Algae Biofuel Sustainable Markets: Stocks to Benefit

ExxonMobil (XOM) has partnered with biotech company Synthetic Genomics Inc. (SGI) to research and develop next generation biofuels from photosynthetic algae.

ExxonMobil Research and Engineering Company has entered into a research and development alliance with SGI, a privately held company focused on developing genomic-driven solutions and founded by genome pioneer, Dr. J. Craig Venter, to develop advanced biofuels from photosynthetic algae that are compatible with today’s gasoline and diesel fuels. The initiative would require ExxonMobil to spend more than $600 million, including $300 million in internal costs and potentially more than $300 million to SGI.

Thus far the oil supermajor has invested more than $1.5 billion over the past five years on activities that improve energy efficiency and reduce greenhouse gas emissions including technologies to improve automobile efficiency like tire liners, advanced fuel-economy engine oil, light-weight automobile plastics, and an improved lithium battery separator film for hybrid electric cars.

The algae sector is getting more attention recently as a top contender to what is now commonly referred to as a ‘third-generation’ biofuel. The reasoning could lie in the fact that previously, very little information was provided on algae used as a biofuel feedstock. As research increases, so does the level of interest and investment.

Several large energy companies like Boeing (BA), Shell (RBS.A) , ConocoPhillips (COP) , BP PLC (BP) and Chevron (CVX) are also investing in algae biofuels including alternative jet fuels.

There are now three publicly traded "Algae Biofuel" companies. PetroSun (PSUD.PK) and more recently OriginOil (OOIL.OB) and PetroAlgae, (PALG.OB) have also gone public. PetroAlgae is also the industry high flyer, and is doing some interesting work growing duckweed.

Additionally, the U.S. DARPA has provided $35 million to San Diego-based companies SAIC (SAI) and General Atomics to pursue the creation of algae-based jet fuel. You might also find interesting updates in my recent article; "Sustainable Bio-Fuel Aviation Performs Well".

We have seen the implementation of a new technology, BioGauge™, developed by International Energy, Inc. The technology is able to quickly determine the accumulation of bio-oil and other valuable compounds in microalgae, which is predicted to catapult the importance of algae in the biofuels commercial sector.

US-based bioenergy company OriginOil announced in May that it developed an extraction method to help transform algae into a competitive transport fuel. The company plans to commercialize the patent-pending solution for use by others in the algae industry.

In addition, cities are even jumping on board to utilize algae in order to meet energy demands. Electricity sources in Venice, Italy will be diversified by using algae in order to produce 50% of the city’s electricity needs. The city – famous for its canals – will turn its algae problem into a solution by utilizing the third generation biofuel by producing electricity from two types of algae that can be found regularly growing over the seaport and clinging to ships.

Other developments include U.S. retailers such as grocery-store chain; The Kroger Co. (KR), discount retailers Wal-Mart Stores Inc. (WMT) and warehouse store BJ’s Wholesale Club Inc. (BJ) are increasingly selling blended discount gas to draw customer traffic and boost sales in other departments.

Keep an eye on India's manufacturing of Jatropha blended biofuels; the wonder plant produces seeds with an oil content of 37%. The oil can be combusted as fuel without being refined. It burns with clear smoke-free flame, tested successfully as fuel for simple diesel engine. The by-products are press cake a good organic fertilizer, oil contains also insecticide.

Few advantages of Jatropha are:

• Jatropha is adapted to a wide range of climates and soils.
• It can grow almost on any type of soil whether gravelly, sandy or saline and thrives even on the poorest stony soils and rock crevices.
• It is a drought resistant perennial living up to 50 years.

It is significant to point out that, the non-edible vegetable oil of Jatropha curcas has the requisite potential of providing a promising and commercially viable alternative to diesel oil since it has desirable physicochemical and performance characteristics comparable to diesel. Cars can be run with Jatropha curcas without requiring much change in design.

Disclosure: The author holds diverse interests in niche sustainable sectors.

