HUGE NEWS FOR LITTLE ALGAE

Two huge pieces of news from the algae-as-biofuel world: (1) An independent lab proved the industry’s contention algals can be refined into high-octane jet fuel and (2) Bill Gates bought in.

As reported frequently by NewEnergyNews, algae represent the most likely source of future biofuels because (1) they have a big appetite for CO2 and can be fed directly from power plant exhaust, (2) are phenomenally fast-growing and produce much much more biofuel per acre than any other biofuel source, (3) are grown with recycled water and no chemical changes to the soil, (4) can be transported through existing petroleum oil pipelines and (5) can be refined into anything petroleum oils can be refined into.

Few, if any, of the agrofuels sources produce biofuels that could (potentially) so readily be substituted for petroleum-derived oil.

Algae are not without challenges that will delay their availability. The strains have not been precisely differentiated for refining purposes and algae-derived biofuels have never been produced at commercial scale so are still way too expensive.

It looks like that is all about to change.

With confirmation from Southwest Testing Institute that Solazyme’s algae-derived high octane jet fuel met the standards set by ASTM International, the unique value of algae as a biofuel feedstock is guaranteed. Although mixtures of agrofuels and petro-fuels have been used to fly airplanes, nothing like this kind of performance has yet been accomplished.

On the heels of their conquest of the skies, algae – which have been gathering a storm of investment attention in the last 1-to-2 years -- won perhaps their biggest stamp of approval yet. Microsoft founder Bill Gates’ personal investment company, which earlier this year took the billionaire-entrepreneur’s money out of ethanol, bought into Sapphire Energy.

Actually, NewEnergyNews got to Sapphire Energy ahead of Gates. (See ALGAE'S PROMISE ALMOST MAKES COAL LOOK GOOD)

As if that wasn’t enough of a signal,Vinod Khosla, another IT-industry billionaire and ethanol investor, recently scheduled to give the keynote address at an Algae-Biomass Summit.

Proof that the Solazyme strain and refining process yeilds a serviceable high-octane jet fuel is a milestone for algae. It adds to the likelihood it is the good bet it looks to be. More financing should finish the story. There is every reason to believe it will have a happy ending but it is still too soon for a buy-in from any but the likes of Gates, Khosla and bold gamblers.

Solazyme's technology. From MultiVuOnline via YouTube.

Algal Jet Fuel One Big Step Closer to Reality
Dave Demrjian, September 15, 2008 (Wired)
and
Bill Gates Goes For Algae, Invests in Biofuel Maker Sapphire energy
Keith Johnson (as reported by Russell Gold), September 17, 2008 (Wall Street Journal)

WHO
Solazyme (Jonathan Wolfson, CEO); Chevron; Southwest Testing Institute; Airlines and aircraft manufacturers; Cascades Investments LLC (Bill Gates’ personal investment vehicle); Sapphire Energy (Jason Pyle, CEO); Venrock (Rockefeller family venture capital vehicle); Arch Venture Partners; Wellcome Trust; ASTM International

WHAT
- Solazyme’s algae-derived oil, refined into a high-octane biofuel, demonstrated in a testing process by the independent Southwest Testing Institute it can meet criteria established by ASTM International for jet fuels.
- Sapphire Energy has raised $100 million in venture capital from Cascades, Venrock, Arch Venture Partners and Wellcome Trust.

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WHEN
- 3 years: Solazyme hopes to begin mass-production a competitive price.
- Developing a commercial-scale (10,000-barrel-a-day algae-derived oil) facility: Sapphire Energy
- Preparing development facilities: Inventure Chemical (building a test plant), PetroSun (developing an algae-derived aviation fuel in a saltwater pond).


WHERE
- High altitudes: Where other biofuels failed, where Solazyme’s algae-derived biofuel succeeded.
- Solazyme is based in San Francisco, CA
- Sapphire Energy is based in San Diego, CA

WHY
- Solazyme makes Soladiesel for autos.
- Airlines and aircraft manufacturers are eager to find a cheaper, cleaner liquid flight fuel.
- The Southwest Testing Institute findings: The algal jet fuel met D1655, 11 of the most challenging standards, did not freeze at high altitude and had the same density, stability and flashpoint of petroleum-based jet fuel.
- D1655 standards were set by ASTM International and verified by Southwest Testing Institute.
- Chevron has joined with Solazyme.
- Several companies are experimenting with a variety of bio-jet fuels processes.
- Virgin Atlantic has tested a biofuel in flight, KLM, Continental, JetBlue, and Air New Zealand are making plans with Boeing or Airbus. Darpa and the Air Force are interested.

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QUOTES
- Solazyme statement: "The Solazyme algae-based aviation kerosene has passed the biggest hurdles needed to successfully develop a commercial and military jet fuel fully consistent with existing engines and infrastructure,"
- Pyle, CEO, Sapphire Energy: The current investors “have indicated they will internally finance the company to commercial production…”
- Vinod Khosla, keynote speaker, Algae-Biomass Summit: “We keep looking at algae. We’ve looked at one to two dozen plants, haven’t yet found economics that work but still believe there is room for innovation to work and will keep looking…”