Steve Keller Vijay Upadhyay

Kaiser Hussain Zachary Hess

World Total Energy Consumption

Key World Energy Statistics, 2009, p28. International Energy Agency.

Total Oil Consumption

Key World Energy Statistics, 2009, p33. International Energy Agency

Key World Energy Statistics, 2009, p20. International Energy Agency

Biofuel VoD Ethanol, diesel, methane from renewable sources Good

Less CO2 generationReduces energy needed to produce fuelCan be a “drop in” replacement for crude oil

products Neutral

○ Energy independence Bad

Can turn food crops into fuel cropsMay lose forests (carbon sinks)Burning them still generates CO2

Renewable Energy: R&D Priorities. IEA. 2006Energy Technology Essentials (ETE02). IEA. 2007

What Algae Fuel is?

http://www.youtube.com/watch?v=xbLACcUN4fQ

VoD For Algae Fuel or Oilgae Fuel

Compared to other biofuels most of them made from crops, algae grows much faster and contains much more energy per unit of weight.

Algae have the potential to yield greater volumes of biofuel per acre of production than other biofuel sources. Algae could yield more than 2000 gallons of fuel per acre per year of production.

Approximate yields for other fuel sources are far lower

AdvantagesThe yields of oil and fuels from algae are much higher (10-100 times) than competing energy crops.

Algae can grow practically anywhere, thus ensuring that there is no competition with food crops.

Algae are excellent bioremediation agents - they have the potential to absorb massive amounts of CO2 and can play an important role in sewage and wastewater treatment.

Algae are the only feedstock that have the potential to completely replace world's consumption of transportation fuels.

Resource: http://www.oilgae.com/ref/report/digest/digest.html

Oilgae Technology

Algae need water, sunlight and carbon dioxide to grow.

The oil they produce can then be harvested and converted into biodiesel; the algae’s carbohydrate content can be fermented into ethanol. Both are much cleaner-burning fuels than petroleum-based diesel or gas.

Algae + CO2 = Biofuel

MechanicalChemical

Large-scale Biodiesel Production from Algae

In order to produce biodiesel from algae on a large-scale, the following conditions need to be met:

Ability to sustainably produce high-oil-yielding algae strains on a large-scale.

Ability to extract the oil from the algae on a large scale. Capability for large-scale conversion of algal oil into

biodiesel.

Design Parameters

Open SystemsAdvantages

○ Open pond, simple design○ Natural light○ Can use reclaimed or waste water

Disadvantages○ Require large amounts of land and water○ Algae contamination○ Risk of harming current ecosystem

Design Parameters (cont.) Closed Bioreactors (PBR)

Advantages○ Scalable○ Customized for specific Algae strain○ Higher yield with less water and land○ Control water temperature and nutrients

Disadvantages○ May require artificial light○ Needs sterilized water to prevent contamination○ Large upfront cost○ Needs CO2 added and oxygen removed

Design Parameters (cont.) Algae

Purchase from private culture collectionsGrown in natural water bodiesGenetically Engineered

○ Databank of algae strains○ Licensing patents○ Highest Yields

Value Chain Marketing

"food vs. fuel“Domestic fuel production

○ Obama wants to triple biofuel production by 2022Clean burning fuel

○ J.B. Hunt Trucking Company Tested algae fuel blend from startup SunEco 82% reduction in particulate emissions with no loss of power

DistributionUses existing fuel distribution infrastructure

○ Does not require flex-fuel cars like ethanolBiodieselJet Fuel

Value Chain

Sales and ServiceUS

○ State and Federal blending mandatesIn 2010, EPA renewable fuel standard require biofuels

make up 8.25% (13 billion gallons) of gasoline sales

○ $1 per gallon blenders' tax credit for biodiesel○ 2004-2009, expected to be renewed in 2010

European Union○ Exempt from fuel taxes

Value Chain: Technology Development

Technology already out there

Partner or Create new?

Value Chain:Product Design Product design based

on a partnership Generally, biofuel

made from the oil produced by algae in the reactors or pools siphoned to other pools based on oil content until able to be extracted to be made into biofuel.

Location?

Value Chain:Logistics and Manufacturing

Technology> location> build of ponds> growth of algae in ponds> harvesting> extraction of oils> transesterification> Biodiesel fuel

Potential IP issues: Any Patents that

would be in use would be ensured by our technology partner against infringement of others, having them use their particular methods of growth, harvest, and extraction.

Paddlewheels Oil secretion

chemicals Genetic mutations of

algae Chemicals used to

grow algae faster Tools used in

extraction Closed pool reactors

New IP’s: ???

Through ongoing technology development however most issues would arise in any growth additives for the algae, or tools used in harvesting and extraction

Time to Market

Large-scale plants entering market Competitive issues

Large percentage of fuel cost is harvesting & extraction

Lowest cost production will win

Enter now or wait for cost improvements?

