ExxonMobil investment highlights growing interest in algae biofuel projects

by Jbs091309 f3 — September 16, 2009—The production of biofuels from algae gained new prominence this summer when ExxonMobil announced that it will invest up to $600 million in the technology, according to a newsletter from the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy (EERE). EERE notes that many small startup companies have also been exploring this biofuel source for some time.

ExxonMobil and Synthetic Genomics Inc. (SGI) formed a research and development alliance in July to explore the production of biofuels from photosynthetic algae. EERE explains that photosynthetic algae, such as single-celled “microalgae” and blue-green algae, are organisms that use sunlight to convert carbon dioxide into cellular oils and some long-chain hydrocarbons that can be processed into fuels and chemicals.

SGI researchers plan to take a systematic approach to find, optimize and engineer superior strains of algae, seeking to develop the systems for large-scale cultivation of algae and conversion of the organisms’ products into biofuels. ExxonMobil expects to spend $300 million on the project internally, while potentially awarding more than $300 million to SGI.

Many small startup companies are exploring the production of biofuels from algae without the involvement of major oil companies like ExxonMobil, notes EERE. Two examples are Aurora Biofuels, which has been cultivating algae in Florida since August 2007, and LiveFuels, which started up a pilot plant in Brownsville, Texas, in August 2009.

Aurora Biofuels cultivates its algae in open ponds of seawater, harvests the algae “in an energy-efficient, cost-effective manner,” and converts it to biodiesel. The company announced in March 2009 that it is successfully producing biodiesel to standards set by ASTM International, achieving consistency in fuel quality during its trial. The company plans to begin commercial production in 2012.

LiveFuels is also using open saltwater ponds at its Texas facility. But instead of mechanically processing the algae, LiveFuels is allowing filter-feeding fish and other aquatic herbivores to feed off the algae. The company then extracts the fish oil from the fish for conversion into biofuel and other products. LiveFuels plans to eventually develop commercial facilities along the coast of Louisiana, using agricultural pollution from the Mississippi River as nutrients for the algae.