Current G8 meeting indicated that Fuel price will again soar as the economy picks up,it is estimated to rise above $150 /barrel. When in economic depression today, there has been increasing biofuel developments worldwide but more than 13 % are reported bankrupt due to intense economic problem.But more importantly lowered fuel price (fossil) below $50 dollars cannot compete with high biofuel operational cost.Currently, it seems more private companies and groups are emerging to invest and develop biofuels.With increasing cars of over 4 billion cars using fuel, emitting million of CO2 per year and depleting fossil fuel plus global climate change there is totally confident that fossil fuel must be reduced.In this scanario,biofuels developments have survived their hardest test, now that fossil fuel price will rise again, biofuel is cheered worldwide to competitively meet the demand.
Biofuel will be manufactured and traded worldwide-this is the future tomorrow.However, since it canbe manufactured it leaves gap and invite independent investors and developers to cater for their internal fuel demand or other regions.
Current technologies and development are making operational cost lower and making the product cheaper,affordable and competitive with the fossil fuel price tag. Algae is one of which has in the recent year increased from pond nuisance to bloom fuel for cars, food for animals, man as well as other goods derived and processed.
The PetroAlgae believes it is the closest company to commercialization of micro crops as a biofuel, will complete its microcrop demonstration farm in Florida this year and will commence booking revenues from technology licenses this year.
The company said that it is in discussions with customers in China, India, Japan, Italy, Portugal, Spain, Germany, the UK., Singapore, Finland and the U.S. In March, the company announced that GTB Power had signed to use or sublicense PetroAlgae technology to construct and operate ten facilities in the China, Taiwan, and the Japanese island of Yonaguni.
Chairman John Scott said in a statement to shareholders that “PetroAlgae’s business model is designed to generate revenues from licensing its technology (production systems, micro-crop strains, process controls, etc.) to those with the capital and market know-how to become high-volume producers. We consider our model to be the lowest-risk path to market-strength in what can be a high-risk, emerging industry. We are selling the tools that will allow producers to operate with maximum efficiency in a price-sensitive, competitive environment.”
The company has refocused its position around a broader group of micro-crops — including macroalgae, microalgae, diatoms, micro-angiosperms, and cyanobacteria that can be harvested daily, making maximum use of land, water and energy, and requiring water, nutrients, carbon dioxide and sunlight, and non-arable land.
“We select the best microorganism for each specific location, indigenous to the region,” said Scott, “and then apply our distinct proprietary processes to scale from a microorganism to a high output-producing micro-crop.”
The company revealed that it is generating 40 grams per square meter per day production levels - equivalent to 400 kilograms of biomass per hectare per day, and that the company’s process can now convert carbohydrate content as well as lipids into fuel.
“PetroAlgae differentiates itself by adding physics into the mix,” said Scott. “All microcrops love sunlight. Managing the detail of how each microcrop gets the right sunlight, that’s the real secret sauce in this industry. We increase production output further with scientific and engineering expertise related to nutrition, bioreactor development and the hydrodynamics of mixing. Our proprietary processes for micro-crops result in double the growth compared to other producers.”
However, the company also confirmed that it has reconfigured its biomass-to-fuel strategy. Typical processes focus on extracting micro-algae from water, then extracting oil from the resultant algae paste, with leftover protein then destined for the animal feed market.
PetroAlgae is now using a curding process to separate the protein from the water, oils and carbohydrates, resulting in a highly concentrated animal feed that the company believes will have as high a value, per ton of overall biomass, as the oils and carbs that are converted to fuel. The high-protein content will be of particular interest to cattle ranchers feeding young animals to increase the animal growth rate.
The company said that it has developed and successfully tested the resulting gooey algae “mash”, containing oils and carbs, that can be refined from the mash in a normal refinery that produces “a spectrum of distillates that is weighted towards the diesel side of the refinery,” according to Scott. The result? A renewable, drop-in “green diesel”.
The company confirmed that it has tested the fuel production with prospective licensing partners who are refiners that can utilize the fuel in their own downstream distribution, and that the initial licensees for the company will be refineries.
Scott said that the company will not reach a 100 Mgy fuel production rate by the end of next year with its licensees; however, licensees will be able to generate algae within a few months of commencing a project, as the PetroAlgae model involves the construction of open ponds on a modular basis, so that the first ponds can be productive while others continue to be built out in its 12,500 acre model. The company re-confirmed that it will create 1200 jobs per 12,500 acre project.
The company also announced that it will open an office in Washington, DC with a staff of three to concentrate on bringing regulatory, lobbying and PR capabilities to the Company.