The Promise of Algae Fuel Rests on Big Oil | earth2tech.com

By Katie Fehrenbacher Posted September 4th, 2009 at 12:00 am in Biofuels

In the world of big oil balance sheets, Exxon’s decision to invest $600 million into an algae fuel deal with startup Synthetic Genomics is kind of like oil finally agreeing to take algae out on a date. While it’s definitely a first step in a relationship, who knows how long they’ll be dating or if they’ll ever get married? When it comes down to making algae fuel cheap enough to produce at a scale on par with petroleum, however, it’s becoming increasingly clear that big oil will play a fundamental role.

During a recent trip to the lab of algae fuel firm Solazyme — one of the leaders in the space, founded in 2003, with almost $80 million in venture capital backing — the startup’s CEO Jonathan Wolfson told us “We will likely commercialize our technology with a big oil partner.” Wolfson added “it’s delusional to think that companies with that amount of scale and trillions of dollars of infrastructure won’t play a key role.”

Solazyme already has a development deal with oil giant Chevron,(s CVX) announced back in January 2008, which likely helped pave the way for the newer deals between Exxon and Synthetic Genomics, as well as BP and algae developer Martek. Wolfson says that he expects Solazyme to be able to commercialize its technology in the 2012-2013 time frame, with a production cost target at $60 to $80 per barrel. The company is looking outside the U.S. — including sites in South America — for its first commercial plant.

At this point, Wolfson says the company can’t yet produce algae fuel at a low enough price to bring it to commercial and petroleum fuel scale — an admission I found pretty refreshing considering a lot of the algae fuel hype in the industry. But Solazyme is darn close to those metrics, says Wolfson. Currently the company is already producing thousands of gallons of algae fuel in pilot phases (see photo) and is in the process of commercializing algae-based goods like cosmetics, soaps and foods.

But of course the key hurdle to scaling up to commercial phase is the sheer cost of building a commercial-scale plant — “over $100 million,” says Wolfson. And given the economic climate over the past year, it’s been very difficult to raise project financing for such risky and expensive projects. That’s one obvious way for an oil company to get involved: put up the commercialization capital. Another way oil companies can aid algae fuel developers is lending their existing infrastructure. Solazyme makes a renewable diesel product that can be used in diesel distribution and pumps, so clearly piggybacking on big oil is a lot less capital intensive way to deliver fuel than building those networks on its own.

Something’s gotta give — despite what all the media attention, eager startups and investors in the algae fuel industry would lead you to believe, there are no companies I’ve heard of that are producing and selling algae fuel at a commercial scale yet. Robert Rapier suggests as much in a piece called Renewable Fuel Pretenders this week, which is similar in theme to my idea of biofuel makers as “chronoptimists,” or someone who constantly underestimates the time it takes to complete a task (chronologically optimistic.)

The devil is in the details for producing algae fuel economically at a commercial scale, and at this point the details are screaming that it’s just way too expensive right now to produce at a similar scale to the petroleum fuel industry’s millions of barrels. If algae fuel is ever going to get to that scale, it’s looking like that big oil will lead the way.

via The Promise of Algae Fuel Rests on Big Oil.

$15-Million Marine Energy Prize Launched in Scotland | National Geographic

$15-Million Marine Energy Prize Launched in Scotland

James Owen in London for National Geographic News

December 2, 2008

The race is officially on for a U.S. $15-million-dollar (10-million-Euro) prize for harnessing the power of the oceans.

The winning marine renewable-energy innovation would provide a serious energy alternative to burning fossil fuels, which contribute to global warming.

Details of the Saltire Prize Challenge were announced Tuesday in Edinburgh by Scotland’s First Minister, Alex Salmond.

The award will go to the team that “successfully demonstrates—in Scottish waters—the best commercially viable wave or tidal technology capable of providing electricity to thousands of homes.”

The winning team must supply this electricity using only the power of the sea for a continuous two-year period.

“It is Scotland’s energy challenge to the world—a challenge to the brightest and best minds worldwide to unleash their talents and push the frontiers of innovation in green marine energy,” Salmond said.

“The Saltire Prize has the potential to unlock Scotland’s vast marine energy wealth, putting our nation at the very forefront of the battle against climate change.”

The prize, named after the cross of St. Andrew on the Scottish national flag, was inspired by other innovation competitions such as the U.S. $10-million-dollar Ansari X Prize.

That contest led to the first private spacecraft launch in 2004.

