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As pictured above, algae enters one of OriginOil’s tanks, and is quickly seperated into biomass and oil afterwards

Last Friday OriginOil applied for a patent. That patent is for a technology that makes extracting oil from algae an efficient, cheap, one-step process.

The business plan for OriginOil is to sell its technology to algae farmers who will use the extraction process to produce oil. Eckelberry says there are about 30 algae companies now, and he expects there to be over a 100 in the next year when he actually commercializes the technology.

If the company can advance this technology, the next step in its business is to sell modular systems to companies with factories throwing off CO2. He says those companies can channel their CO2 into tanks that have algae in them. The algae will grow off the CO2, then it can be processed and turned into fuel.

It’s a win-win for companies. They cut back on CO2 emissions, which are pricey in Europe where a cap and trade system exists, and might soon exist in the U.S. And companies also get a new source of fuel for themselves.

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