Pond Scum!!

My company is not affiliated with the guy in this article, but we're considering it, if we can get past the fact that he looks like a shyster.

"Second-generation" biofuels (biofuels not utilizing foodstocks) could be a large part of the answer to our energy needs. It's going to be tough to get past the farm lobby, which has a lot invested in ethanol from "first-generation" foodstocks, but it's something we're going to have to do.

Going green
Algae viewed seen promising input for alternative fuels
By BRETT CLANTON

Barry Cohen, director of the National Algae Association, says it’s time to get moving on turning algae into fuel. “My mantra is: What are we waiting for?”  He is taking the concept of going green to a whole new level.

As director of the National Algae Association, he is a leading advocate of curbing U.S. dependence on oil by harnessing the power of tiny, green waterborne plants known to most as pond scum.

Though it may sound far-fetched, the idea has gained momentum in recent years.

After decades of research, algae now is viewed as one of the most promising inputs for alternative fuels like biodiesel, as well as a potential way to capture carbon emissions from polluting factories.

“No one has really looked at algae as a business opportunity until recently,” said Cohen, who runs the association from a home office in The Woodlands.

Now, he finds that his group’s quarterly conferences include not just researchers and what he calls “algaepreneurs” but representatives from oil companies, airlines, the U.S. military and investment firms. The group’s next meeting will take place April 30-May 1 in Houston.

But the recession and low oil prices could be a setback to companies hoping to get into the algae business in coming years. Production costs also remain high, analysts said.

Yet Cohen argues that the case for investing in algae remains solid, given the inevitability that crude oil costs will rise again, the need for the U.S. to wean itself from foreign oil and the Obama administration’s desire to create new “green” jobs.
“My mantra is: What are we waiting for?” Cohen said.

Research on algae as a possible energy source is not new. The U.S. government studied it for nearly 20 years beginning in the late 1970s before cutting funding for the program.

But there has been renewed interest in recent years as oil prices climbed, algae production technology improved and concern widened about the sustainability of producing biofuels from corn, soybean and other food crops.

Indeed, proponents believe oil extracted from algae may be the ideal feedstock for many alternative fuels. Unlike crops that are seasonally harvested and require large swaths of arable land to grow, algae can double their numbers in a single day and prosper in a variety of climates.

Algae yield projections are estimated to range from 2,000-5,000 gallons per acre versus 61 gallons per acre for soybeans, the leading feedstock for biodiesel in the U.S. today, according to the National Biodiesel Board.

Because it feeds on carbon dioxide, algae also could help clear the air of polluting emissions. That’s why some have proposed building algae factories next to coal-fired power plants and other industrial polluters.

Production still costly

“We have land being thrown at us, not for sale, not for lease, but for free,” Cohen said. “Land is a non-issue for this industry.”

Currently, however, algae oil production costs $20 a gallon, more than double the cost of other leading biofuel crops, said Divya Reddy, an energy analyst for the Eurasia Group in Washington. That’s why she estimates it could be up to 10 years before algae-based fuels are widely available.

Cohen, who also runs Biofuel Capital Partners, a biofuel financier, disagrees. He said he is already receiving business plans suggesting production costs as low as $1.50 a gallon.

In 2007, Chevron Corp. formed an alliance to explore algae fuels with the National Renewable Energy Laboratory, part of the U.S. Department of Energy.

Sapphire Energy, a San Diego-based firm backed partly by Microsoft founder Bill Gates, and others are also moving forward with algae-based fuel projects that could lower costs.

Taking flight

In January, Houston-based Continental Airlines became the first air carrier to fly a U.S. commercial jet on a mix of conventional jet fuel and biofuels, some of which were derived from algae. Similar test flights have taken place in other countries.
In the U.S., there are some 20 small algae producers, and the number is growing, Cohen said.

Russell Industries, a Nevada holding company run from Houston, may join the group soon. This year, the firm plans to open an algae plant at a still-undecided Houston location, CEO Rick Berman said.

It will produce algae oil to be sold to biodiesel refineries and also market its biomass waste to cosmetic, pharmaceutical and bioplastics industries, he said.

Berman likes the idea of having the first such facility in Houston, but is also confident it will make money. “We’re not doing this because we have nothing better to do,” he said.

The original story is here.