Blatant Reality

OriginOil, an algae biofuel technology developer, announced today that they have found their first customer wishing to obtain their technology. Check out the press release from OriginOil:

OriginOil Announces Its First Customer

Industry leader MBD Energy intends to purchase algae feeding and extraction systems

Los Angeles, CA May 10, 2010 – OriginOil, Inc. (OOIL), the developer of a breakthrough technology to transform algae, the most promising source of renewable oil, into a true competitor to petroleum, today announced that industry leader MBD Energy Limited has become the company’s first algae-producing customer. Anglo American, one of the world’s largest mining companies, is a cornerstone investor in MBD Energy.

The parties recently signed a Memorandum of Understanding on a multi-phase commercialization program under which OriginOil will supply MBD Energy, an Australia-based company, with its Quantum Fracturing™ and Single-Step Extraction™ systems. Andrew Lawson, Managing Director of MBD Energy, said: “We are delighted to become OriginOil’s first major customer and we look forward to working with the OriginOil team to forge a comprehensive commercial relationship with game-changing potential in the exciting third-generation biofuels space.”

Three of Australia’s largest coal fired power generators have committed to building test facilities adjacent to their power stations using MBD’s proprietary growth system, the Algae Synthesizer, where smoke-stack CO2 emissions are captured and used to grow oil-rich algae in solar bioreactors. This process effectively achieves BIO-CCS (Carbon Capture and Storage). In the full production systems, OriginOil’s technology will be integrated into the MBD system to enhance algae growth and perform oil extraction.

In the initial phase, OriginOil will equip MBD Energy’s research and development facility at James Cook University in Queensland, Australia, where testing will take place. The two companies agreed that, subject to the success of the initial test phase, MBD will purchase significantly larger feeding and OriginOil extraction units to serve facilities planned for its three Algal Synthesiser power station projects in Australia: Tarong Energy (Queensland), Loy Yang A (Victoria) and Eraring Energy (New South Wales).

Riggs Eckelberry, OriginOil CEO said: “We have been looking for a partner with the resources and scaling capabilities to rapidly industrialize algae production with a focus on the long-term development of our industry. We are delighted to have found this partner in MBD Energy.” Eckelberry added, “Many thanks go to MBD’s Larry Sirmans and Enrico Bombardieri, and our own Dr. Pattarkine, for their vision and persistence in making this partnership possible.”

Queensland Premier Anna Bligh officially opened MBD’s expanded R&D facility in November 2009. Premier Bligh said: “The revolutionary algal carbon capture and storage (BIO-CCS) technology is already proving successful in trials and will soon be rolled out at three coal fired power stations, including Tarong Power Station near Kingaroy. This technology has the potential to revolutionize carbon capture in Queensland and around the world.” She added: “As our state continues to grow and coal remains a key export, it is essential that we devise new ways to manage the impact of that growth on our environment.”

The Queensland Premier also announced that MBD would shortly commence construction of a one-hectare pilot plant at South Eastern Queensland’s Tarong Power Station. The trial aims to capture 700 tonnes of carbon dioxide annually and, if successful, could expand over the next 5 to 10 years to consume more than half of Tarong’s problem flue-gas emissions.

MBD’s Andrew Lawson said that each of the three current MBD power station projects has the potential to then grow to 80-hectare commercial plants, each capable of producing 11 million liters of oil for plastics and transport fuel, and 25,000 tonnes of drought proof animal feed annually. He said that the projects will eventually consume more than half of each of the power station’s problem flue-gas emissions.

OriginOil’s Quantum Fracturing System breaks down nutrients such as CO2 into micro-particles that stay suspended in water longer, allowing algae to feed more efficiently. The Single-Step Extraction system is the first commercial “wet” extraction system, able to separate algae oil from its biomass without costly and energy-intensive dewatering operations.

For those of you wondering, 11 million liters is equivalent to roughly 3 million gallons and 25,000 tonnes is about 27,500 tons.  These numbers are very impressive and it will be interesting to see how well the implementation goes over the next 5 to 10 years.

Here is another article I wrote for American Solutions about the recent formation of the “Congressional Coal Caucus.” Take a look:

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This past week, a bipartisan Congressional caucus consisting of three Republicans and three Democrats formed around the often-contentious issue of coal. This “Congressional Coal Caucus” has pledged to be a voice in Congress for the many coal-producing and coal-reliant communities located across the country.

The formation of this Congressional Caucus sends powerful signals to the energy industry and fellow members of Congress; it shows that various Congressional members from both sides of the aisle are determined to ensure that coal continues to play an important role in supplying our energy needs.

It also serves as a signal to President Obama, who has stated that he wants to bankrupt the coal industry, that energy policy must include positive incentives to use one of the most affordable and abundant sources of energy in the United States.

This bipartisan caucus has the potential to greatly influence the energy debate since the current cap-and-trade bill, H.R. 2454, barely passed the House in June. While all six of the founding members of the caucus voted against the bill’s passage, many fellow congressmen from coal-reliant states voted for it.

If the Congressional Coal Caucus is able to recruit enough members who originally supported H.R. 2454, they may be able to form a coalition to stop its final passage as well as other energy bills that would impose higher energy costs for all American taxpayers.

Coal provides Americans with affordable and reliable energy, in addition to many other resources such as oil, gas, and nuclear. In addition, coal supports over 130,000 jobs in the United States. With the U.S. harboring roughly a quarter of the known coal reserves in the world and some estimates showing that this supply should last for over two centuries, we have the resources in America to make help make us energy independent while also continuing to provide needed jobs for Americans.

The good news is that it is highly unlikely that the Senate will pass an exact version of H.R. 2454 or any cap and trade bill this year, so the House will have another chance to vote on the future energy policy of our nation.

Whether or not the outcome of that vote is friendly to reliable American energy, however, will depend on how actively American Solutions members are pressuring their elected leaders to vote against devastating energy taxes. It may also largely depend on how many members have joined this particular caucus.

If you live in a coal-dependent community or just support coal as a continued source of energy, call your member of Congress and ask if he or she has joined (or plans to join) the Congressional Coal Caucus.