In March this year Mission NewEnergy’s plant in Kuantan became the first biodiesel facility outside of Europe to gain full by International Sustainability Carbon Certification (ISCC) certification.
This certification demonstrates compliance with German and European greenhouse gas (GHG) saving targets and means the Asian producer can export its biodiesel to Europe.
The Renewable Energy Directive requires a minimum of 35% saving in GHG emissions from the use of biofuels and bioliquids to qualify for the subsidies and other privileges. Using Felda’s crude palm oil to produce biofuel results in GHG savings of 47% and 41%, respectively.
Since achieving this certification, Mission NewEnergy has begun selling to Rotterdam. The company has also secured a six month contract for supply commencing in January 2012 (set up for the 2012 European summer) with a global oil major.
The same company has also just become the first jatropha producer to be ISSC certified.
This means the producer can now make the most of the multi-billion dollar opportunity the European market represents, something many other producers are also keen to have.
Vasu R. Vasuthewan, sales and marketing director at Mission NewEnergy and ISCC board member, will be speaking about these experiences at the upcoming Bioenergy International Asia expo & conference in Kuala Lumpur on 7-8 December 2011.
He joins other certification bodies including SGS and Bureau Veritas to give delegates an indepth understanding of what is required to meet European and US sustainability requirements.
As yet Mission NewEnergy has not been able to supply any of its biodiesel to the US. The company submitted an application for its g-Palm to be approved by the EPA on 15 September, and the product is currently under evaluation.
Other key speakers include Khoo Hock Aun, CEO of Cosmo Biofuels, TC Long Tian Ching, Managing Director, Vance Bioenergy, Rosediana Suharto, Indonesian Palm Oil Commission, Azman Bin Ahmad, CEO, Felda-Johore Bulkers and many more.
These industry experts will look at the production capacities and challenges in different Asian markets. For example, the Malaysian government officially launched the much awaited B5 palm oil biodiesel blending mandate on 1 June 2011. This is expected to go nationwide by 2013. With the introduction, Malaysia becomes the second country to implement the use of B5 - Indonesia has been using it since 2006 in selected cities and provinces. This follows Thailand, which introduced a B2 mandate in April 2008 and the Philippines introduced B1 in 2007.
Biofuel producers in Asia are facing mixed fortunes this year due to the impact of raw material costs on the competitiveness of different biofuels around the region. For everyone producing, trading, supplying, servicing or working in this sector, this event cannot be missed.
We hope to see many of you there!
Best wishes,
Rebecca
Wednesday, November 23, 2011
Tuesday, November 22, 2011
Biofuels, biomaterials growing at 3X the global GDP rate
Biofuels, biomaterials growing at 3X the global GDP rate
Jim Lane | October 19, 2011
11Share
Survey says: Biofuels and biomaterials growing rapidly, seeking new friends, markets
In Florida, Biofuels Digest reports that 79 percent of bioenergy executives are more optimistic both about their organization’s prospects for growth and industry growth, than 12 months ago, and that 72 percent are more optimistic about the industry’s prospects than at this time in 2010.
The findings were among the highlights of the Q2 2011 Bioenergy Business Outlook Survey conducted by Biofuels Digest and co-presented by the Biotechnology Industry Organization (BIO).
Growing at 3X the global GDP growth rate, jobs up 5% in next 12 months
Overall, the survey painted a picture of an industry that is expecting to grow at nearly triple the growth rate of the world economy (8.9 percent for the industry, compared to 3.2 percent for the total economy), but expecting to find generally less external support in the form of tangible support from government, and less IPO activity.
In Q1 of this year, 39 percent said that favorable government mandates, tariffs or tax credits would be a strong growth driver, but only 31 percent said so in the Fall survey.
“The bottom line: the biomaterials industry is looking for new friends, new markets, new avenues to finance,” commented Jim Lane, editor and publisher of Biofuels Digest. “They understand now that, in order to fulfill their substantial promise, they not only have to pioneer novel technologies, but novel business models and pathways to commercialization.”
The nature of financing is changing. Merger activity is expected to increase. The industry sees the IPO window as substantially less open in the next 12 months than the past year, but report a generally higher success rate in obtaining new finance.
Geographies are changing in importance for them. They generally cite the US, EU and Brazil as the key markets for growth. Fast growing in importance: Australia/New Zealand and the Pacific, cited by 23 percent of respondents as a key growth geography (“outside of your home country”), up from 17 percent in the spring survey and 13 percent in Q1 of this year.
Respondents continue to chill out on the prospects for cellulosic ethanol. Though 50 percent of respondents expect that sector to reach 1 billion gallons in capacity, 67 percent indicated the same belief in Q1 of this year. Holding steady or increasing in importance, among the fuel types: aviation and algae-based fuels.
Revenue growth
Respondents said that they expect their firms to grow by a median 8.4 percent over the next 12 months, down from a median of 11.6 percent in the Q12 survey. Industry revenue is expected to grow 8.9 percent, up from 8.45 percent in the spring survey.
Respondents indicated that they have an average of $128 million in revenues per company.
Job growth
Those that are hiring, expect to hire big. The average job growth rate per company is expected to reach 50 percent in the next 12 months, but the median stands at 4.9 percent, meaning that 50 percent of companies expect to grow their employee base by less than 5 percent. 31 percent of respondents said that they did not expect to add new headcount in the next 12 months.
Respondents indicated that they have, on average, 102 employees per company.
IPO activity
58 percent of respondents said that they expect to see more completed IPOs in the next 12 months, compared to the past 12. That’s sharply down from the 74 percent who answered “yes” in the spring survey.
Mergers and consolidations
77 percent of respondents said that they expected to see more mergers and consolidations in the next 12 months, compared to the past year., That number has risen slowly but steadily throughout the year, up from 74 percent in the spring survey and 72 percent in the Q1 poll.
Financing
48 percent of respondents tried for new financing in the past 12 months, down from 56 percent, and 53 percent of those that tried were successful. 56 percent said that they were going for new financing in the next 12 months.
Growth drivers
Respondents pointed to the rising demand for fuels as the single biggest driver of growth, with 54 percent tipping this as a major factor. 15 percent cited the entry of new companies, a small number but sharply up from the 9 percent cited in the spring survey, while 21 percent said that increased production capacity was driving growth, up from 15 percent in the spring.
Policy
Despite clouds over government activity in the US, 64 percent described the government attitude as supportive, up from 62 percent in the Q2 survey.
Among preferred policies, executives pointed strongly towards a carbon price, with 36 percent of respondents indicating this would be a strong growth driver, and increased subsidies and incentives were cited by 43 percent, up from 37 in the previous survey. 30 percent pointed to fuel-neutral legislation, while only 16 percent indicated that new mandates would drive growth.
Fuels
Among fuels, 50 percent of executives said they expect cellulosic ethanol, to reach 1 billion gallons by 2020, down from 52 percent in the spring. Aviation was flat at 50 percent, biobutanol fell to 23 percent from 28 percent in Q2. Gaining momentum was renewable diesel at 52 percent, up from 50 percent in the Q2 survey, while military biofuels jumped sharply from 34 to 42 percent.
