Aurora Biofuels said that it has succeeded in optimizing its base algae strains to more than double CO2 consumption and fuel production. The company has proven these results in an outdoor open system over the last several months.

Using tools developed in the fields of molecular biology and biochemistry, Aurora Biofuels scientists have developed a proprietary process which allows for the selection and breeding of non-transgenic algae. Using these techniques, the company has optimized its base algae strains with an increased ability to process sunlight and carbon dioxide into algal oil.

As a result, these algae strains can produce more than twice the amount of oil. Optimized algae have been producing oil in Aurora Biofuels’ outdoor pilot ponds for several months, providing evidence that these strains will remain robust at the industrial scale and remove more carbon emissions than previously thought possible, the company said.

“This is a major breakthrough showing that one can take algae with improved productivity from the research lab to the field. What Aurora scientists have achieved is an impressive milestone on the path to large-scale commercial algae production,” said Kris Niyogi, a member of the company’s scientific advisory board and professor of algal biology at the University of California, Berkeley.

Reprinted with permission from Renewable Energy World

Putting the words "pond scum" and "lawyer" in the same sentence is no longer a slight; at least not if you're in the energy biz.

Attorney Todd Taylor has become expert in helping algae energy and other renewable energy startups to navigate the murky waters of becoming viable entities. Taylor, who has the unique title of "lead biomass shareholder in Fredrikson & Byron’s Renewable Energy Group" in Minneapolis, has been active in the biofuel industry for more than a decade.

Taylor says his firm takes a "venture capital-like approach" to finding energy startups as potential clients. Fredrikson & Byron identifies promising young companies in renewable energy including wind and solar and advises them on negotiating contracts, obtaining financing, and finding industry partnerships.

By helping young companies -- often run by scientists with little business experience -- to become commercial successes, Taylor creates a stable of clients who'll keep coming back as they grow stronger. He counsels clients on how to find and secure financing, providing advice on questions such as "What should the terms be of $20 million investment?"

His long time in the industry and connections help Taylor to compare companies to existing technologies to determine if companies with good ideas can be commercially viable.

Taylor, who has no interest in being inside the courtroom, says he spends one-third of his day on business development for his firm and his clients. "I'm not a litigator. I'm a business attorney." One of the value-added services he provides is to connect startups with VCs and established industry players that are also Fredrikson & Byron clients.

Despite representing many of the Midwest's plethora of corn ethanol companies in the past and present, Taylor says he's "not naive about its drawbacks." He is currently working with lobbyists and the Algal Biomass Organization so that algae energy can have a fair shake in the marketplace.

"If you look at the (federal) renewable fuel standard, there is not fuel feedstock parity," Taylor says, pointing out that biofuel from algae doesn't receive the same treatment as more mature (and politically connected) industries

Taylor's mission also includes a strong component of education. To wit, he is chairing an all day seminar on August 18 on algae energy, entitled the "Fredrikson & Byron Midwest Algae Commercialization Conference."

As industries get increasingly specialized, the lawyers who represent them become equally as expert in their intricacies. Asking questions about other industry clients is wise, because as Taylor says, "You don't want to have a law firm that doesn't know your space."

John Gartner is Editor in Chief of Matter Network and an Industry Analyst for Pike Research

Nearly $800M from the American Recovery and Reinvestment Act is being provided to hasten biofuel development through research and commercialization incentives through the U.S. Department of Energy Biomass Program. New and old biorefineries as well as key research towards ethanol and other advanced biofuels will receive much-called for assistance to urge onwards new energy sources, like biofuel from algae.

The majority of the funding ($480 million) will be going to integrated biorefinery projects at pilot and demonstration stages and the DOE anticipates making 10 to 20 awards of either $25 or $50M (depending on scale). The ARRA package will assist ethanol and advanced biofuel companies, an industry that has suffered from the economic downturn. For commercial-scale biorefinery projects, $176.5 million will be provided to two or more previous companies that previously received DOE funding.

Last year, three small-scale biorefineries were recognized in Maine, Tenessee and Kentucky, and one of the projects was supported by a grant of up to $30 million towards a cellulosic ethanol plant in Kentucky, by EcoFin (a subsidiar of Alltech) which, in addition to using switchgrass and corn cobs, will also be rely on algae for biodiesel production.

As of March 2009, DOE funded projects numbered six commercial opportunities, with two halted in 2008 due to the economic downturn, and ten demonstration projects, only four of which are currently in development. Some of the companies the DOE funded in 2008 who are currently developing ethanol and other biofuels include Pacific Ethanol, NewPage, Flambeau River Biofuel and Mascoma. In 2007, South Dakota-based Broin-POET, the nation’s largest ethanol maker, began work with the DOE to create a commercial cellulosic ethanol biorefinery.

The program dedicates $130 million to research, $20 million of which is going directly towards ethanol research on high octane E85 fuel, potential impacts of higher ethanol blends and upgrading distribution. The Biomass Program will also be funding research towards sustainability research, compatible biofuels and, specifically, algal biofuels.