“Saudi Arabia of Marine Energy”

Scotland boasts a quarter of Europe’s tidal power potential, according to Salmond.

He described the Pentland Firth, a region between Scotland’s north coast and the Orkney Islands, as the “Saudi Arabia of renewable marine energy.”

Scotland aims to meet 50 percent of its electricity demand from renewable resources by 2020.

There’s also huge potential for ocean energy globally, said prize committee member Terry Garcia, executive vice president for mission programs for the National Geographic Society. (National Geographic News is owned by the National Geographic Society.)

“It’s not going to be the sole solution to our energy needs,” Garcia said, but “this will be one of the important pieces of the puzzle.”

The main purpose of the competition is to act as a catalyst for innovation, Garcia added.

“It’s both about making marine energy economically viable and being able to produce it in a sustained way on a large scale,” he said.

Wave and Tidal Power

The two major types of marine power are wave and tidal power.

Wave power technology involves floating modules with internal generators, which produce electricity as they twist about on the sea surface.

Tidal power harnesses tidal currents with arrays of underwater turbines similar to those that propel wind farms.

Tidal ranks among the most reliable renewable energies because tides are highly predictable, said AbuBakr Bahaj, head of the University of Southampton’s Sustainable Energy Research Group in the U.K.

“But wave energy is driven by wind, which is notoriously difficult to predict,” he said.

Even so, wave power may have the higher electricity-generating potential.

In Britain, for instance, it’s estimated that wave power could potentially provide 20 percent of the country’s total electricity supply, against 5 to 10 percent for tidal power, Bahaj said.

The scientist says the main technical challenge is to create reliable power installations that can operate in difficult marine environments for five to ten years without maintenance.

“You also need to have multiple devices working together at each site,” he said

via $15-Million Marine Energy Prize Launched in Scotland.

Renewables role for oil industry ¦ BBC news, Wednesday, 29 October 2008

By Steven McKenzie
Highlands and Islands reporter, BBC Scotland news website

http://news.bbc.co.uk/1/hi/scotland/highlands_and_islands/7689213.stm

The oil and gas industry has experience of working in harsh environments
The oil and gas industry is to be encouraged to play a bigger role in the development of marine power.
Scottish Renewables said the industry had the skills needed to help Scotland achieve the generation of a gigawatt of electricity – enough for 570,000 homes.

While not opposed to marine energy, conservationists called for the careful selection of sites and more research into the potential impact on wildlife.

Their concerns include the effect of noise pollution from tidal devices.

Scottish Renewables, the green energy trade body, will host a one-day conference on marine power in Aberdeen on 6 November. IN THE PLANNING PROCESS
Decisions are due from Scottish ministers on 34 renewable projects.
Major schemes up for consideration include Pairc Wind Farm on the Western Isles and Earlshaugh Wind Farm in the Borders.
Nine hydro projects are also among the 35 – including Allt Hallater Hydro in Argyll and Bute and Invervar Hydro in Perth and Kinross.
One wave power development is involved, Siadar Wave Energy on the Western Isles.

Supported by the Aberdeen Renewable Energy Group, the event will look at how Scotland can generate a gigawatt of energy by 2020 and an increased input from the fossil fuels sector.

The conference comes just weeks after the Crown Estate opened up the Pentland Firth between the north mainland coast and Orkney for development.

Scottish Renewables estimate a gigawatt – which is 1,000 megawatts – would prevent the emission of about 1.5m tonnes of CO2 a year, or 450,000 tonnes of carbon.

Scotland emits about 54m tonnes of CO2 each year.

Jason Ormiston, chief executive of Scottish Renewables, said Aberdeen – the oil capital of Europe – was deliberately picked as the conference venue.

He said: “We hope to get a lot of interest from the oil and gas sector.

“We want to raise the profile of the renewables industry and show it is going places. The oil and gas sector has the skills for developing wave and tidal power.

“It works in a similar environment off Shetland, Orkney and the Western Isles. The sector understands what the challenges are and they are significant.”

‘Huge opportunites’

Morag McCorkindale, chief operating officer at Aberdeen Renewable Energy Group, said many Aberdeen-based oil and gas companies were already actively involved in green power projects across Europe.

She said in coming years billions of pounds would be invested in the development of offshore wind farms, while huge opportunities would emerge in the wave and tidal sector.

Friends of the Earth Scotland said it was “very enthusiastic” about the marine power potential of Scotland.