Comments

[long_on_oil:]

Give us a table that compares the cost per gallon. This type article is interesting but if it cost $15 a gallon to produce these biofuels then they are just a pipe dream.

Jul 19 08:41 AM

[CKWR:]

Subject: UPDATE 2-D1 Oils to buy BP's stake in jatropha JV - Un-fortunately the processes of corrupt malpractice continue to take a lead role. [Incident:090717-000049]

A proposal to provide plant science and planting technology and services over a five year period has been agreed in principle by Bedford Biofuels and D1 Oils. Under the terms of the proposed agreement, unveiled today (17th July), D1 would license on a non-exclusive basis technology acquired through D1’s agronomy research and breeding programme to Bedford Biofuels. The agreement once entered into would also offer a framework for the sale of technology consulting services and Jatropha planting seed and seedlings. Intellectual property rights would remain in D1 ownership.

CKWR says:

Excellent !!! We have clients on every country and continent. The ministers of Agriculture, Land, Development Policy, Water, Finance, Energy of every country in the subtropics where approval for the cultivation of Jatropha Curcas Linn has been established would facilitate the promotion and ultimate acceptance of this opportunity to deliver comprehensive successful commercialization of Jatropha Curcas Linn. With literally millions of Ha's of degraded, marginal, rain fed land locations to promote for economic utility.

Centers of Excellence for the development of Agricultural Extension of oil seed crops on marginal, degraded rain fed lands across the sub tropics and management of the value chains all the way to finished high value export and home use commodities.

The Trade Development Network of the UK Government would, no doubt, be delighted, (As in the past. NB The Thai administration and DTi paid for the work in Thailand in 2005 following a direct request from CKWR in August/September 2004 to promote the interests of D1 Oils Plc across its broad spectrum of national government FDI and LDI networks.

Such an opportunity to deliver first class "British" technology would not be sneezed at and the related CHP, Pyrolysis, Crushing, extraction/extrusion, bio plastics etc etc would lead to exceptional export opportunity for a good number of UK/EU companies. Rather a shame that D1 stopped its building of decentralised refinery products.

We should see D1's popularity on the UK AIM surge back to the +£5.00/share before the end of July. :-)


Commenting on the agreement, Ben Good, Chief Executive Officer of D1 Oils, said: "Generating revenue through the sale of plant science and planting technology and services to the growing number of new Jatropha projects worldwide is a key element of our strategy as we restructure the D1 business by merging our plant science and planting operations.

CKWR says:
Brilliant!!! As the long term deliver of research, practical solutions and a business model for doing this KBC seeks to partner with D1 Oils Plc in order to facilitate correct land assessment, land allocation, primary and advanced plant species training, promotion of region specific as well as international research, the strategic agricultural extension of Jatropha Curcas Linn, manage the plant calendar, health, harvest performance, harvest the yields and establish the purchase, processing and products to market technologies that deliver least cost solutions for advanced liquid fuels, decentralised energy solutions at strategic locations in the sub tropical regions and a good range of value added products from primary manufacture; throughout the subtropical regions.

D1 says:
We are seeing increasing interest from third parties in paying for access to our technology and knowhow in plant breeding, agronomy research and meal processing for Jatropha. We are very pleased with this initiative with Bedford Biofuels and we anticipate further development of this area of our business as the Jatropha industry matures and commercial planting operations expand."

CKWR say's:

Yes we need this plant breeding, agronomy and processing out in the field ASAP. KBC has a client base that extends throughout the subtropical regions and the ability to reach out through associations globally in the shortest space of time. In fact this communication could move around the global Jatropha Curcas industry executive immediately. You could have feedback by the board room meeting of the 26th of July and a full book of eager clients ( Governments, Commercial operations and Individuals) willing to sign up by the month end. :-)

D1 says:

The contract in its final form has been agreed in principle, but will not be executed or have legal effect until the sale of BP International’s shares in D1-BP Fuel Crops Limited has been completed in accordance with the sale and purchase agreement announced earlier today. The BP sale will take place only following the passing of relevant resolutions at a D1 shareholders' meeting. Resolutions for this purpose are proposed at D1's forthcoming Annual General Meeting on 23 July 2009.