Algal biofuel is growing as an industry—the green dream of transforming excess CO2 into energy seems well within grasp, with numerous companies who have successfully transformed it into biodiesel and ethanol. Algae could even serve as an answer to coal emissions, as an algae production facility could potentially absorb emissions from a nearby coal-fired power plant.

Last year, the first commercial algae-to-biofuels facility was brought online by PetroSun and algal biofuel that has continued to grow in popularity. Montana and Utah State Universities are continuing a three-year study on algae-to-biodiesel production and are focusing on identifying algae oil that is 30-50% oil by weight, and Inventure Chemical is working on an algae-to-jet fuel product and has created algae-based fuel in small tests.

In Redmond, Washington a new strategy has been developed by Bionvitas, which uses Light Immersion Technology to grow algae in a much denser fashion. Typically, algae eventually grows dense enough so that sunlight is blocked by sheer surface density—Bionavitas has conquered this by inserting acrylic rods that reflect light to underwater areas up to a meter.

A company researching alternative and renewable energy technologies, Diversified Energy Corporation, is working on a conversion process that will convert renewable oil to fuels that are identical to petroleum. Diversified Energy is also working on a scalable biomass cultivation system using algae. Sapphire Energy, which captured more than half of VC investments in 2008 towards microalgae-biofuel development, promise to deliver one billion gallons of algal biofuel a year by 2025. Sapphire has also had a successful test with Continental Airlines with a half bio-fuel and half-jet fuel blend.

North of Sapphire in San Francisco is Solazyme , a company working to create more efficient algae that will result in improved biofuel yields and who has partnered with Chevron. Successful for already two years at fermenting algae through a process in the dark using sugars as a feedstock in their facilities, Solazyme’s work produces B100 Soladiesel that has lower lifecycle greenhouse gas emissions than soy biodiesel, according to Lifecycle Associates.

"Algae are amazing. The molecules they make naturally would blow your mind. They make long chain hydrocarbons naturally—we’re taking that capability and enhancing that,” said Jonathan Wolfson, CEO of Solazyme.

Algae are a non-food supply that require mostly water and sunlight, can be grown in a multitude of locations, and could become a critical feedstock for replacing fossil fuels. Feedstocks like vegetable oil or animal fat are constrained, ultimately, by overhead costs and availability, but when supplemented with alternatives (like algae) the U.S. can begin to reduce its fossil fuel dependency.

The clean technology industry experienced a big drop off in the last quarter of the 2008, falling 38 percent from the prior quarter as investors were leery of the economic slowdown.

However, the year overall saw another record-breaking investment in clean tech of $8.4 billion.

There is a growing issue -- or more precisely an issue of non-growth -- for clean technology companies. There is an urgent need for capital to help companies pass through the “Valley of Death,” the current gap in the market created by reluctant investors. This slowdown is not expected to change until more capital is made available. With new sources of non-traditional funding, such as the government’s stimulus package, clean tech is expected to be bolstered against this valley, and the report takes a positive stance, as well as encouraging investment at a stage which Cleantech Group refers to as bargain-hunting.

The report says utility companies are also part of these new sources of funding, as now clean tech assets have been recognized for their impressive return on investment and the increasing availability of tax credits.

The Electric Power Research Institute initiative (EPRI) is a strong example of utilities playing remarkably key roles in the evolution of clean technology. The goal of one initiative is to test the addition of solar thermal collectors to fossil fuel powered plants in an effort to reduce the amount of fuel required at these locations.

Participating plants, operated by well-known coal-based utilities that are not renowned for their focus on alternative energies, are being driven by efforts to battle rising per kilowatt-hour variable costs to achieve greater efficiency and reliability, among other gains.

The leading company in solar Nanosolar is focusing efforts on commercializing production of CIGS (copper indium gallium diselinide) thin-film solar cells, which is expected to cut production costs. This new method is receiving support, as venture investors shifted their focus significantly from traditional c-Si PV technologies to thin-film PV, which is quickly becoming a dominant investment theme.

Wind power saw a rise in investment from 2007 to $502 million, but still remained lower than 2006’s record results. While the market for wind power has been “historically lumpy” (per the report), if investments in wind technologies are separated from wind farms, the growth experienced by wind technologies is impressive, and up 124% this year. 2008 saw a change in wind power, as entrepreneurs approached smaller size turbine markets not already dominated by large manufacturers.

The group encourages a shift from solar, the leading clean tech investment area (40 percent), to the less popular but growing efficiency sectors, such as smart grid or green buildings, which together only comprise 8 percent of investments. Efficiency is a market that is not only receiving additional government attention, but also has opportunities that are primarily (70 percent) in the developing world.

Venture investment in green building has continued to rise steadily since 2004, and reached $364 million in 2008. One green building company highlighted by the report is Aspen Aerogels, which produces aerogel insulation which is superior to traditional insulation. Another company that received mention was ICE Energy, a company pioneering an energy system that will store energy in the form of ice, while energy costs are low at night, and then use that ice to power central cooling/air conditioners to reduce energy usage during peak hours.

