PetroSun/Algae Biofuels One Step Closer to Commercializing Algae-based Biofuels

[From RenewableEnergyAccess.com:]

PetroSun, Inc.'s field testing of the cultivation of algae for biodiesel production has progressed to the final stage prior to the construction of a commercial cultivation facility [see previous post on PetroSun].

This final stage will consist of producing adequate algae paste to test the output and economics of several biodiesel refinery manufacturers now under consideration by Algae Biofuels, a wholly owned subsidiary of PetroSun, which will own and operate the production and refinery facilities.

Algae BioFuels is considering sites in Arizona, New Mexico, California, Louisiana and Michigan for its initial commercial cultivation of algae feedstock in the U.S. In the foreign market, Australia and China are the leading candidates for production and refinery operations.

"Should the cultivation process prove to be successful outside of the U.S. Sunbelt, Algae BioFuels' model is to locate production and refinery sites near major cities and truck routes to reduce the cost of biodiesel in those areas," said Gordon LeBlanc, Jr., PetroSun, CEO.

The consumption of diesel fuel in the U.S. for on-highway use is 39 billion gallons per year and increasing over 3% annually. This represents 22% by sales and volume of the total U.S. transportation fuel market. The cost of diesel fuel has increased dramatically the past few years as a result of higher oil prices and refining costs due to the Ultra Low Sulfur diesel laws.

Algae-based biodiesel contains no sulfur, is non-toxic, highly biodegradable and is not subject to a commodity risk as is crude oil, corn and soybeans.

Algae BioFuels joins at least three other companies developing algae-based biofuel products - Solix Biofuels, whose in partnership with Colorado State University [previous post], GreenFuel Technologies Corporation [previous Energy Blog post and the cleantech business development company GreenShift (who is licensing technology developed at Ohio University) [previous Energy Blog post]. All four companies are developing algal bioreactors designed to feed off of waste CO2 and heat from industrial processes and powerplants, effectively recycling the CO2 from industrial or power plant emissions into algae-based biofuels.

While algae-based biofuels often take back seat to cellulosic ethanol when discussing second-generation biofuels, next-generation algae-based biofuels have the potential to scale large enough to actually make a significant impact on petroleum consumption. These companies are quietly commercializing these technologies, and I wish them luck in their efforts. If succesful, we could have yet another viable tool in our growing 'bag of tricks' to combat climate change, reduce our oil dependence and help us transition to a sustainable energy future.