Geography
68 percent of survey respondents are headquartered in the North America, 12 percent in Europe, 8 percent in Asia, 5 percent in Latin America and 3 percent in Australia/New Zealand.
In terms of company operations, 74 percent said that they operated in the US, 30 percent in Canada, 33 percent in the EU, 20 percent in East Aisa, 19 percent in South Asia, and 18 percent in Australia/NewZealand and the Pacific Islands.
Looking at regions that are key to company growth, 44 percent cited the US, up from 37 percent in the spring survey; 35 percent cited Canada, up from 31 percent, and 22 percent cited Australia/New Zealand and the Pacific, up sharply from 17 percent in the spring
….vacancy
Description:
Key Leadership Opportunity - Queensland, Australia
New Phase plant investment - growth industry
Excellent salary package, full relocation and genuine career opportunity
United Petroleum is an independent and successful Australian owned oil company which has recently acquired Dalby Bio-Refinery Limited (DBRL). Leading a highly skilled team at an exciting time for the Ethanol business, DBRL is seeking an experienced General Manager for the management of Health, Safety, and Environment, the plant operations, plant management and capital expansion programmes.
The ideal candidate will be able to demonstrate:
Proven experience in managing chemical production plants or fuel refineries
A Degree qualification in chemical engineering or chemistry
Production, quality and cost budget achievements
Project management / direction in major capital expenditure
Experience in the development of plant maintenance programmes
Strong financial and commercial acumen
Experience working in a quick decisions based business culture
Previous experience in an Ethanol plant will be a distinct advantage
In return United will be able to offer an exciting opportunity within a growth sector, an excellent salary package and the ability to become instrumental in the business moving forward.
For a confidential discussion please call Peter Starling on +61 7 3405 3346 or +61 (0) 449 903 792. Please forward all applications to peter.starling@kellyexecutive.com.au
Jim Lane | October 19, 2011
11Share
Survey says: Biofuels and biomaterials growing rapidly, seeking new friends, markets
In Florida, Biofuels Digest reports that 79 percent of bioenergy executives are more optimistic both about their organization’s prospects for growth and industry growth, than 12 months ago, and that 72 percent are more optimistic about the industry’s prospects than at this time in 2010.
The findings were among the highlights of the Q2 2011 Bioenergy Business Outlook Survey conducted by Biofuels Digest and co-presented by the Biotechnology Industry Organization (BIO).
Growing at 3X the global GDP growth rate, jobs up 5% in next 12 months
Overall, the survey painted a picture of an industry that is expecting to grow at nearly triple the growth rate of the world economy (8.9 percent for the industry, compared to 3.2 percent for the total economy), but expecting to find generally less external support in the form of tangible support from government, and less IPO activity.
In Q1 of this year, 39 percent said that favorable government mandates, tariffs or tax credits would be a strong growth driver, but only 31 percent said so in the Fall survey.
“The bottom line: the biomaterials industry is looking for new friends, new markets, new avenues to finance,” commented Jim Lane, editor and publisher of Biofuels Digest. “They understand now that, in order to fulfill their substantial promise, they not only have to pioneer novel technologies, but novel business models and pathways to commercialization.”
The nature of financing is changing. Merger activity is expected to increase. The industry sees the IPO window as substantially less open in the next 12 months than the past year, but report a generally higher success rate in obtaining new finance.
Geographies are changing in importance for them. They generally cite the US, EU and Brazil as the key markets for growth. Fast growing in importance: Australia/New Zealand and the Pacific, cited by 23 percent of respondents as a key growth geography (“outside of your home country”), up from 17 percent in the spring survey and 13 percent in Q1 of this year.
Respondents continue to chill out on the prospects for cellulosic ethanol. Though 50 percent of respondents expect that sector to reach 1 billion gallons in capacity, 67 percent indicated the same belief in Q1 of this year. Holding steady or increasing in importance, among the fuel types: aviation and algae-based fuels.
Revenue growth
Respondents said that they expect their firms to grow by a median 8.4 percent over the next 12 months, down from a median of 11.6 percent in the Q12 survey. Industry revenue is expected to grow 8.9 percent, up from 8.45 percent in the spring survey.
Respondents indicated that they have an average of $128 million in revenues per company.
Job growth
Those that are hiring, expect to hire big. The average job growth rate per company is expected to reach 50 percent in the next 12 months, but the median stands at 4.9 percent, meaning that 50 percent of companies expect to grow their employee base by less than 5 percent. 31 percent of respondents said that they did not expect to add new headcount in the next 12 months.
Respondents indicated that they have, on average, 102 employees per company.
IPO activity
58 percent of respondents said that they expect to see more completed IPOs in the next 12 months, compared to the past 12. That’s sharply down from the 74 percent who answered “yes” in the spring survey.
Mergers and consolidations
77 percent of respondents said that they expected to see more mergers and consolidations in the next 12 months, compared to the past year., That number has risen slowly but steadily throughout the year, up from 74 percent in the spring survey and 72 percent in the Q1 poll.
Financing
48 percent of respondents tried for new financing in the past 12 months, down from 56 percent, and 53 percent of those that tried were successful. 56 percent said that they were going for new financing in the next 12 months.
Growth drivers
Respondents pointed to the rising demand for fuels as the single biggest driver of growth, with 54 percent tipping this as a major factor. 15 percent cited the entry of new companies, a small number but sharply up from the 9 percent cited in the spring survey, while 21 percent said that increased production capacity was driving growth, up from 15 percent in the spring.
Policy
Despite clouds over government activity in the US, 64 percent described the government attitude as supportive, up from 62 percent in the Q2 survey.
Among preferred policies, executives pointed strongly towards a carbon price, with 36 percent of respondents indicating this would be a strong growth driver, and increased subsidies and incentives were cited by 43 percent, up from 37 in the previous survey. 30 percent pointed to fuel-neutral legislation, while only 16 percent indicated that new mandates would drive growth.
Fuels
Among fuels, 50 percent of executives said they expect cellulosic ethanol, to reach 1 billion gallons by 2020, down from 52 percent in the spring. Aviation was flat at 50 percent, biobutanol fell to 23 percent from 28 percent in Q2. Gaining momentum was renewable diesel at 52 percent, up from 50 percent in the Q2 survey, while military biofuels jumped sharply from 34 to 42 percent.
Geography
68 percent of survey respondents are headquartered in the North America, 12 percent in Europe, 8 percent in Asia, 5 percent in Latin America and 3 percent in Australia/New Zealand.
In terms of company operations, 74 percent said that they operated in the US, 30 percent in Canada, 33 percent in the EU, 20 percent in East Aisa, 19 percent in South Asia, and 18 percent in Australia/NewZealand and the Pacific Islands.
Looking at regions that are key to company growth, 44 percent cited the US, up from 37 percent in the spring survey; 35 percent cited Canada, up from 31 percent, and 22 percent cited Australia/New Zealand and the Pacific, up sharply from 17 percent in the spring
….vacancy
Description:
Key Leadership Opportunity - Queensland, Australia
New Phase plant investment - growth industry
Excellent salary package, full relocation and genuine career opportunity
United Petroleum is an independent and successful Australian owned oil company which has recently acquired Dalby Bio-Refinery Limited (DBRL). Leading a highly skilled team at an exciting time for the Ethanol business, DBRL is seeking an experienced General Manager for the management of Health, Safety, and Environment, the plant operations, plant management and capital expansion programmes.
