun Biofuels has opened a commercial algae-to-biofuels farm on the Texas Gulf Coast near scenic Harlington Harlingen Texas. The farm is a 1,100 acre network of saltwater ponds, 20 acres of which will be dedicated to researching and developing an environmental jet fuel.


PetroSun’s gameplan is to extract algal oil on-site at the farms and transport it to company bideisel refineries via barge, rail or truck. The company plans to open more farms in Alabama, Arizona, Louisiana, Mexico, Brazil, and Australia in 2008.

Of all the options for future jet biofuel production, algae is considered one of the most viable. It yields 30 times more energy per acre than its closest competitor, and requires neither fresh water, arable land used for cultivation, or consumable food, giving it an advantage over ethanol. PetroSun asserts that an area the size of Maryland could produce enough algae biofuel to satisfy the entire fuel requirements of the United States.

Perhaps seeing the writing on the wall, the once skeptical Boeing is now said to be working with alternative fuel developers from around the world to accelerate alternatives to jet fuel, which at $110 a barrel is threatening to sink the major airlines. Continental has said that it will conduct a biofuel test flight next year, the first US airline to do so. Earlier this year, Virgin Atlantic flew a 747 partially powered by coconut and babassu oil. In addition to its commercial applications, PetroSun says, somewhat cryptically, that it is also working with a "government laboratory" to co-develop an algae-based fuel for military use.

Gordon LeBlanc, Jr., the CEO of PetroSun, is quoted as saying that the company’s success is a combination of a superior technological approach, sheer luck, and a "redneck can-do attitude