???Questions???

References"Aurora Biofuels Pilot Algae Plant Produces Biodiesel |." American Fuels. Web. 08 Feb. 2010.

<http://www.americanfuels.info/2009/03/aurora-biofuels-pilot-algae-plant.html>.

"Exxon, a Longtime Biofuel Holdout, Makes a $600 Million Algae Fuel Investment | Sustainability | Fast Company."

FastCompany.com - Where ideas and people meet | Fast Company. Web. 07 Feb. 2010.

<http://www.fastcompany.com/blog/ariel-schwartz/sustainability/surprise-longtime-biofuel-holdout-exxon-makes-600-million-

algae-f?nav=inform-rl>.

"Five Companies That Are Turning Algae Into Energy | Sustainability | Fast Company." FastCompany.com - Where ideas and

people meet | Fast Company. Web. 07 Feb. 2010. <http://www.fastcompany.com/blog/ariel-schwartz/sustainability/when-

will-we-see-commercial-scale-algae-fuel?nav=inform-rl>.

France. International Energy Agency. Energy Technologies at the Cutting Edge. 2005. Web.

France. International Energy Agency. Key World Energy Statistics. 2009. Web.

France. International Energy Agency. Renewable Energy: R&D Priorities. 2006. Web.

"McKinsey Quarterly: The Online Journal of McKinsey & Company." Articles by McKinsey Quarterly: Online Business

Journal of McKinsey & Company. Business Management Strategy - Corporate Strategy - Global Business

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%2fwww.mckinseyquarterly.com%2fThe_ethanol_challenge_for_the_United_States_2466%3fpagenum

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References (Cont) "About Us." Home. Web. 08 Feb. 2010. <http://growdieselevent.com/aboutus.aspx>. "Algae Biofuel Becoming a Reality?" EcoSherpa | Sustainable Living. Web. 08 Feb. 2010.

<http://www.ecosherpa.com/green-energy/algae-biofuel-becoming-a-reality/>. "Algae Biofuel Becoming a Reality?" EcoSherpa | Sustainable Living. Web. 08 Feb. 2010.

<http://www.ecosherpa.com/green-energy/algae-biofuel-becoming-a-reality/>. "Algae Biofuels Offer Enormous Promise, Face Tough Production and Cost Challenges to Scale." Green Car Congress.

Web. 08 Feb. 2010. <http://www.greencarcongress.com/2008/10/algae-biofuels.html>. "Algae fuel -." Wikipedia, the free encyclopedia. Web. 08 Feb. 2010. <http://en.wikipedia.org/wiki/Algal_fuel>. Biodiesel from Algae Oil - Oilgae - Information, News, Links for Algal Fuel, Alga Bio-diesel, Biofuels, Algae Biofuel,

Energy - oilgae.com. Web. 08 Feb. 2010. <http://www.oilgae.com/>. "Patents." Google. Web. 09 Feb. 2010. <http://www.google.com/patents>. "Photosynthetic oil production in a ... - Patent Search." Google. Web. 08 Feb. 2010. <http://www.google.com/patents?

id=UumoAAAAEBAJ&pg=PA2&dq=algae+biofuel&source=gbs_selected_pages&cad=2#v=onepage&q=algae%20biofuel&f=false>.

"PADDLEWHEEL APPARATUS - Patent Search." Google. Web. 09 Feb. 2010. <http://www.google.com/patents/about?id=OcnIAAAAEBAJ&dq=algae+biofuel+paddlewheel>.

"Algenol Biofuels Inc." Algenol Biofuels - Harnessing the Sun to Fuel the World. Web. <http://www.algenolbiofuels.com/default.html>.

DLOUHY, JENNIFER A. "Obama unveils plan for alternative fuels.“ Houston Chronicle, 3 Feb. 2010. Web. 03 Feb. 2010. <http://www.chron.com/disp/story.mpl/business/6849995.html>.

Finley, Russ. "US Biodiesel: The Never-ending Subsidy Story." Energy Tribune, 3 Feb. 2010. Web. 03 Feb. 2010. <http://www.energytribune.com/articles.cfm?aid=3087>.

Levine, R., A. Oberlin, and P. Adriaens. "A Value Chain and Life-Cycle Assessment Approach to Identify Technological Innovation

Mollman, Steve. "'Green goo' biofuel gets a boost - CNN.com." CNN.com International - Breaking, World, Business, Sports, Entertainment and Video News. 24 Aug. 2009. Web. 04 Feb. 2010. <http://edition.cnn.com/2009/TECH/science/08/21/eco.algaebiofuel/index.html>.

Opportunities in Algae Biodiesel." University of Michigan. Web. <http://www-personal.umich.edu/~adriaens/Site/Welcome_files/Algae%20biodiesel%20value%20chain.pdf>.

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