The ideal candidate will be able to demonstrate:
Proven experience in managing chemical production plants or fuel refineries
A Degree qualification in chemical engineering or chemistry
Production, quality and cost budget achievements
Project management / direction in major capital expenditure
Experience in the development of plant maintenance programmes
Strong financial and commercial acumen
Experience working in a quick decisions based business culture
Previous experience in an Ethanol plant will be a distinct advantage
In return United will be able to offer an exciting opportunity within a growth sector, an excellent salary package and the ability to become instrumental in the business moving forward.
For a confidential discussion please call Peter Starling on +61 7 3405 3346 or +61 (0) 449 903 792. Please forward all applications to peter.starling@kellyexecutive.com.au
Friday, November 4, 2011
Jatropha-Australia recent.
In Australia, Mission NewEnergy reports they have materially completed their 2011 Jatropha tree planting season, adding 40,264 new acres and 14,331 new Jatropha contract farmers. The Company has reported strong progress on the expansion of its acreage profile and now has a total of 234,587 acres under contract representing a total of over 164 million trees, and 4.7 million barrels of jatropha oil when the trees mature.
Tuesday, October 18, 2011
Algae is back!
Source: biofueldigest
Iowa algae and corn ethanol project points the way towards optimizing delivery of feed, fuel, carbon reduction.
In our 10-part series, the Bioenergy Project of the Future, based on extensive interviews with industry leaders, we outlined what is expected to be the multi-product, multi-input structure of biofuels and biomaterials projects in the future.
In step 1, we identified the acquisition of an existing first-generation ethanol plant as an appropriate base, because it had so many assets already in place, including a feedstock aggregation system, relations with growers and customers, rail lines, roads, water, power and so on.
In steps two through nine, project developers would add in a variety of inputs and outputs that would increase the product value, stabilize the input costs, and improve the carbon footprint and impact of the project.
2. Cellulosic biomass feedstock
3. Renewable chemicals
4. Advanced drop-in biofuels
5. Algal fuels and materials
6. Bio-ammonia
7. Renewable diesel
8. Lowest-cost waste feedstocks
9. Solar, wind and other renewables
Bioenergy Projects of the Future, today
The most complete realizations of that vision at scale, to date, are the POET Liberty Project in Emmetsburg, Iowa; the Gevo biobutanol project in Luverne, Minnesota; the Amyris SMA Indústria Química project in Brazil; and the Green Plains Renewable Energy project in Shenandoah, Iowa – in which an algal fuels and biomaterials project in underway in partnership with BioProcessAlgae.
The Green Plains project is by far the least-known of the three – given POET’s position as the largest privately-owned, dedicated ethanol producer, and given the deserved hoopla over Amyris’ and Gevo’s successful IPOs in the past year.
In the POET project, they have taken on the most direct route to the Bioenergy Project of the Future, by adding in cellulosic biomass feedstock, and moving on to the production of fuels in 2013 when the 25 million gallons Project LIBERTY plant officially opens at scale.
In the Amyris project, they have established a joint venture with an existing 8.5 million tonne sugarcane ethanol project in Pradópolis, Sao Paulo state, Brazil, owned by Usina São Martinho. Starting in Q2 2012, Amyris and São Martinho plan for the joint venture plant to produce Biofene, a renewable hydrocarbon, which would be used as an ingredient in detergents, cosmetics, perfumes, industrial lubricants, and diesel. In their case, they are still testing out cellulosic feedstocks, but have added in renewable chemicals and renewable diesel to expand their high-value product portfolio.
In the Gevo project, they have acquired an existing corn ethanol plant as a base, and are busy converting that production over to isobutanol, which is scheduled to commence at-scale in March 2012. In the Gevo case, they have skipped over (for now) the addition of cellulosic feedstock, but likewise added in renewable chemicals and advanced drop-in fuels to diversify the product portfolio.
The Algae Option
Of all of them, the Green Plains Renewable Energy and BioProcess Algae project in Shenandoah is the first to reach step five of the multi-step transition we identified – which is to bolt-on an algal fuels and materials capability to an existing corn ethanol production system
It’s all still at relatively small-scale. The partners will have to prove they can sustainably produce, harvest and process the algae. But it’s significant in three ways, for sure.
First, it massively changes the carbon footprint and impact of a corn ethanol project. Almost one-third of the corn kernel, by weight, is transformed into carbon dioxide in the ethanol fermentation process, and the algae can remediate that usage by absorbing the CO2 in its own growth process. It’s not carbon sequestration – that’s different, because the algae itself will be utilized for fuels and biomaterials. But it is capture and re-use, or a second bite of the cherry, and dilutes the carbon impact by creating a second batch of fuels or materials for the same given bushel of corn.
(You may be wondering how they grow algae at all in the state of Iowa during the colder six months of the year, without using bioreactors that are simply too cost intensive. Ah, that’s where the process heat and steam that comes off an ethanol paint comes in handy.)
Second, it changes the economics of the corn ethanol project. Though it remains exposed to the commodity price swings in the corn market, except to the extent to which it can achieve fixed-price or partially-fixed contracts with growers – it is far less exposed to the commodity price of ethanol. Biodiesel, for example, comes into play, or other bio-based materials made from algae – omega-3 laden fatty acids, for example that make for rich protein.
More importantly, the economics of algae do not work unless a project is using the entire biomass – either for feed, to gasify for fuel, or to provide energy back to the system. So, making algae work as a feed system is important to the economics.
Third, making algae work as a secondary feed source can substantially add to the feed options available to the meat and dairy industries, that have been sore as heck in having to compete with ethanol plants for corn-based feed, and have been running a first class, textbook “fear, uncertainty and doubt” campaign against ethanol that has befooled and beguiled, apparently, most of the US Congress.
So – for many reasons, one of the big question marks is whether algae strains that can tolerate industrial gases will work as an animal feed.
The big question: will it work as animal feed?
So it is significant that, yesterday, Green Plains Renewable Energy and BioProcess Algae announced the successful completion of the first round of algae-based poultry feed trials. The algae strains produced for the feed trials demonstrated high energy and protein content that was readily available, similar to other high value feed products used in the feeding of poultry today.
The algae strains used in the feed trials were grown in BioProcess Algae’s Grower Harvester reactors co-located with Green Plains’ ethanol plant in Shenandoah, Iowa. The test was conducted in conjunction with the University of Illinois led by Dr. Carl M. Parsons, a leading expert in the field of poultry sciences.
“This was the first time we tested algae as a poultry feed-product and many of the qualities found were similar to high protein soymeal, but with higher energy content,” said Dr. Parsons. In addition to the high energy and protein content, the testing found amino acid profiles similar to existing feed components. The University of Missouri analyzed the results and provided an independent third-party validation.
“Based on these first-round tests, we will continue the development of this and other high-quality animal feed products from our algae. We will proceed with further testing for poultry and begin evaluating a replacement product for fishmeal,” said Tim Burns, Chief Executive Officer of BioProcess Algae. “We can now look into the opportunity to use algae as a ‘carrier’ for higher value products going into poultry feed such as Omega-3s.”