CKWR says:

Perhaps BP are being premature. They do have an international network and relationship profile second to non around the world and exceptional access to development funding resources. They would be seen as the type of company able to process advance fuels and make delivery of operational technology platforms agreeable to all the advanced fuel users in the world. Especially the aviation industry. They are also involved with decentralised energy technologies and should value the opportunity to lend exceptional weight to delivering GHG emissions reductions. 500K + 600K in possible income from shares & oil with discounted share options don't seem to be that attractive when compared with the values associated with the D1 Oils IP sales.

Then again what would BP's executives know compared to Bedford Biofuels??? and the rest of us working to deliver the commercialization of Jatropha Curcas Linn.??? After all it is the IATA members, Rolls Royce, Pratt and Whitney, Boeing, Virgin, UOP/Honeywell and others who have tested JCL oil and proved that it could be processed and blended up to 50% with aviation fuel.

They are not that open about it but there is no major technical reasons why (given UOP's results) that Bio Jet Fuel from Jatropha Curcas Linn (and other V-Oils) could not be used at +95% for aircraft.


David McClure, President and Chief Executive Officer of Bedford Biofuels, commented as follows:

"We are immensely impressed with the work D1 has done and the headway it has made with Jatropha. The research and development D1 has produced is exactly in line with our business strategy to supply the growing world demand for non-food-crop biofuel. We couldn’t be more excited to have forged a relationship with D1, which we feel will be of tremendous mutual benefit to our business endeavors."

CKWR says:

The Bedford Biofuels website is a bit short on strategy but hell we are sure they know what they are doing. Having sellected one of the most contentious land areas in Kenya for the development of Jatropha Curcas Linn the company must have some some serious supporting land development ideologies. Of course there is Zambia to consider and they have identified with long term experienced executives.


Subject: UPDATE 2-D1 Oils to buy BP's stake in jatropha JV - Un-fortunately the processes of corrupt malpractice continue to take a lead role. [Incident:090717-000049]


IFAD's policies (along side those of the CLEAN CITIES (UN) hold the key to establishing optimal development opportunities for rain fed underutilised land regions that possess the required soil structure, location, community, infrastructure proximity and enterprise opportunity relationships for least cost delivery of decentralised sub tropical alternative energy (electricity) and advanced liquid biofuels derived from the cultivation of Jatropha Curcas Linn.


www.d1plc.com/news.php...

Unless Bedfordbiofuels owns the "so called" IP in this arrangement the deal is valueless to the company. Ergo, one might anticipate the sale of majority ownership.

Given that the D1 Oils Plc IP, if any exists, is owned by no more than three individuals one could think of a improved "least cost" arrangement.

www.bedfordbiofuels.com/

D1,Currently having raised and expended shareholder interests in excess of £100 Million GBP the company is exiting its relationship with BP UK. At a described cost of £1.1 Million to D1 shareholders. A face saving exercise for BP. Those involved in the JV negotiations of 2007 may no longer be the recipients of an income from BP Plc.

Dear BBF;

Earlier this year, tracking the Kenya/Zambia interests expressed by Bedford Biofuels. My interest in the Kenya location was sparked because it is an area that I have reviewed and know well. The opportunity at the land identified requires to be addressed in a proactive manner because a direct purchase will not emerge as a desirable investment.

