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Efforts bloom to prove up algae oil Sapphire Energy announces its Green Crude Farm is now operational in New Mexico; ExxonMobil, Navy and others show interest in algae By Wesley Loy For Petroleum News
It’s not a new idea, but it’s getting renewed attention — making oil from algae.
The latest indication comes from a San Diego-based company called Sapphire Energy Inc., which on Aug. 27 announced the first phase of its Green Crude Farm is now operational. The company calls it “the world’s first commercial demonstration algae-to-energy facility.”
The project involves growing algae in ponds in the desert scrub of southern New Mexico. Sapphire said the first seeding of ponds with algae took place in March, and the company harvested its first crop in June.
Once completed, the Green Crude Farm will consist of 300 acres of algae cultivation ponds and processing facilities, and by the end of 2014 will produce about 100 barrels of crude oil per day, Sapphire said.
“Sapphire Energy is on target to make algae-based Green Crude a viable alternative fuel solution capable of significantly reducing the nation’s need for foreign crude oil, which will serve as the blueprint for scalable algae biofuel facilities globally,” the company said.
Exxon’s algal alliance Lipids, or oils, can be extracted from certain algal strains.
The potential for large-scale algae oil production is attracting attention not only from companies such as Sapphire, but from conventional oil giants such as ExxonMobil, Chevron and BP.
And the federal government and military are showing big interest, too.
In 2009, ExxonMobil announced an alliance with Synthetic Genomics Inc., of La Jolla, Calif., to research and develop biofuels from photosynthetic algae — fuels compatible with today’s gasoline and diesel.
ExxonMobil said at the time it believed biofuel produced by algae “could be a meaningful part” of meeting world energy demand. The company said it could spend more than $600 million on the Synthetic Genomics alliance.
“After considerable study, we have determined that the potential advantages and benefits of biofuel from algae could be significant,” an ExxonMobil research executive said. “Among other advantages, readily available sunlight and carbon dioxide used to grow the photosynthetic algae could provide greenhouse gas mitigation benefits. Growing algae does not rely on fresh water and arable land otherwise used for food production. And lastly, algae have the potential to produce large volumes of oils that can be processed in existing refineries to manufacture fuels that are compatible with existing transportation technology and infrastructure.”
On May 24, Synthetic Genomics announced it had purchased an 81-acre pond site in the Southern California desert “for scale up and testing of newly identified and engineered algal strains.” A desert environment of little rainfall and plentiful sunshine is optimal for such a site, the company said.
Biofuel for warships The U.S. Department of Energy’s National Renewable Energy Laboratory has a number of projects to determine the feasibility of using algae as a cost-effective feedstock for fuel production.
NREL and Chevron are collaborating to develop techniques to improve the production of liquid transportation fuels from microalgae — microscopic algae. And NREL is working with the U.S. Air Force on basic research to “answer fundamental algal biology questions regarding oil production that could lead to the development of cost-effective, algal-based jet fuel.”
From 1978 to 1996, DOE funded NREL’s study of microalgae under the Aquatic Species Program. Then the price of oil bottomed out at roughly $20 a barrel. The estimated cost of algae oil at the time was about $80 a barrel, and DOE stopped funding the Aquatic Species Program.
The Energy Independence and Security Act of 2007, setting goals for U.S. production of renewable fuels, helped revive interest in algae.
The U.S. Navy is showing strong interest in biofuels as a way to reduce reliance on foreign oil. It recently put a Pacific fleet through maneuvers using diesel from algae and chicken fat, an Aug. 27 article in The New York Times said.
“It works in the engines that we have, it works in the aircraft that we have, it works in the ships that we have,” Navy Secretary Ray Mabus was quoted as saying. “It is seamless.”
While the Navy has taken some political flak for buying expensive biofuels costing about $27 a gallon, supporters say large and stable military contracts could be important for reducing biofuel costs through economies of scale, the Times article said.
Sapphire’s government backing Sapphire Energy said its Green Crude Farm, also known as an Integrated Algal Bio-Refinery, was funded with both private and public funds.
These include Sapphire’s private investment of $85 million, backed by a U.S. Department of Agriculture loan guarantee, and a $50 million DOE grant.
Sapphire said its cultivation area has some of the largest algae ponds ever built. The farm features equipment to process the algae and recycle water for the site.
The company took in its first crop in June and has since harvested 21 million gallons of algae biomass totaling 81 tons, Sapphire said in its Aug. 27 press release.
The farm is preparing to shift operations to a winter variety of algae, the company said.
“Bringing our Green Crude Farm online is not only an important accomplishment for Sapphire Energy, but a critical step toward a viable alternative energy future,” said Cynthia “CJ” Warner, Sapphire’s chief executive. “What was once a concept is now becoming a reality and model for growing algae to make a renewable crude oil for energy.”
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