PetroAlgae signs deal with Indian Oil

by Candace Lombardi

PetroAlgae has signed a memorandum of understanding to license its proprietary technology for producing and harvesting algae for fuel to Indian Oil, the company announced this week.

The Melbourne, Fla.-based company has developed bioreactors and harvesting methods for converting algae grown in open-pond freshwater farms into biodiesel.

The first phase of its partnership with Indian Oil will involve building a test facility to see whether PetroAlgae’s production method is scalable. Once that has proven to be successful, Indian Oil plans to build a commercial production facility that could produce 200,000 tpa (tonnes per annum) of biodiesel. That facility would also produce a protein byproduct from the process that could be sold for use in making animal feedstock.

The Indian Oil-PetroAlgae deal lends further support to the notion that India’s ambition is to rival Brazil as the world’s largest exporter of biofuel in the coming years. Global biofuel use is expected to double by 2015, according to a recent report by Hart Energy Consulting, and many Big Oil players have been focusing efforts on getting a footing in that arena.

Until recently, most of the Big Oil interest in algae biofuel has been in the form of investments thrown at pilot projects, start-up companies, and research institutions. But the past few months have seen prominent partnerships with more clearly laid-out commercial ambitions.

In July it was announced that Exxon Mobil is investing over $600 million to produce biofuel made from photosynthetic algae in conjunction with the Calif.-based biotech firm Synthetic Genomics (SGI). Martek Bioscience, which initially was selling its fermented algae as a baby food additive, announced in August that it had signed a deal with BP on microbial biodiesel production from algae fermentation.

While algae start-ups seem to have weathered the economic investment drought, as PetroAlgae’s own board head John Scott predicted in May, it remains to be seen which method for growing algae will win out.

There is an ongoing debate over whether it’s more cost-effective to grow algae by fermentation or photosynthesis. The PetroAlgae deal with Indian Oil puts another mark in the photosynthesis column.

Biofuels FAQ’s by Sean O’Hanlon

We are working hard to bring renewable fuels to everyone through collaboration and technological innovation. World wide growth in demand for petroleum has outpaced the supply. The economic, environmental, and security implications of our consumption are mounting, threatening every aspect of life in America and around the world. We believe there is a better way - Biofuels.
With a growing and rapidly industrializing world economy, conservation will not be enough. We need new sources of fuels which are both renewable and better for the environment.

Despite the threats imposed on our country by ever increasing oil imports, higher prices and environmental concerns, biofuels continue to be the subject of false assumptions and unfounded concerns based on incomplete and inaccurate opinions. As a result, there is great demand for thorough and accurate information about biofuels from government, private enterprise, the media and most importantly consumers. ABC is actively working to correct the myths and distortions surrounding the development of biofuels by producing publications and other educational information. To request more information on any of the points listed below, or if you have an idea for a new publication, please contact us at the American Biofuels Council.

There have been serious questions raised about the impacts of biofuels. These questions are perfectly reasonable and therefore should be addressed in a responsible and thoughtful manner by making direct comparisons to the petroleum they are meant to replace.

Myth: We are causing starvation by using food based crops to produce biofuels.

Fact: The price of food is increasingly tied to the cost of oil; not biofuels. The rising price of commodities, ranging from oil and steel to corn and wheat, are in many ways a reflection of the growth in the global economy.

The rise of China, India, and Latin America means they are now taking a greater bite of the world’s soybean and grain exports. As the standard of living rises in these regions, more people can afford to purchase meat. That means increased amounts of grains are needed to feed chickens, hogs, cattle and other livestock.

Myth: Producing biofuels will cause there to be a lack of clean drinking water for people.

Fact: Grey water (reclaimed from waste water treatment plants) can and should be used to irrigate crops grown for biofuels and algae.

Did you know?…

The DoE estimates that if biofuels from algae replaced all the petroleum fuel consumed in the United States, it would require only 15,000 square miles, which is a few thousand square miles larger than the state of Maryland.

This is less than 1/7th the area of corn crops planted in the United States in 2000.

Myth: It takes more energy to produce biofuels than they provide.

Fact: Biodiesel has a positive energy balance of 3.5 to 1; (and that’s just from soybeans) while ethanol from sugarcane has a positive energy balance of 8 to 1. (That’s an 800% return on investment!)