Next steps
So, there’s reason for increased optimism on the algal fuels and materials front. Next steps for BioProcess Algae include further feed trials, and more importantly, continuing to knock down the production cost. Their current costs, at the scale they are producing, are sure to be too high, but how fast they knock them down in their science of growth and engineering of a low-cost production system will be key. We expect that, if they had a path to parity with $80 oil already figured out, the public might well have heard about it.
For now, we stay tuned.
Iowa algae and corn ethanol project points the way towards optimizing delivery of feed, fuel, carbon reduction.
In our 10-part series, the Bioenergy Project of the Future, based on extensive interviews with industry leaders, we outlined what is expected to be the multi-product, multi-input structure of biofuels and biomaterials projects in the future.
In step 1, we identified the acquisition of an existing first-generation ethanol plant as an appropriate base, because it had so many assets already in place, including a feedstock aggregation system, relations with growers and customers, rail lines, roads, water, power and so on.
In steps two through nine, project developers would add in a variety of inputs and outputs that would increase the product value, stabilize the input costs, and improve the carbon footprint and impact of the project.
2. Cellulosic biomass feedstock
3. Renewable chemicals
4. Advanced drop-in biofuels
5. Algal fuels and materials
6. Bio-ammonia
7. Renewable diesel
8. Lowest-cost waste feedstocks
9. Solar, wind and other renewables
Bioenergy Projects of the Future, today
The most complete realizations of that vision at scale, to date, are the POET Liberty Project in Emmetsburg, Iowa; the Gevo biobutanol project in Luverne, Minnesota; the Amyris SMA Indústria Química project in Brazil; and the Green Plains Renewable Energy project in Shenandoah, Iowa – in which an algal fuels and biomaterials project in underway in partnership with BioProcessAlgae.
The Green Plains project is by far the least-known of the three – given POET’s position as the largest privately-owned, dedicated ethanol producer, and given the deserved hoopla over Amyris’ and Gevo’s successful IPOs in the past year.
In the POET project, they have taken on the most direct route to the Bioenergy Project of the Future, by adding in cellulosic biomass feedstock, and moving on to the production of fuels in 2013 when the 25 million gallons Project LIBERTY plant officially opens at scale.
In the Amyris project, they have established a joint venture with an existing 8.5 million tonne sugarcane ethanol project in Pradópolis, Sao Paulo state, Brazil, owned by Usina São Martinho. Starting in Q2 2012, Amyris and São Martinho plan for the joint venture plant to produce Biofene, a renewable hydrocarbon, which would be used as an ingredient in detergents, cosmetics, perfumes, industrial lubricants, and diesel. In their case, they are still testing out cellulosic feedstocks, but have added in renewable chemicals and renewable diesel to expand their high-value product portfolio.
In the Gevo project, they have acquired an existing corn ethanol plant as a base, and are busy converting that production over to isobutanol, which is scheduled to commence at-scale in March 2012. In the Gevo case, they have skipped over (for now) the addition of cellulosic feedstock, but likewise added in renewable chemicals and advanced drop-in fuels to diversify the product portfolio.
The Algae Option
Of all of them, the Green Plains Renewable Energy and BioProcess Algae project in Shenandoah is the first to reach step five of the multi-step transition we identified – which is to bolt-on an algal fuels and materials capability to an existing corn ethanol production system
It’s all still at relatively small-scale. The partners will have to prove they can sustainably produce, harvest and process the algae. But it’s significant in three ways, for sure.
First, it massively changes the carbon footprint and impact of a corn ethanol project. Almost one-third of the corn kernel, by weight, is transformed into carbon dioxide in the ethanol fermentation process, and the algae can remediate that usage by absorbing the CO2 in its own growth process. It’s not carbon sequestration – that’s different, because the algae itself will be utilized for fuels and biomaterials. But it is capture and re-use, or a second bite of the cherry, and dilutes the carbon impact by creating a second batch of fuels or materials for the same given bushel of corn.
(You may be wondering how they grow algae at all in the state of Iowa during the colder six months of the year, without using bioreactors that are simply too cost intensive. Ah, that’s where the process heat and steam that comes off an ethanol paint comes in handy.)
Second, it changes the economics of the corn ethanol project. Though it remains exposed to the commodity price swings in the corn market, except to the extent to which it can achieve fixed-price or partially-fixed contracts with growers – it is far less exposed to the commodity price of ethanol. Biodiesel, for example, comes into play, or other bio-based materials made from algae – omega-3 laden fatty acids, for example that make for rich protein.
More importantly, the economics of algae do not work unless a project is using the entire biomass – either for feed, to gasify for fuel, or to provide energy back to the system. So, making algae work as a feed system is important to the economics.
Third, making algae work as a secondary feed source can substantially add to the feed options available to the meat and dairy industries, that have been sore as heck in having to compete with ethanol plants for corn-based feed, and have been running a first class, textbook “fear, uncertainty and doubt” campaign against ethanol that has befooled and beguiled, apparently, most of the US Congress.
So – for many reasons, one of the big question marks is whether algae strains that can tolerate industrial gases will work as an animal feed.
The big question: will it work as animal feed?
So it is significant that, yesterday, Green Plains Renewable Energy and BioProcess Algae announced the successful completion of the first round of algae-based poultry feed trials. The algae strains produced for the feed trials demonstrated high energy and protein content that was readily available, similar to other high value feed products used in the feeding of poultry today.
The algae strains used in the feed trials were grown in BioProcess Algae’s Grower Harvester reactors co-located with Green Plains’ ethanol plant in Shenandoah, Iowa. The test was conducted in conjunction with the University of Illinois led by Dr. Carl M. Parsons, a leading expert in the field of poultry sciences.
“This was the first time we tested algae as a poultry feed-product and many of the qualities found were similar to high protein soymeal, but with higher energy content,” said Dr. Parsons. In addition to the high energy and protein content, the testing found amino acid profiles similar to existing feed components. The University of Missouri analyzed the results and provided an independent third-party validation.
“Based on these first-round tests, we will continue the development of this and other high-quality animal feed products from our algae. We will proceed with further testing for poultry and begin evaluating a replacement product for fishmeal,” said Tim Burns, Chief Executive Officer of BioProcess Algae. “We can now look into the opportunity to use algae as a ‘carrier’ for higher value products going into poultry feed such as Omega-3s.”
Next steps
So, there’s reason for increased optimism on the algal fuels and materials front. Next steps for BioProcess Algae include further feed trials, and more importantly, continuing to knock down the production cost. Their current costs, at the scale they are producing, are sure to be too high, but how fast they knock them down in their science of growth and engineering of a low-cost production system will be key. We expect that, if they had a path to parity with $80 oil already figured out, the public might well have heard about it.
For now, we stay tuned.
Friday, October 7, 2011
INDONESIA TRASHED RSPO!!!
