ALGAE VS. CORN

Brasher: Algae as a fuel could skew corn's role
The corncob could be losing its special place in the nation's energy future.

"The 2007 energy bill required that refiners start using biofuels made from cobs, wheat straw, grasses and other sources of plant cellulose by 2010, with the mandate growing annually to reach 16 billion gallons by 2022…[N]ow there is an effort in Congress to expand that mandate to include fuels made from algae and microorganisms…[by replacing] the requirement for use of cellulosic biofuels with a broader mandate for "advanced green biofuels."

"The change could encourage investors to put more money into developing algae fuels. Until now, companies focused on turning cellulose into ethanol have had the mandate, and the powerful investment incentive it represents, all to themselves…"

It's easy to see why corn ethanol producers would be threatened by algae biofuels producers. (click to enlarge)

"Kevin Book, an analyst with ClearView Energy Partners, said the new definition could hurt cellulosic developers while aiding the algae sector. The fact that the Senate bill includes the expanded definition shows there is growing support for expanding the 2007 mandate beyond cellulosic fuels…Robert Brown, director of Iowa State University's Bioeconomy Institute, said he believes the mandate is big enough to accommodate algae- and cellulosic-based fuels…Senate Energy Committee Chairman Jeff Bingaman, D-N.M., is leading the effort to open the biofuel mandate to algae. The mandate "needs to be more technology- and feedstock-neutral," he said…An ethanol trade group, Growth Energy, is OK with expanding the mandate so long as it still covers cellulose…

"Algae — called "green crude" by supporters — consume carbon dioxide, a greenhouse gas, and produce fats that can be refined into gasoline, diesel or jet fuel. There is no need for the large amounts of land or the vast transportation and storage systems required for production of cellulosic fuels. Algae can be grown in ponds or even in vertical columns...ExxonMobil Corp. last summer invested $600 million into algae fuel research with Synthetic Genomics, a San Diego company led by J. Craig Venter, a pioneer in mapping the human genome. Officials with another San Diego firm, Sapphire Energy…said they will have small amounts of diesel and jet fuel available by 2011…[Ethanol producer] Green Plains Renewable Energy…has a pilot project producing algae with the carbon dioxide emitted by the plant."

An algae field could be like a corn field in the desert. (click to enlarge)

"The airline industry has shown interest in algae. The Air Transport Association is a member of a new trade group, the Algal Biomass Organization…Continental Airlines tested algae fuels in a plane last January…Airlines are worried about the volatility of oil prices and potentially higher costs for jet fuel as nations act to cut greenhouse gas emissions….

"Algae fuels are many years away from being commercially available…[but there] are signs that the young industry is making headway in an area where its ethanol rivals have had a long head start: Clout with Congress."