ALGAE TO ETHANOL START-UP

Algenol, Dow Chemical Partner For Algae-To-Fuel Pilot Plant
Mara Lemos Stein, June 30, 2009 (Dow Jones Clean Technology Insight via CNN Money)

"Start-up Algenol Biofuels Inc. has formed a partnership with The Dow Chemical Co. (DOW) to develop a $50 million, algae-to-fuel pilot- scale plant employing Algenol's technology, which the partners expect will be partly funded using Department of Energy [DOE] grants…[$480 million of the stimulus fund’s $786.5 million DOE grant program for biofuels is for the development of] integrated pilot- and demonstration-scale biorefineries…Dow Chemical [is] signing the grant application as a collaborator in the project.

"Algenol has enough equity to fund the remaining cost of the project, but it plans to seek further government funding in 2010 for other projects…Dow will contribute land, engineering and water-management expertise, its advanced materials technology as well as a main feedstock - carbon emissions - to the project."

Schematic of an Algenol plant. Funded by Dow Chemical and DOE. (click to enlarge)

"Algenol, launched in 2006 by four partners, has been running on private funds, with the founders themselves injecting $70 million into the company so far…Algenol has developed a genetic-enhancement technology that links the production of sugar from photosynthesis with the enzymes required to produce ethanol within an individual blue-green algae cell.

"The whole process occurs inside a plastic container measuring 6 by 100 feet, into which salt water and carbon dioxide are pumped. As sunrays flow in, ethanol molecules are produced and accumulated on the roof of the container, known as a photo-bioreactor, from where they are collected at regular intervals."

Artist's rendering of a field of algae, growing on slat water, sunlight and CO2. (click to enlarge)

"Dow's contributions will be "in-kind service" and technology…Dow plans to develop the advanced materials and specialty films for the photo-bioreactor system…[It] will also provide 24 acres at its Freeport, Texas, site for the construction of the pilot plant, water-treatment technology and access to a CO2 source for the biorefinery from a nearby manufacturing facility.

"As governments seek alternatives to fossil-fuel as a source of energy, chemical companies such as Dow and its competitor BASF Group have emerged as potential developers of energy storage capabilities such as lithium-ion batteries. This is a first investment in biofuels for Dow…It will also be working to develop bio-based ethylene from the Algenol-produced ethanol as a basis for green chemicals…[T]he pilot plant [will consume] consuming 2 metric tons of CO2 a day..."