Papua New Guinea is two-fold mighty in renewable resources: The first is the coffee in the highlands regions and the Palm oil in the coastal regions. The latter had a huge expansion lately, NBPO, Higaturu,Poliamba and Hargy are some big name oil palm industries in PNG moving rural development,services into the MOST RURAL lands, locations where government services can NEVER reach. More oil palm development is coming, lately PNG government invested 2 billion kina in the oil palm Sepik region, those wild savannah,unproductive idle sepik plans will be blooming with palm trees in the couple of months. Newswires had it that huge ares in the Famouse Markham valley had been surveyed, registered for mammoth palm oil fields.Finally, Patrict Putriach MP for Pomio is already setting out palm oil fields and milling. Putting all those together, a couple of years, all of these regions will be producing oil palm, some million tons yearly.
Our neighbour, Indonesia is the largest oil palm producer after Malaysia, possibly, PNG may fall between one of them, or after them. However, there was a very significant development that have surfaced in regard to RSPO-round sustainable palm oil, a volunatry organisation that monitors oil palm industry. The news below is latest, perhaps PNG can start thinking about...'whether or not' our home land industries-oil palm, can come under RSPO guide lines.
One has the freedom, capacity to decide and enforce,monitor and control. By the way, the news indicates there is conflicting ideas on RSPO.
SOURCE: http://www.guardian.co.uk/business/feedarticle/9876273
JAKARTA, Oct 3 (Reuters) - The Indonesian Palm Oil Association (Gapki) has withdrawn its membership from the Roundtable on Sustainable Palm Oil (RSPO), after the world's top producing country forged ahead with its own sustainability scheme, both groups said on Monday.
The RSPO is an industry body of consumers, green groups and plantation firms that aims to promote use of sustainable palm oil products and many major European palm oil buyers say the RSPO will continue to be the international sustainability benchmark.
Many palm oil producers have criticised the RSPO for being too much in favour of green groups, and both Malaysia and Indonesia are pushing on with their own schemes.
"We have been considering resigning from RSPO through a long process of discussion involving board of (our) directors and board of commissioner," Fadhil Hasan, executive director of Gapki told Reuters.
"Finally, we decided to resign from RSPO because we already have ISPO," he said. "We sent the letter of resignation on Thursday last week."
Unlike the RSPO, the Indonesia Sustainable Palm Oil (ISPO) will punish by law those found to be breaking ISPO rules, a ministry official said last November.
ISPO auditors will examine the entire operations of palm oil firms as part of its certification.
"We choose ISPO because it is mandatory and every palm oil producer has to follow ISPO," said Hasan. "The RSPO is voluntary."
Palm output in Indonesia, which overtook Malaysia as No. 1 palm oil producer in 2007, is expected to be 23 million tonnes and exports will be about 17 million tonnes this year, the Indonesian palm industry forecasts.
"It is regretful that an association representing Indonesian palm oil producers has decided to relinquish their presence in RSPO," the industry group said on its website. "However, we accept their decision as the RSPO is a voluntary membership based organisation."
The RSPO said its secretariat is working closely with Indonesian producer members to have an interim representative for Indonesian growers on the RSPO Executive Board until a new representative is formally chosen at the RSPO General Assembly in November.
CLIMATE CHANGE
The industry has come under increasing pressure to improve practices and halt deforestation blamed for speeding up climate change, ruining watersheds and destroying wildlife.
Sinar Mas Agro Resources and Technology (SMART), which runs the Indonesia palm oil operations of its Singapore-listed parent Golden Agri-Resources, was given a mixed score card last year in an independent environmental audit after Greenpeace accused the firm of clearing peat land and forests that sheltered endangered species.
The palm oil producer said in February, however, it would work with the government and a non-profit body, and Golden Agri then developed a Forest Conservation Policy (FCP) in collaboration with The Forest Trust (TFT), a non-profit organisation that seeks to promote green business methods.
Last month, Nestle, the world's biggest food group, resumed palm oil purchases from SMART, showing that the palm oil firm's efforts to boost its green credentials by teaming up with a conservation group have paid off.
Before this, an Indonesian moratorium on new permits to clear forests, came into force in May for an initial two years.
The RSPO has set up green standards for production, with volume of its certified sustainable palm oil on the market rising from 1.3 million tonnes in 2009 to 2.2 million in 2010.
RSPO-certified crude palm oil production capacity is about 5 million tonnes a year, or 10 percent of global output, the body's head said last month.
Our neighbour, Indonesia is the largest oil palm producer after Malaysia, possibly, PNG may fall between one of them, or after them. However, there was a very significant development that have surfaced in regard to RSPO-round sustainable palm oil, a volunatry organisation that monitors oil palm industry. The news below is latest, perhaps PNG can start thinking about...'whether or not' our home land industries-oil palm, can come under RSPO guide lines.
One has the freedom, capacity to decide and enforce,monitor and control. By the way, the news indicates there is conflicting ideas on RSPO.
SOURCE: http://www.guardian.co.uk/business/feedarticle/9876273
JAKARTA, Oct 3 (Reuters) - The Indonesian Palm Oil Association (Gapki) has withdrawn its membership from the Roundtable on Sustainable Palm Oil (RSPO), after the world's top producing country forged ahead with its own sustainability scheme, both groups said on Monday.
The RSPO is an industry body of consumers, green groups and plantation firms that aims to promote use of sustainable palm oil products and many major European palm oil buyers say the RSPO will continue to be the international sustainability benchmark.
Many palm oil producers have criticised the RSPO for being too much in favour of green groups, and both Malaysia and Indonesia are pushing on with their own schemes.
"We have been considering resigning from RSPO through a long process of discussion involving board of (our) directors and board of commissioner," Fadhil Hasan, executive director of Gapki told Reuters.
"Finally, we decided to resign from RSPO because we already have ISPO," he said. "We sent the letter of resignation on Thursday last week."
Unlike the RSPO, the Indonesia Sustainable Palm Oil (ISPO) will punish by law those found to be breaking ISPO rules, a ministry official said last November.
ISPO auditors will examine the entire operations of palm oil firms as part of its certification.
"We choose ISPO because it is mandatory and every palm oil producer has to follow ISPO," said Hasan. "The RSPO is voluntary."
Palm output in Indonesia, which overtook Malaysia as No. 1 palm oil producer in 2007, is expected to be 23 million tonnes and exports will be about 17 million tonnes this year, the Indonesian palm industry forecasts.
"It is regretful that an association representing Indonesian palm oil producers has decided to relinquish their presence in RSPO," the industry group said on its website. "However, we accept their decision as the RSPO is a voluntary membership based organisation."
The RSPO said its secretariat is working closely with Indonesian producer members to have an interim representative for Indonesian growers on the RSPO Executive Board until a new representative is formally chosen at the RSPO General Assembly in November.
CLIMATE CHANGE
The industry has come under increasing pressure to improve practices and halt deforestation blamed for speeding up climate change, ruining watersheds and destroying wildlife.
Sinar Mas Agro Resources and Technology (SMART), which runs the Indonesia palm oil operations of its Singapore-listed parent Golden Agri-Resources, was given a mixed score card last year in an independent environmental audit after Greenpeace accused the firm of clearing peat land and forests that sheltered endangered species.