One would be inclined to inform any interested party that land ownership by international organizations in this region is historically fraught with deep rooted complications.(Check out the history of the Mau Mau). In fact, in order to achieve the development aims of Bedfordbiofuels it is not a requirement that they hold ownership, rather they deliver effective management that affords national community ownership, micro finance and, long term gainful interests for all parties. My evaluations of Zambia, Zimbabwe, Tanzania, Rwanda, DRC, Congo, Namibia, Mozambique, Angola, Uganda, Ethiopia, Sudan, Nigeria, Ghana, Botswana, Malawi and Sierra Leone suggest strongly that there are few locations in Africa where direct land ownership by an external entity can be seen as a long term sustainable or desirable intervention, least of all when the science related to land selection or management is as weak as it has been these past several years in terms of Jatropha Curcas Linn.

SE Asia and India have also engaged with the release of land to FDI promotors however ownership rights, infrastructure and legal mechanisms are somewhat different from African opportunities. Never the less it is clear that there are major issues to attend to.

The renewed interest by states and investors to purchase or lease agricultural land deserves serious attention. There is plenty of information circulating in the media about such land deals, but there remains a lack of concrete evidence, data and statistics on the nature and extent of such deals. It is especially unclear whether contracts exist for those deals that have been confirmed by government officials. The lack of information about the investments, and the unavailability of contracts, makes any legal analysis difficult. Nevertheless, it is clear that some key and potentially disastrous legal consequences could arise during the life of such investments. It is imperative that both the investing and receiving states are aware of the legal implications, the possible impact on the local population in terms of access to land, water and food, and the consequences that could arise when national laws change or during times of national crisis. At the same time, both the decline of food and oil prices and a global recession that has shrunk investment flows, raise questions about whether the pace and enthusiasm of recent deals can be sustained.

There are enormous economic, social and political risks that are associated with foreign ownership of land and water rights. This was demonstrated most strikingly in the South Korea Daewoo-Madagascar deal, where civil opposition to a range of government policies, including sale of farmland, eventually contributed to the overthrow of the government. Nevertheless, the interest by governments and the private sector in land is unlikely to disappear. The search for land overseas will continue to be a structural feature of a world population that continues to grow and a planet that struggles to keep pace. The global food and energy crises that exploded in 2008 will not be the last, and governments are continuing to prepare for a more permanent state of high food prices and water scarcity.

From early in Y 2000 having engaged with the study of Tree Born Oil Seed crops. Jatropha Curcas Linn and a variety of others, I have know D1 Oils Ltd from 2003 and all of the areas of interest held by the company from this time.

Why so interested in this company?

The potentials for D1 Oils Plc have been astronomical. They remain astronomical.

One buys in if one seeks to aid and assist the processes of corrupt malpractice on a global scale. Given that +27% of the public ownership is in the hands of a late-come investor, currently suffering considerable losses, you can safely assume that 77% of the public ownership is in the hands of some very, very teed off investors. Some, not all, will know that they were duped by misleading declarations at each and every offering of an annual company report from 2004 to date.

D1 Oils Plc has had the opportunity to engage with the development of agricultural land and water rights that could lead to poverty reduction, the delivery of alternative decentralised energy solutions and advanced liquid bio fuels; while reducing GHG emissions. There has been opportunity since 2004 to establish comprehensive synergies with first class university departments and global research institutes in ways that could have established this companies credentials as a world leading UK Plc.

As it stands they have focused on deceit, deception and down right lies. Delivering next to nothing of value at each international location they have visited in the sub tropical regions. They have never secured a workable business model or developed the collaborative partnerships required for first class multi-national investor interventions. In fact, the executives of D1 Oils Plc have snubbed every single opportunity to rationalize the potentials inherent within the conceptual framework that formed up D1 Oils Plc, in favour of using this benchmark to execute the fraudulent raising of finance on the AIM.