Did you know?…

There are numerous crops grown in the US that can be used for ethanol production with higher yields from lower inputs than corn. (Algae, Sweet Sorghum, Sugar Beets, Sugar Cane)

Myth: Biofuels are worse for the environment than petroleum.

Fact: Ethanol from sugarcane reduces harmful GHG emissions by 80% and using biodiesel in school buses reduces harmful emissions by as much as 76%.

Did you know?…

The American Lung Association of Metropolitan Chicago credits ethanol-enriched fuel with the 25% reduction of smog-forming emissions in Chicago since 1990.

According to Argonne National Laboratory, blending 15% ethanol with regular diesel fuel (ULSD), Particulate Matter emissions are reduced by up to 75% and NOx (Nitrous Oxide) emissions by up to 84%. (This does not include the benefits of blending biodiesel.)

Myth: Biofuels will never be economically competitive with petroleum without government subsidies.

Fact: First generation Ethanol from sugarcane is already competitive with oil at $45/bbl.

Did you know?…

Brazil ended all subsidies on ethanol in 2006.

Brazil had 30 years to develop their ethanol industry. We can do the same thing in much less time.

Myth: We can “Drill here, drill now, and pay less.”

Fact: We have hit peak oil. ($145/bbl proves it.)

Did you know?…

There is a 5 year back order on oil exploration rigs and equipment.

What little oil there is left to find is further offshore, in deeper water, and even deeper under the ground. That oil is not “light sweet crude” either. (That means it is dirtier and more expensive to refine.)

Two out of three of our major petroleum suppliers in this hemisphere are running out of oil. (Mexico and Venezuela) Before the end of the next decade, Mexico will no longer be exporting oil and will have to start importing it to meet their growing demand.

You can learn more by reading our Biofuels News.  Still have questions?      Please contact us at info@americanbiofuelscouncil.com anytime! We look forward to hearing from you.

First bio fueled flying car

Presenting the world’s first bio fueled flying car; a machine that can drive like a car and fly like an aeroplane; capable of beating congestion for the commuter or providing a low cost and practical method of reaching remote regions. On 14th January 2009 the team will embark on an incredible maiden voyage from London to Tombouctou, across the Sahara desert.

Read more

Offshore Oil Drilling Discussed in New Jersey by Secretary Salazar

Interior Secretary Ken Salazar participated in an an open forum to discuss the energy future of the region as the executive order banning drilling on the outer continental shelf has been lifted. While windmills off the Eastern seaboard could eventually generate enough electricity to replace nearly all the coal-fired power plants in the country, there are other industries, such as trucking, that they would have no beneficial impact on. Currently, the oil industry is also the largest investor in alternative energy research and development at roughly 56%.

While opponents argue that one accidental spill could destroy marine life and tourism, proponents cite statistics on the advanced new technologies which kept the waters spill-free from the drilling rigs even during the harshest circumstances such as Hurricane Katrina. NJ.com

It’s all about the economy… what if?

As each day passes and we continue to be bombared by the harsh economic reality the entire world is facing today, I cannot help but consider the many environmental “what if’s” that relate to the economy. These are things that not only could have helped prevent us from getting here in the first place, but can also keep us from repeating the same mistakes in the future.

What if #1: Independent and alternative energies: Remember in the 70’s when everyone was buzzing about the need to reduce our dependence on petrolium because of the oil crisis? What if we had not forgotten about the urgency as soon as the crisis ended? Well - sure, we still would probably be using petrolium for some or maybe many things, but not as much. And we would likely be nearly entirely energy independent which means that our economy could be stronger as we would not suffer the consequences of high gas prices such as what happened last summer. Lesson learned -We cannot afford to forget again. Let’s keep the pressure on decision-makers even after the economy gets stronger so that thirty years from now, our children will not have to face the same crisis again.

What if #2: Coming on the next blog post - stay tuned!

In the meantime - please send me your “What if”. I am looking forward hearing to your thoughts.

Governor Crist gives the green light for cellulosic ethanol plant

Charlie Crist has approved a proposed plan for commercial scale cellulosic ethanol production to be run by Coskata on US Sugar land originally intended for sale to the State of Florida.

The 100 Mgy cellulosic plant will utilize sugarcane waste and other agricultural residue from US Sugar and other AG producers in the area surrounding Clewiston. The project is expected to cost $400 million and would be the first commercial scale cellulosic ethanol plant.