The palm oil producer said in February, however, it would work with the government and a non-profit body, and Golden Agri then developed a Forest Conservation Policy (FCP) in collaboration with The Forest Trust (TFT), a non-profit organisation that seeks to promote green business methods.
Last month, Nestle, the world's biggest food group, resumed palm oil purchases from SMART, showing that the palm oil firm's efforts to boost its green credentials by teaming up with a conservation group have paid off.
Before this, an Indonesian moratorium on new permits to clear forests, came into force in May for an initial two years.
The RSPO has set up green standards for production, with volume of its certified sustainable palm oil on the market rising from 1.3 million tonnes in 2009 to 2.2 million in 2010.
RSPO-certified crude palm oil production capacity is about 5 million tonnes a year, or 10 percent of global output, the body's head said last month.
Wednesday, October 5, 2011
PNG, Jatropha (Biofuel) or pay more-Cheap days are Gone-period!
Below are latest possibly the begining from the people-PNG government has to wake up and realise that cheap fuel days are gone, reserves are scarce and expensive to be off shore.
Do biofuels or die!
Expert: Era of cheap oil over
Source:
The National - Thursday 06th October, 2011
THERE are enormous oil and gas resources available in the world today, but the challenge is to convert that into reserves that can last another century, International Society of Petroleum Engineers president Alain Labastie said yesterday at the University of PNG.
He said the era of cheap oil was now over and the cost of producing other new types of oil products would continue to increase, leading to oil prices increasing too.
Labastie was visiting the geology final year students for an inspirational talk on how the energy and petroleum industry looked globally.
He said at the moment, the production cost of making new oil products will require a lot of technology, capital and staff.
“With the rising cost of production, the oil prices will also continue to increase but will never fall below the US$70 a barrel mark, as this will mean an operational loss for oil companies.
“This is the long-term problem for all of us. Because when production stops, we will all stop as well and the economy will not grow.
“As for staff with the knowledge on how to do this, there was a good chance that in three to five years, companies would be bidding for qualified staff.
“It is already happening in Canada and parts of the world where skilled manpower is tendered,” he said.
Labastie encouraged the students to work hard in their field of study as the energy and petroleum industry was an important part in economic growth.
He said through the industry, new ways were being sought to address the carbon dioxide emissions caused by the industry and the end-users of energy products.
“This is an opportunity for more jobs to be created and for more people to be skilled in this work.
“Growth is fuelled by energy and when the economy is doing well, any financial crisis is disregarded by the world’s need for oil and that I am optimistic about,” he added.
ESP engineer backs jatropha plan
Source:
The National - Thursday 06th October, 2011
By ANCILLA WRAKUALE
A LOCAL chemical engineer is supporting the jatropha bio-fuel initiative because it has more value and other benefits.
Chemical engineer John Wafi from East Sepik said the jatropha bio-fuel project being advocated by another East Sepik engineer, Thompson Benguma, was a good project as it could reduce the cost of electricity in households and at the same time help alleviate poverty by generating income.
Wafi said the project could be adopted by the government as its rural electrification programme.
He said jatropha was miles ahead of palm oil, and appealed to policy makers to help introduce and develop the crop as a national industry.
He said jatropha, unlike palm oil, gave off nitrogen through its dried leaves, thus contributing to soil fertility.
Wafi said oil palm depleted soil nutrients.
He said a jatropha project was sustainable unlike fossil oil and gas.
Wafi said jatropha had many other by-products that included soap and washing detergent.
He said jatropha was also good for intercropping.
The government should support this project by providing the needed capital to develop it into a sustainable industry, Wafi said.
Do biofuels or die!
Expert: Era of cheap oil over
Source:
The National - Thursday 06th October, 2011
THERE are enormous oil and gas resources available in the world today, but the challenge is to convert that into reserves that can last another century, International Society of Petroleum Engineers president Alain Labastie said yesterday at the University of PNG.
He said the era of cheap oil was now over and the cost of producing other new types of oil products would continue to increase, leading to oil prices increasing too.
Labastie was visiting the geology final year students for an inspirational talk on how the energy and petroleum industry looked globally.
He said at the moment, the production cost of making new oil products will require a lot of technology, capital and staff.
“With the rising cost of production, the oil prices will also continue to increase but will never fall below the US$70 a barrel mark, as this will mean an operational loss for oil companies.
“This is the long-term problem for all of us. Because when production stops, we will all stop as well and the economy will not grow.
“As for staff with the knowledge on how to do this, there was a good chance that in three to five years, companies would be bidding for qualified staff.
“It is already happening in Canada and parts of the world where skilled manpower is tendered,” he said.
Labastie encouraged the students to work hard in their field of study as the energy and petroleum industry was an important part in economic growth.
He said through the industry, new ways were being sought to address the carbon dioxide emissions caused by the industry and the end-users of energy products.
“This is an opportunity for more jobs to be created and for more people to be skilled in this work.
“Growth is fuelled by energy and when the economy is doing well, any financial crisis is disregarded by the world’s need for oil and that I am optimistic about,” he added.
ESP engineer backs jatropha plan
Source:
The National - Thursday 06th October, 2011
By ANCILLA WRAKUALE
A LOCAL chemical engineer is supporting the jatropha bio-fuel initiative because it has more value and other benefits.
Chemical engineer John Wafi from East Sepik said the jatropha bio-fuel project being advocated by another East Sepik engineer, Thompson Benguma, was a good project as it could reduce the cost of electricity in households and at the same time help alleviate poverty by generating income.
Wafi said the project could be adopted by the government as its rural electrification programme.
He said jatropha was miles ahead of palm oil, and appealed to policy makers to help introduce and develop the crop as a national industry.
He said jatropha, unlike palm oil, gave off nitrogen through its dried leaves, thus contributing to soil fertility.
Wafi said oil palm depleted soil nutrients.
He said a jatropha project was sustainable unlike fossil oil and gas.
Wafi said jatropha had many other by-products that included soap and washing detergent.
He said jatropha was also good for intercropping.
The government should support this project by providing the needed capital to develop it into a sustainable industry, Wafi said.
Thursday, September 29, 2011
Australias backyard teaming on Algae Biotechnology-Algae Biofuels!
Companies, operating in Outback Australia, personify promise and hardiness in the microalgae corner of industrial biotech
The birth, life and death of a global micro-algae industry has been written so many times that it must seem to many readers like a microscopic version of Buddhist reincarnation, the lifecycle of the phoenix, or out-takes from the motion picture Groundhog Day.
It has all the elements of classic literature. Promising strains plucked from obscurity by sometimes mysterious benefactors, like the stories of Oliver Twist or Pip; tales of prodigal powers of growth, presumed fortune and mis-spent youth, out of the chronicles of young Prince Hal and Falstaff; and lost opportunity and regret straight out of Sentimental Education.
Gumption and Darwinian times
But out of all literature, it is the qualities that Margaret Mitchell essayed in Gone With the Wind that most closely apply to the entrepreneurs, renowned investors, gold-diggers, celebrated scientists, quacks, loyal supporters and camp followers who have tackled the development of micro-algae, plankton and cyanobacteria as an alternative to fossil oil and gas. We live not in Dickensian times, but in Darwinian days.