Sent: Thursday, June 18, 2009 1:46 PM
Subject: Re: Daily Jatropha Curcas Biofuel News- www.localpower.org/


The global demand for jet fuel in 2009 is estimated to be 6.8 million barrels per day. The total amount of BioJet that could be produced from currently available 2nd generation biomass is estimated to be just over 100 million barrels per day. If additional sustainable grown biomass is produced on marginal agricultural land, thereby not interfering with food crops, then it is estimated that a further 40 million barrels of BioJet could be produced per day. Thus, not only can 2nd generation biofuels completely offset current jet fuel consumption, but could completely replace fossil fuel consumption at current demand if all of these resource streams are utilized. Today, the best-known and most widely produced biofuel is ethanol, deriving from sugar and starch. Current global production is approximately 1 million barrels per day, which represents approximately 1% of current fossil fuel consumption. However, it is clear that the 2nd generation feedstocks represent a widely available and untapped resource that should be exploited for biofuel production.

Any alternative fuel technology that can produce fuel at a cost of less than the jet kerosene price plus 19% by 2020 would be cost competitive. (see IATA document attached)

DECENTRALISED ENERGY:

The wider use of DE is a key solution to bringing about the cost-effective modernization and development of the world’s electricity systems.Existing decentralized energy (DE) technologies can reduce delivered energy costs and decrease emissions of CO2 as well as other harmful pollutants. Inefficient central power systems currently represent the majority of the world's existing installed electricity capacity and generation but there is growing evidence that the DE's market share is growing rapidly. Research by WADE estimates that in 2005 DE accounted for about 10% of installed capacity compared to 7% in 2001. Perhaps even more significant, almost 25% of electricity generated by new capacity added in 2005 was generated by DE installations.

WADE’s five key objectives and programmers
www.localpower.org/


To provide its Members and supporters with value added market intelligence, information and business opportunities;
To bring about effective power sector reform which eliminates barriers to DE and creates real market opportunity for DE;
To co-ordinate the creation and monetization of high quality carbon credits from DE projects;
To compile global data on all aspects of DE development;
To support the establishment of DE groups in every country.


JCL Cultivation: Sub-Tropical High Energy Plant Species grown on Marginal Land under Rain Fed Conditions. (?)

The key to feasibility is related to a comprehensive agriculture to industry model. Existing activities (D1 Oils PLC in particular) lack a clear evaluation of related and/or potential income generating value chains, non have not raised sufficient capital or logically applied capital to afford a least cost integration with national-international government/donor/devel... backed opportunity related agriculture and industry sectors:

(City-Town-Village) waste to energy (CHP) + agricultural output (Fertilizer)
(City-Town-Village) waste to agricultural output (Fertilizer + water)

Degraded & underutilized land enhancement.

National Agriculture to Energy Centres of Excellence- Management of relationships to Political Executive and Policy officers - Management of Agricultural Calendar - Development of plant species; Optimization of harvest potentials-production of primary seedling supplies + rooting bolus, plant species specific land (SOIL) evaluations, protection and extension servcies (Community and/or plantation) - growth support, plant species harvest maximization methodology (biomass and seed oil) - harvest collection methodology(s) - valuation and purchase mechanisms - transport to processing at:

Strategic location value adding BioRefinery Complex (s) with outputs products direct to local market or export for both direct use and further value adding processing:

Products:
biomass to energy (electricity + Heat) CHP.
biomass to energy (Pyrolosis-MixAlco-) to liquid fuels-Salts+Chemical reactions to Bio gasoline-diesel-Jet Fuel)
bio oil extraction to liquid fuels and lubricants (micro system UOP's renewable SPK from jatropha oil (?) not least cost! see attached pdf)
biomass to fertilizer
biomass to animal feedstocks
Biomass to valuable biochemical and pharmacy extracts
biomass to bioplastics
Plus Plus....Potentials from further Biochemistry.


The overarching sentiments promoting investments into the cultivation of JCL have been to obtain an ROI from adding utility to the existing stock of degraded/underutilised rain fed land in the sub-tropical regions, reduce poverty, substitute fossil fuel for renewable alternative fuel, profit from the exploiting of CDM/UNFCCC policies.