Chief executive Duncan McLaren said as with onshore renewable projects, marine schemes could not be established “everywhere and anywhere”. THE POWER OF SCOTLAND

Wind is the biggest generator of renewable power in Scotland – with 66 onshore projects and 875 turbines able to operate to a capacity of 1,384.68 megawatts (MW).

The grandfather of green power, hydro, currently can work to a capacity of 1,382.15 MW from 145 schemes. Glendoe near Fort Augustus is due to come on line next year.

There are 39 energy-from-waste projects capable of generating 99.68 MW, while 70 operating biomass schemes can produce up to 78.92 MW of electricity and 29.41 MW of thermal energy.

Two operating wave projects can produce to a capacity of 0.50 MW and one tidal scheme. The figures do not include the testing capacity at the European Marine Energy Centre on Orkney.
Source:Scottish Renewables

He said: “We would encourage a strategic approach which recognised that some part of our seas are particularly valuable for fisheries and marine biodiversity.” Mr McLaren added that some sites could become “nurseries” for fish, which would help replenish stocks and protect threatened species.

Sarah Dolman, of the Whale and Dolphin Conservation Society, was also not against the development of marine renewables.

But she said Scotland needed to conduct a strategic environmental assessment (SEA) of areas of the sea and coast not covered by a UK Government-led SEA.

She said this would help to identify the needs of oil and gas, renewables, shipping and fishing and consider any threats to habitats.

Ms Dolman added that further research of the potential impacts of tidal devices on mammals would be required.

Harbour porpoise and seals were the most likely to be affected by equipment set up in shallow waters.

Ms Dolman said: “We have to be very aware of where to put these devices to make sure they don’t change habitats and affect marine life through noise pollution.

“There is also the potential of collisions because the waters involved are fast flowing, visibility is poor in these waters and it is already quite a noisy environment.”

The Pentland Firth provides habitat for harbour porpoise, dolphins and killer whales.

Mr Ormiston said environmental factors would be considered in the development of marine energy.

He said: “There will be environmental constraints and they will be taken very seriously. The developer will have to prove to the authorities that their project is acceptable.”

Vital questions

Mr Ormiston added that a clear planning system, which was not complicated and inconsistent, and allowed projects to develop quickly was needed.

Meanwhile, an upgrading the electricity power line from Beauly, near Inverness, to Denny in central Scotland is a “keystone” to the future of renewable power in the country, the chief executive said.

The line – which would involve the construction of 600 pylons – would allow renewable energy from proposed wind and wave projects in the north to be transmitted to the major population centres of central Scotland.

But the proposal has been hugely controversial.

Campaigners claim the public inquiry into the plan did not address vital questions – such as whether a sub-sea cable would be a better alternative than the erection of 212ft pylons.

The Beauly/Denny landscape group, which includes the John Muir Trust and the Ramblers’ Association, was unhappy that alternatives were not properly examined.

Mr Ormiston said the line was needed for building capacity and delivering surplus energy to the rest of the UK and Europe.

He said: “It is a keystone for the renewables industry because whilst there is a lot of development in the south of Scotland a lot of the significant is in the north of Scotland.”

Scottish ministers are expected to make an announcement on the line next spring.

UN says investment in in clean technologies and natural resources will rebuild world economy | Environment | guardian.co.uk

UN: Rebuild global economy through green investmentTerry Macalister guardian.co.uk, Wednesday October 22 2008 13.00 BST Article historyThe United Nations today called for a refocusing of the world's economy towards investments in clean technologies and natural infrastructures such as forests in a Green New Deal that could revive the stumbling global economy, combat climate change, and cut poverty.

The UN's Environment Programme (UNEP) said the financial, fuel and food crises of 2008 highlighted the need for an innovative approach similar to the state-funded scheme used by US president Franklin D Roosevelt, in response to the Great Depression.

The organisation, supported by governments and top economists, is calling for – and believes it will achieve – decisive government action when finance ministers meet for the Financing for Development-Doha Review conference next month in New York.

"Transformative ideas need to be discussed and transformative decisions taken," said Achim Steiner, the US undersecretary general and UNEP executive director.

"The alternative is more boom and bust cycles; a climate-stressed world and a collapse of fish stocks and fertile soils up to forest ecosystems," he added.

It was only a matter of time before investments would begin pouring back into the global ec

via UN says investment in in clean technologies and natural resources will rebuild world economy | Environment | guardian.co.uk