“What qualities are in those who fight their way through triumphantly that are lacking in those who go under?” Mitchell wrote. “I only know that the survivors used to call that quality ‘gumption.’ So I wrote about the people who had gumption and the people who didn’t.”
Of the approximately one zillion people, companies, science-based organizations, governments, or lunatics out for an airing that have taken up the development of micro-algae, the survivors share one thing in common with the microcellular strains they have found or enhanced – and that is a remarkable level of gumption indeed. They live in Darwinian conditions indeed.
Three ventures, with operations located in Australia, personify those qualities of gumption as well as any three in the world: MBD Energy, Muradel and Aurora Algae.
For sure, there are numerous other ventures utilizing micro-algae as a platform technology or as the end product – Martek, Aquatic Energy, Solazyme, Aquaflow Bionomic, Phycal, Cellana, Sapphire Energy, Solazyme, Solix, and AlgaeTec just to name an impressive few out of the many that have been profiled over the years in Biofuels Digest. Not to mention an array of research institutions and consortia working on DOE, DARPA or other governmental and private research projects.
Out in the Never-Never
But there’s something so highly appealing about these three companies, operating in the “Never-Never” of outback Australia. They have as hardy a tale of survival in the wilderness as the celebrated novel We of the Never-Never, that in 1908 first popularized the “survival against the odds” genre of outback Australia tale-telling.
Where are they? MBD, developing in South-Eastern Queensland in the shadow of the coal-fired Tarong Power Station about 200 kilometers northwest of Brisbane; and two, Muradel and Aurora, along the forbidding northwest Australian coastline at Karratha, in Western Australia.
Australia’s prized economic success stories, its massive coal and iron mining industries, are the source of the CO2 for all three ventures, though Aurora Algae and Muradel are working with open-pond systems, while MBD is working with carbon capture strategy to grab CO2 from power station flue gas. Flat, open land and plenty of sunshine – well, Australia is long-renowned for having plenty of both.
The water? In the case of the closed systems of MBD, the water source is less critical in nature, but in any case Queensland is the wettest state in the country, and as well known for its floods as other parts of the country are known for searing drought. In the case of Muradel and Aurora Algae, they are focused on saline algae, and have the (essentially unlimited) source of the Indian Ocean near to hand.
Muradel
Muradel is remarkable, in a world fitfully awash in cash-laden algal research operations, for having constructed their first micro-pilot on a budget of $2,000, cobbled together out of the resources of the University of Adelaide and Mudroch University (hence, “Muradel”). $3.3 million in funding subsequently arrived for a full-scale pilot, which was constructed up in Karratha, and Muradel Pty Ltd was incorporated in December 2010 as a joint venture between Murdoch University, Adelaide Research, Innovation Pty Ltd and SQC. The company is now going through the process of raising cash for a demonstration of its technology.
“We have achieved production rates of 50 tonnes per hectare per year,” Project Leader Professor Michael Borowitzka from Murdoch University told the Adelaidean last year, “over half of which is converted to oil. These high production rates are expected to increase at the new pilot plant due to the even better climatic conditions in Karratha.” Head engineer David Lewis, of the University of Adelaide, confirmed at the Alternative Fuels Summit that the project’s pilot is fully operational and meeting project goals. Last year, Muradel indicated that it had brought biofuels production costs to under $4 per kilo.
Aurora Algae
Aurora Algae recently completed the raising of another $22 million, bringing its total fund raise to $72 million so far. The company has moved away from being a biofuels pure play to focusing on nutraceuticals. The newest funding round will go towards the building of its first commercial scale plant in Australia.
Aurora Algae announced that it has awarded the initial engineering contract for design and construction for the Company’s commercial facility in Maitland, Western Australia.
Recently, the company announced an option agreement on over 1,500 acres of land located near its demonstration facility in Karratha. With the award of the initial engineering contract, Aurora Algae is one step closer to constructing a full-scale commercial facility equipped to manufacture thousands of tonnes of algae-based biomass annually.
The Aurora process is expected to produce 15 tonnes of biomass per month in the demonstration plant from 6 one-acre ponds, suggesting that volumes could increase to 37,500 tonnes of algal biomass per month at a maxed-out commercial facility. At 25 percent oil content, that could provide up to 33 million gallons of algal oil in addition protein and feed biomass. By contrast, 15,000 acres of soybeans would generally provide less than 1 million gallons of vegetable oil.
MBD Energy
Last year, the Queensland state government announced a $1 million investment for a trial which uses algae to soak up carbon emissions from a coal fire power station. Premier Anna Bligh said Tarong Power Station near Kingaroy will be the first coal-fired power station in Australia to try the technology as part of the $5 million MBD Energy Limited Tarong trial.
Ms Bligh said that as part of the trial MBD Energy would start construction on a one hectare algal biomass display plant beside Tarong Power Station, 180km north-west of Brisbane, in December.
Premier Bligh said MBD Energy had also agreed to build facilities next to power stations in Victoria (Loy Yang A) and New South Wales (Eraring Energy), with construction underway first at Tarong.
The Tarong Power Station test plant, once fully built, is expected to capture about 700 tonnes per annum of CO2, produce one tonne of algal biomass per day, 120 tonnes per annum of algal oil and 240 tonnes per annum of algal meal by 2012. Ultimately, MBD expects to expand the facility to 80 hectares by 2013, producing 3 Mgy of algal based fuel and up to 25,000 tons of algal meal.
The closely-watched algal technology developer OriginOil is a strategic partner and supplier to the MBD Project. OriginOil announced in January that it received its first commercial order to deploy its algae oil extraction system in an industrial setting. MBD Energy (MBD) recently committed to purchase an initial OriginOil extraction unit for piloting at one of Australia’s three largest coal-fired power plants. MBD Energy expects OriginOil technology to support a pilot Bio-CCS (Bio-based Carbon Capture and Storage) algal synthesizer system at Queensland’s Tarong Power Station.
Separation technologies, bioreactors and more: special microalgae features
Investing in Innovation, and betting against it
The progress of these three companies, out in the Never-Never, not to mention the persistent innovation n the space represented by the technical artucles we are publishing today, brings us to the “never, never”so often uttered by investors, declining participation in the latest algal project submissions from developers around the world.
Is “No” a safe answer? Isn’t “No” a bet on the future of technology, just as much as check invested in a venture is a bet. – only is is a bet against algae as a fuels, chemicals, feed, nutraceuticals or food platform.
It is a bet against gumption itself and, as we have seen in the case of Solazyme (where the Seties B investors – the $8 million round that is not unlike Muradel’s needs, in scope, bought in for $1.01 per share, for a stock selling for $14 today), there is a lot more non-buyers remorse going around than buyer’s remorse.
The birth, life and death of a global micro-algae industry has been written so many times that it must seem to many readers like a microscopic version of Buddhist reincarnation, the lifecycle of the phoenix, or out-takes from the motion picture Groundhog Day.
It has all the elements of classic literature. Promising strains plucked from obscurity by sometimes mysterious benefactors, like the stories of Oliver Twist or Pip; tales of prodigal powers of growth, presumed fortune and mis-spent youth, out of the chronicles of young Prince Hal and Falstaff; and lost opportunity and regret straight out of Sentimental Education.