Additionally, smart grid companies received recognition during this “breakout year for smart grid,” as the report mentioned that the top seven companies in the industry comprise 94% of the smart grid venture capital ($344 million): GridPoint, Tendril Networks, eMeter, Silver Spring, BPL Global, EKA systems and Trilliant.

Biofuels have remained somewhat stable, with no gains. However, the power structure is beginning to change. As technology improves, investments have begun to slow in large first-generation ethanol and biodiesel refineries and may be refocusing their interests in algae biodiesel companies, as biomass-to-biofuels venture capital rose significantly to $150 million.

Internationally, interests are continuing to rise in traditional sectors, such as energy generation. Europe and Israel’s top three sectors were solar, wind and biofuels.

The year saw mammoth deals in solar power in Germany, with the most significant country growth at an increase of over 200% from last year in clean tech investments, while the UK spread its investments across a wide range of clean technology sectors, though solar still led. Total investment in biofuels was down slightly from 2007 due to concerns regarding not only the ROI, but the effect investment could have on food prices.

China’s investment in clean technologies grew ($343 million), strengthened by numerous government initiatives. The year saw the enforcement of the Circular Economy Law, which punished companies that do not meet prescribed reduction, reuse or recycling directives.

India’s investments dropped 20% from the previous year to $456 million. India, however, triumphed over the global fourth quarter slowdown, a result of the SE Forge deal to develop crystalline silicon. One company mentioned was d.light design, a startup that is working with several organizations to replace the kerosene lantern in India with solid state LED lighting that is solar chargeable.

Both China and India were given limited coverage, and it is suspected by the Cleantech Group that there are likely a significant number of unreported and undisclosed deals, making the true investment total higher.

The Cleantech Group made the annual report and fourth quarter investment monitor for 2008, normally only released to members, available to the public for the week in honor of Earth Day, and you can download a copy here.

Once merely the bane of poorly-managed backyard pools and shellfish enthusiasts, humble algae may soon become one of humanity’s best allies in the battle against climate change. And unlike other forms of green energy currently rising to the fore, the clean fuel delivered by algae would require significantly less retooling of current infrastructures, meaning lower costs involved in the changeover, and a shorter timeline to widespread adoption. 

Many other popular biofuels boast rapid rates of growth and reproduction. Poplar trees reach maturity after six years, quite fast for a tree, while most other biofuels can be successfully harvested after only a season. But unicellular algae reproduce with such astounding speed and efficiency that while the organisms remain roughly the same size, their populations can go from filling a petri dish to filling a biofuel plant within a matter of days. 

Biofuel algae also bring another tremendous biological advantage to the table: while most biofuel processing involves harvesting some form of sugar or cellulose and then converting it into ethanol, strains of biofuel algae naturally produce their own oils, which can be fed into biofuel engines with minimal processing.   

As if these advantages weren’t reason in themselves to pursue algae as a source of clean fuel, the microorganism can be grown in essentially any environment where salt water and sunlight are available. And to top it all off, energy production from biofuel algae projects is massive, yielding 30 times more energy per acre than its terrestrial competition.

The major limiting factors in the adaptation of algal biofuel have been maintaining optimal conditions for algae growth. While it might seem easy enough to fence in a saltwater pond or section of ocean, small fluctuations in temperature, pH, salinity and sunlight levels can have a devastating impact on a population of microorganisms. Also, because only certain strains of algae produce oil in the fashion the biofuel producers desire, naturally occurring types of algae can contaminate a body of water or production facility, and starve biofuel algae of precious resources.

Harvesting the naturally-produced oils also presents some issues for algal biofuel production.  The single-celled organism must in some way be broken to harvest the oil, which requires a process to either crush its cell walls, dissolve them with a volatile chemical, or pop them with sudden changes in pressure or salinity. Each method presents technical challenges, and adds to the already high monetary cost of biofuels processed from algae. 

Still, even with these challenges taken into consideration, biofuel algae’s natural advantages look to make it one of the foremost players in the burgeoning clean energy market.

Related articles:
Carbon Capture: The Algae Alternative
Algae Into Ethanol With No Messy Harvesting
Algae Growing Faster as Biofuel Source
Soy Vey: Algae a Better Biodiesel
Algae Biofuels Summit Planned

Photo courtesy of IGB

This week Matter Network follows a filmmaking team launching their new biodiesel documentary “Fields of Fuel” at the Sundance Film Festival. Meanwhile biotech company Solazyme also made a Sundance debut. The film crew caught it all on video as seen on this page.

While “Fields of Fuel” consistently plays to sold-out audiences and standing ovations, Solazyme execs have also appeared on the Sundance scene with their new algae-derived biodiesel. Driving an unmodified diesel Mercedes through Park City ice and snow, Solazyme is keen to show the public that their new fuel performs as well or better than petroleum diesel in cold weather conditions.

Solazyme says algae is the best oil producing organism on the planet, and they believe algae-derived biodiesel production will scale very rapidly. Maybe Josh Tickell should consider adding “Green Pools of Fuel” to his film title.

Video web logs provided by Ryan Babenzein and Brian Graf.