DOE Plunks Down $78 Million for Algae Biofuels R&D

As a potential green fuel source, algae has a lot going for it. Also known as pond scum to anyone who owns a fish pond or lives near standing water, algae is as common as dirt, grows quickly with minimal care, can grow in ocean or wastewater and is extremely oily, which is a good thing if you want to make certain types of fuel. But the real bonus, according to ExxonMobil research, is that it has the potential to produce 2,000 gallons of fuel per acre as opposed to a paltry 250 gallons from corn, which has long been identified as an inefficient (and ethically challenged) fuel source. ExxonMobil has conducted extensive research on algae and Chevron, another oil and gas industry giant, has been working with algae as part of its overall biofuels program for years.

The Energy Department has selected two biofuels consortia to receive up to $78 million in Recovery Act money to develop commercially practical and sustainable production of algae-based biofuels that can be used in existing refining and fueling infrastructure.

Lots of algae species have characteristics that make them particularly suitable for specific types of fuels. Ideally, algae could produce reasonably-priced gasoline, diesel fuel and jet fuel.

"Advanced biofuels are crucial to building a clean energy economy," Energy Secretary Steven Chu said. "By harnessing the power of science and technology, we can bring new biofuels to the market and develop a cleaner and more sustainable transportation sector. This investment will help spur the creation of the domestic bio-industry, while creating jobs and reducing our dependence on foreign oil."

The $78 million is expected to be matched by more than $19 million from private and non-federal investment.

The two consortia to receive the money are the National Alliance for Advanced Biofuels and Bioproducts NAABB), which will get $44 million, and the National Advanced Biofuels Consortium (NABC) which will get up to $33.8 million.

Yes, algae does have a lot going for it, but there are challenges and problems that need to be overcome to turn algae into a practical, marketable fuel. NAABB will develop and demonstrate how to greatly increase production of algae biomass and efficiently harvest it and produce fuel. Right now there isn't a terribly efficient process for producing fuel from algae, which means it's expensive. The NAABB consortium is a collection of companies, universities and national laboratories.

NABC , which includes the National Renewable Energy Laboratory and the Pacific Northwest National Laboratory, will develop fuels compatible with the existing fueling and refining infrastructure. In other words, to make algae fuel production compatible with existing fuel production and delivery equipment — like gas pumps.

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