Gumption and Darwinian times
But out of all literature, it is the qualities that Margaret Mitchell essayed in Gone With the Wind that most closely apply to the entrepreneurs, renowned investors, gold-diggers, celebrated scientists, quacks, loyal supporters and camp followers who have tackled the development of micro-algae, plankton and cyanobacteria as an alternative to fossil oil and gas. We live not in Dickensian times, but in Darwinian days.
“What qualities are in those who fight their way through triumphantly that are lacking in those who go under?” Mitchell wrote. “I only know that the survivors used to call that quality ‘gumption.’ So I wrote about the people who had gumption and the people who didn’t.”
Of the approximately one zillion people, companies, science-based organizations, governments, or lunatics out for an airing that have taken up the development of micro-algae, the survivors share one thing in common with the microcellular strains they have found or enhanced – and that is a remarkable level of gumption indeed. They live in Darwinian conditions indeed.
Three ventures, with operations located in Australia, personify those qualities of gumption as well as any three in the world: MBD Energy, Muradel and Aurora Algae.
For sure, there are numerous other ventures utilizing micro-algae as a platform technology or as the end product – Martek, Aquatic Energy, Solazyme, Aquaflow Bionomic, Phycal, Cellana, Sapphire Energy, Solazyme, Solix, and AlgaeTec just to name an impressive few out of the many that have been profiled over the years in Biofuels Digest. Not to mention an array of research institutions and consortia working on DOE, DARPA or other governmental and private research projects.
Out in the Never-Never
But there’s something so highly appealing about these three companies, operating in the “Never-Never” of outback Australia. They have as hardy a tale of survival in the wilderness as the celebrated novel We of the Never-Never, that in 1908 first popularized the “survival against the odds” genre of outback Australia tale-telling.
Where are they? MBD, developing in South-Eastern Queensland in the shadow of the coal-fired Tarong Power Station about 200 kilometers northwest of Brisbane; and two, Muradel and Aurora, along the forbidding northwest Australian coastline at Karratha, in Western Australia.
Australia’s prized economic success stories, its massive coal and iron mining industries, are the source of the CO2 for all three ventures, though Aurora Algae and Muradel are working with open-pond systems, while MBD is working with carbon capture strategy to grab CO2 from power station flue gas. Flat, open land and plenty of sunshine – well, Australia is long-renowned for having plenty of both.
The water? In the case of the closed systems of MBD, the water source is less critical in nature, but in any case Queensland is the wettest state in the country, and as well known for its floods as other parts of the country are known for searing drought. In the case of Muradel and Aurora Algae, they are focused on saline algae, and have the (essentially unlimited) source of the Indian Ocean near to hand.
Muradel
Muradel is remarkable, in a world fitfully awash in cash-laden algal research operations, for having constructed their first micro-pilot on a budget of $2,000, cobbled together out of the resources of the University of Adelaide and Mudroch University (hence, “Muradel”). $3.3 million in funding subsequently arrived for a full-scale pilot, which was constructed up in Karratha, and Muradel Pty Ltd was incorporated in December 2010 as a joint venture between Murdoch University, Adelaide Research, Innovation Pty Ltd and SQC. The company is now going through the process of raising cash for a demonstration of its technology.
“We have achieved production rates of 50 tonnes per hectare per year,” Project Leader Professor Michael Borowitzka from Murdoch University told the Adelaidean last year, “over half of which is converted to oil. These high production rates are expected to increase at the new pilot plant due to the even better climatic conditions in Karratha.” Head engineer David Lewis, of the University of Adelaide, confirmed at the Alternative Fuels Summit that the project’s pilot is fully operational and meeting project goals. Last year, Muradel indicated that it had brought biofuels production costs to under $4 per kilo.
Aurora Algae
Aurora Algae recently completed the raising of another $22 million, bringing its total fund raise to $72 million so far. The company has moved away from being a biofuels pure play to focusing on nutraceuticals. The newest funding round will go towards the building of its first commercial scale plant in Australia.
Aurora Algae announced that it has awarded the initial engineering contract for design and construction for the Company’s commercial facility in Maitland, Western Australia.
Recently, the company announced an option agreement on over 1,500 acres of land located near its demonstration facility in Karratha. With the award of the initial engineering contract, Aurora Algae is one step closer to constructing a full-scale commercial facility equipped to manufacture thousands of tonnes of algae-based biomass annually.
The Aurora process is expected to produce 15 tonnes of biomass per month in the demonstration plant from 6 one-acre ponds, suggesting that volumes could increase to 37,500 tonnes of algal biomass per month at a maxed-out commercial facility. At 25 percent oil content, that could provide up to 33 million gallons of algal oil in addition protein and feed biomass. By contrast, 15,000 acres of soybeans would generally provide less than 1 million gallons of vegetable oil.
MBD Energy
Last year, the Queensland state government announced a $1 million investment for a trial which uses algae to soak up carbon emissions from a coal fire power station. Premier Anna Bligh said Tarong Power Station near Kingaroy will be the first coal-fired power station in Australia to try the technology as part of the $5 million MBD Energy Limited Tarong trial.
Ms Bligh said that as part of the trial MBD Energy would start construction on a one hectare algal biomass display plant beside Tarong Power Station, 180km north-west of Brisbane, in December.
Premier Bligh said MBD Energy had also agreed to build facilities next to power stations in Victoria (Loy Yang A) and New South Wales (Eraring Energy), with construction underway first at Tarong.
The Tarong Power Station test plant, once fully built, is expected to capture about 700 tonnes per annum of CO2, produce one tonne of algal biomass per day, 120 tonnes per annum of algal oil and 240 tonnes per annum of algal meal by 2012. Ultimately, MBD expects to expand the facility to 80 hectares by 2013, producing 3 Mgy of algal based fuel and up to 25,000 tons of algal meal.
The closely-watched algal technology developer OriginOil is a strategic partner and supplier to the MBD Project. OriginOil announced in January that it received its first commercial order to deploy its algae oil extraction system in an industrial setting. MBD Energy (MBD) recently committed to purchase an initial OriginOil extraction unit for piloting at one of Australia’s three largest coal-fired power plants. MBD Energy expects OriginOil technology to support a pilot Bio-CCS (Bio-based Carbon Capture and Storage) algal synthesizer system at Queensland’s Tarong Power Station.
Separation technologies, bioreactors and more: special microalgae features
Investing in Innovation, and betting against it
The progress of these three companies, out in the Never-Never, not to mention the persistent innovation n the space represented by the technical artucles we are publishing today, brings us to the “never, never”so often uttered by investors, declining participation in the latest algal project submissions from developers around the world.
Is “No” a safe answer? Isn’t “No” a bet on the future of technology, just as much as check invested in a venture is a bet. – only is is a bet against algae as a fuels, chemicals, feed, nutraceuticals or food platform.
It is a bet against gumption itself and, as we have seen in the case of Solazyme (where the Seties B investors – the $8 million round that is not unlike Muradel’s needs, in scope, bought in for $1.01 per share, for a stock selling for $14 today), there is a lot more non-buyers remorse going around than buyer’s remorse.
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