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Will Algae Fuels be more Abundant and Economical? 5

This article caught upon my eye when I was researching on the current status of algae biofuels. Its quite interesting and it explains the need of algae fuels from scratch and goes into details such as VC funding as well.
Research studies claim that the algae industry is getting there -growing, harvesting, separating and converting to useful oils is nearing completion which should reduce the production costs to a considerable extent.

I have summarized the cost of algae biofuels in the near future and some details regarding the VC funding and algae farmers.As discussed even before, algae biofuel production involves four stages:

a. Growing the algae
b. Harvesting the algae
c. Separating the oil
d. Rrefining the oil to useful fuels

Some algae enthusiasts believe that each acre of algae cultivation could theoretically produce the equivalent of thousands of gallons of oil per year, compared with an estimated yield of 18 to 335 gallons of ethanol per acre for traditional biofuel crops.A few others claim that algae-growing systems has the ability to yield 100,000 gallons per acre annually.

Currently, producing biodiesel from algal oil costs about $20 a gallon. But with all the attention being given each of the multiple steps in the fuel production process, some producers are projecting production costs as low as $1.50 a gallon. If costs drop that low within the next 10 years, algal biodiesel will begin to place an effective ceiling on the costs of petrol diesel. It will take time to scale up production, of course.

Here are some details about VCs and Algae Farmers

Dr. John Benneman, an eminent algae consultant exclaims that "VCs cannot come in here and just harvest ripened fruit, this is not shovel ready technology,?

Considering the immense technical risks and high capital costs of building an algae company, it doesn't seem like a reasonable venture capital play.And most if not all of the VCs categorize these investments as the longer-term in their portfolio. But given the size of the liquid fuels market, measured in trillions of dollars, not the customary billions of dollars, it makes some sense to take the low-percentage shot.

Check out this interesting article - http://bit.ly/dxZuv4
Fri April 09 2010 03:26:14 AM by Sumukhi algae  |  biodiesel  |  energy 2069 views

Comments - 1

  • Algal wrote:
    Sat April 17 2010 06:33:16 AM

    Its all down to cost effectivity. The best so far can be viewed at www.algalsolution.com

    Vote Up! 0 Vote Down! 0

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