Requires ownership of:

+ Value Chain Management:-
Elite downstream - upstream CHP projects and PPA (Power purchase agreements)
Bio products from primary CHP activity.
Centres of Excellence, management applications with of JCL- General Agricultural-Land and Water IP (intellectual property).
Related Logistics, management and servcies platform
Advanced Biorefinery operations and outputs
Synergy with national development policy objectives Community & Commercial - Agriculture, Land, Finance, Investment, Energy, Aviation, Transport, Alternative Energy/Fuel, Regulatory and development/management policy executive(s).
Synergy with international development policy objectives, considerations, and internationals development finance support platforms. (WB. ADB. DFID. GTZ etc etc)


The KBC concept is to develop a complete regional template that attempts to embrace all of the above with the idea that this template can be replicated (rolled out) at high potential locations in the sub-tropics.


HOWEVER; an ability to establish commercial value stands of Jatropha Curcas Linn in subtropical degraded, "marginal" rain fed locations has not been demonstrated by any company established in the subtropical regions of Africa, South America, India, SE Asia or any island state. There is no known species transgenic, GM modified or improved TC breeding stock of Jatropha Curcas Linn.

Irrespective of the above.

Wild seed Jatropha Curcas Linn under optimized conditions can deliver + 5 Mt per Ha of seed oil from +60Mt/Ha of harvested Biomass. (6-8% oil on average).

Obtaining the above premium results in the field has proved to be elusive because in order to do so one has to ensure and manage the delivery of inputs in direct continual support of the primary operatives "FARMERS" be they employed or the self-employed owners of the land land resource.

IFAD's policies (along side the CLEAN CITIES (UN) hold the key to establishing optimal development opportunities for rain fed underutilised land regions that possess the required soil structure, location, community, infrastructure proximity and relationships for least cost delivery of alternative energy (electricity) and advanced liquid biofuels derived from the cultivation of Jatropha Curcas Linn.

Jul 19 08:42 AM

[SubsidyEye:]

I agree with Long_on_oil: in the biofuels world there is a vast difference between technical feasibility and economic feasibility. Journalists and bloggers need to be asking questions about the latter and not just the former.

The articles about the planned algae-fuelled power plant in Venice, Italy are long on hype and short on details:

ecoworldly.com/2009/03.../

First the articles say that "Italy recently announced a 200 million euro eco-friendly project TO HARVEST the prolific seaweed that lines Venice’s canals and transform it into emissions-free energy." [My emphasis.] Then the article says "The algae will be cultivated in laboratories and put in plastic cylinders where water, carbon dioxide, and sunshine can trigger photosynthesis. The resulting biomass will be treated further to produce a fuel to turn turbines."

Well, which is it, folks? Will the algae be harvested, dried, and then combusted as a solid fuel? Or is it going to be cultivated, and then treated (i.e., oils extracted?) so that it can be used as a fuel in gas turbines?

I'll believe this one when I see it.

Jul 19 09:27 AM

[Mad Hedge F...:]

Maybe this sector will finally deliver. As a former research biochemist at UCLA, I have long viewed biofuel as a huge waste of time, because there are not enough hamburger stands in the whole world to generate the needed grease for recycling. Ethanol was never more than expensive pork for corn producing swing states, and it’s no surprise they are going bankrupt, even with large subsidies. That’s ignoring the fact that they were burning food to power our chrome wheeled Cadillac Escalades, driving up prices for the starving masses in emerging markets. But when Exxon (XOM) commits $600 million to move algae from the realm of science fiction to mass production, I have to sit up and pay attention. This is not a company that is interested in tree hugging or saving the world, but in the hardnosed business finding and selling energy for a profit. There is no law confining them to the oil business, and it is wise for them to find alternatives while they have the bucks to do it. Never underestimate the power of pond scum. Algae have been used for centuries to produce agar and additives for food, cosmetics, and medicines. You’re probably already eating more than you realize. According the Exxon (XOM), one acre of algae also has the ability to produce 2,000 gallons of fuel per year, compared to 650 gallons for palm trees, 450 gallons for sugar cane, and 250 gallons for corn. As any marine biologist will tell you, these simple organisms accomplish this by absorbing massive amounts of carbon dioxide and turning it into oxygen, killing two birds with one stone from an environmentalist’s point of view. The catch is that no one has ever tried to do this on an industrial scale, and the production problems are certain to be formidable, with enormous inputs of water and nutrients required. Of course, you probably wouldn’t want to live next door to where this is happening. But if we have to hold our nose to beat the next energy crisis, so be it.

