Private sector investments, regulatory support and
strategic partnerships are driving commercial production of biofuels derived
from algae.
That activity will fuel compound annual growth of 43% for algae
biofuels technologies, driving the market to $1.6 billion by 2015, according to new SBI Energy
research.
"Strategic partnerships from ExxonMobil, Chevron,
BP, Dow Chemical, Desmet Ballestra and many others will drive the investment
needed to successfully commercialize algae biofuels," says Shelley Carr,
publisher of SBI. "Private investment and venture capital will also
provide funding through 2015."
The high yield per acre (up to 5,000 gallons of renewable
oil per year on a single acre) and minimal environmental impact of algae
biofuels make them one of the most viable and attractive biofuels. Government
grants have been a major source of funding in the past. For example, in 2009, the sector
received more than $100 million in funding from the U.S. Department of Energy.
But the landscape began shifting amid the weak economy
and federal budget cuts, with the private sector picking up some of the slack.
One example is the joint venture announced in April
between Solazyme Inc. (NASDAQ: SZYM) and global agribusiness Bunge (NYSE:BG) to
build and operate a commercial-scale oils production plant in Brazil. In 2011, San
Francisco-based Solazyme was the first algae biofuels company to make its IPO.
The US Renewable Fuel Standard (RFS2) requires the
production of 21 billion gallons of renewable fuel annually by 2022; originally
focused on ethanol, the standard was updated last year to cover all advanced
biofuels, including cellulosic, algae, and other technologies.
The US military has been one of the biggest proponents of biofuels, citing the need to improve domestic production and improve the defense agency’s energy "security."
But Congressional Republicans have squawked over high prices.
For the Rim of the Pacific exercise in July, the Navy used a mix of 50-50 biofuels to gasoline to power five warships, helicopters and aircraft. It spent $12 million on 450,000 gallons of biofuels, which, after being mixed with petroleum, cost about $15 a gallon.
The Department of Defense is committed to sourcing 25% of
its energy from renewables by 2025: the Air Force plans to use biofuels for 50%
of domestic aviation by 2016; and the Navy will reduce fuel consumption on
ships 15% by 2020, while reducing dependence on fossil fuels 50% over the next
decade.
As of 2011, 11.3% of DOD’s energy comes from renewables,
saving US taxpayers billions of dollars, the agency says.
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Ideas for how to better inform your readers with facts missing from this story.
How are Shell’s JVs with Choren and Cellana going? With touted yields of 5,000 gal/acre, how much algae fuel has been produced in the US so far? What companies have sold fuel made from algae photosynthesis so far? Is Solazyme the example to follow? How is Solazyme making fuel from algae that are fed sugar not a direct competition with food? What is the lowest per gallon price of Solazyme algae fuel (hint: it’s much higher than the $26.75/gal for the recent Navy purchase that was mostly Tyson chicken fat.) Don’t you think these would make the article more interesting . . . and balanced?
balanced? um, take it to faux news dude. second, this is clearly a bulletin from SBI Energy in an attempt to sell or market their research reports. a 6th grader reading this would understand that. sheesh.
Cliff, this isn’t meant to be a feature story that covers the landscape on algae fuels, it’s about the fact that the market is growing rapidly. We’ve written dozens of stories on various aspects of this promising techology, just use our search engine to find them, in addition to those linked in this article.
I know a company that can grow more algae per acre than anyone by more than 5 times and without sugar, or any food stock in the process, also the company is carbon negative, and makes it’s own energy source to operate plant.