Blatant Reality

The algae biofuel sector has had a pretty good year with many advances in the field. During this time, the world has seen funding for research from both public and private sources increase greatly, but there still hadn’t been too many announcements of plans to implement any of the various algae technologies currently being developed.

However, U.S. based OriginOil recently announced that they will be selling some of their algae products to an Australian energy company, representing their first sale of algae products to an algae producing customer.

In a recent press release by OriginOil, they stated that MBD Energy Limitedplans to purchase OriginOil’s Quantum Fracturing and Single-Step Extraction systems. These two systems will be coupled with MBD’s own proprietary algae growth system called the “Algae Synthesizer”.

MBD has already partnered with three of Australia’s largest coal power generators to build algae production test facilities that will harness the coal-fired power plant’s CO2 for algae growth. The goal of these facilities is to achieve Bio-CCS or Carbon, Capture and Storage from a biological source. OriginOil’s technology will help algae growth as well as oil extraction when production is initiated.

If each of the three coal-fired power stations installs an 80-hectare algae production plant, they could produce a combined 33 million liters (8.7 million gallons) of algal oil that could be used to create fuel or plastics as well as 75,000 tonnes (82,650 tons) of animal feed a year.

Before that can happen, OriginOil and MBD will have to complete phase one of their partnership, which involves equipping an MBD funded facility at James Cook University with OriginOil’s products and begin integrations between the two companies’ technologies. After this phase is completed, they will move on to a two-acre test site at a coal-fired power plant.

After this, their goal is to build a one-hectare algae pilot plant at the South Eastern  (one of the three power plants MBD is partnered with) where they hope to capture 700 tonnes of CO2 a year. Finally, if that is successful, they hope to expand the algae plant to the levels explained above.

“There are exciting developments beyond this,” OriginOil CEO Riggs Eckelberry explained, “but this already represents the most aggressive implementation of large-scale real-world algae production that we know of in the world today.”

Mr. Eckelberry also explained that while OriginOil originally developed their system for wastewater treatment and biodiesel refining, the Bio-CSS abilities of algae are attracting mining companies and their customers (like coal-fired power plants) who “are on a mission to do something about their CO2 emissions right NOW.”

The good news is that this sale will help propel OriginOil into the spotlight with regards to algae production and while their first sale may have been overseas, there are many commercial opportunities in the United States that they are looking to pursue in the future.

This post originally published on Celsias.com.

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.

Kiwi clean tech company in demand

BLENHEIM, NEW ZEALAND: New Zealand-based Aquaflow Bionomic Corporation announced today that it will collaborate, as a co-funding partner, with the United States Gas Technology Institute (GTI) on an advanced biomass conversion technology programme worth US$3.1million that will be part funded by the US Department of Energy.

In March, the company announced it would be working with Honeywell’s UOP on another algal technology project funded by the US Department of Energy. http://www.aquaflowgroup.com/wp-content/uploads/2010/04/media_release_3_3_20101.pdf

“We have reached another major milestone in expanding our US-based partnerships and project involvement and we are delighted to be working with GTI in this space,” comments Aquaflow director Nick Gerritsen.

Aquaflow will focus on expanding the algae biomass processing options it has available to deliver user-ready biofuels. The project’s initial phase will last 14 months.

“Both US projects demonstrate the breadth of the Aquaflow technology platform and its ability to work with partners to target and develop specific solutions in a complimentary fashion. The US Department of Energy is to be congratulated for its ongoing support. Without doubt this work will herald in the next generation of renewable fuels and chemicals from fresh algae biomass,” comments Gerritsen.

He adds that Aquaflow will continue to develop its own biomass conversion technology in parallel with the US project as this provides yet another conversion option.

“This project will demonstrate the conversion of algae biomass directly to gasoline and diesel fuel using integrated hydropyrolysis and hydroconversion technology,” says Terry Marker, Bioenergy Initiatives manager at Illinois-based GTI. “At GTI we believe the key to future algae utilization is developing economical processes for converting algae to hydrocarbon fuels.”

Jack Lewnard, GTI’s chief technology officer, adds, “We are pleased to have Aquaflow as a partner, given their pioneering role in developing cost-effective algae production and utilization processes.”

GTI is a leading not-for-profit research, development and training organization that has been addressing the US’ energy and environmental challenges by developing technology-based solutions for consumers, industry, and government for more than 65 years. To date, GTI programs have resulted in nearly 500 products, 750 licenses, and more than 1,200 associated patents.

New Zealand’s very own Aquaflow just announced that is has achieved several important milestones in creating ‘green crude’, their version of algae-based biofuel.
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It seems like everyone is beginning to abandon any biofuel mandate that could potentially lead to increases in food prices. Australia’s New South Wales joining in the trend by not implementing a mandate that would increase biofuel requirements to 10% by 2010.

NSW Premier Nathan Rees has ditched his predecessor’s commitment to introduce mandated levels of biodiesel in motor vehicles and boost ethanol levels from 2 per cent to 10 per cent.

 

In a setback for the biofuels industry, Mr Rees signalled yesterday that Morris Iemma’s mandate plans would not be implemented — putting himself at odds with Lands Minister Tony Kelly, who had insisted the Government backed the biofuels policy.

 

The about-face in NSW comes amid mounting evidence that biofuel mandates have contributed to growing world food shortages and rising prices.