Jul 19 11:55 AM

[mike57:]

Petrosun by far has the advantage. I think it is just a matter of time before they are bought for their technology. Been long and will continue to add at these prices.

Jul 19 12:23 PM

[staples - w...:]

Why no mention of a private company Wise Landfill...now renamed, For Fuel Freedom

www.forfuelfreedom.com/

I would really like to hear an evaluation from people who really understand this stuff. I understand the concept, but the methodology, practicality and the 'will it work', go right over my head.

I did catch that if it proves to be what they claim, it would be pretty cheap to process.

I seriously would like to hear some expert opinions on them. As I have been keeping an eye on it, eversince I read it andhaving a history with gargae dumps, I couldn't help but see what they were talking about. I was intrigued.


Staples


FYI: I hold no interest of anykind other than curiousness in this company

Jul 19 08:23 PM

[momentum74:]

Dont forget about BEHL.PK stock is up huge in the last few months

Jul 19 10:23 PM

[Moon Kil Woong:]

Umm ethanol is pretty much unviable unless oil goes through the roof and makes your food bill high. I must agree with Exxon that so far algae fuel looks the most promising and it can be grown and harvested without sucking up all the ariable land.

The fact that Exxon invested at all in an alternative fuel is amazing. It has avoided alternative fuels like the plauge and has also avoided keeping it's oil reserves stable making you wonder what this giant company wants to do with its money. I wouldn't fault them if they wanted to conert themselves into another too big to fail bank. It seems like a guaranteed no lose position to have.

Jul 20 07:06 AM

[richjoy403:]

I seriously doubt that any of us writing articles or responding here have either the technical specialty or the vision to KNOW if algea WILL or WILL NOT become a marketable transportation fuel.

As for myself, I have allocated <1% of my portfolio to pure speculation, such as oil from algea. From day one, I consider these speculations to be an almost certain total loss -- but I also like to think (hope) there is a TINY sliver of a chance it could be a game-changer that would rid us (finally) of corrupt foreign governments, funding to radical religious groups, and a continuing imbalance in imports/exports. If so, my speculation could possibly have returns in the thousands of percents, as well as make for a better world for my children and grandchildren.

In this case, my investment of choice is 10,000 shares of OOIL -- but I am not recommending it. There are probably several other companies with an equally slim chance of success.

Jul 20 07:17 AM

[staples - w...:]

Go figure
Oh man, this just in. A story from the Persian Gulf today has much of the rest of the world scratching their heads in disbelief. It reports that their algae consists of the highest level bio-oil and other valuable compounds necessary to produce the latest and most likely source of alternative energy for the planet's future. An unnamed source from the Gulf region who is involved with this finding states that oil and other fossil fuels will be soon replaced sooner than anyone anticipated..
This prime algae, located almost directly in front of Saudi Arabia, and on the opposite shore Iran appear to be the early winners in this 'sea scum service station' finding. This algae is so abundant that no type of expensive recovery method will be necessary. It actually washes up on shore and accumulates in massive amounts.
It makes the United States and most of the rest of the worlds algae seem like garbage.
Garbage?...Quick, someone check our dumps too to see if we have what they have too, only better of course

This newly formed APEC ministers will have another briefing shortly regarding the algae progress.

Staples
my thanks to...thedowjokesreport.com
A very original, funny, visually stunning site. So I heard.

Jul 20 09:21 AM

[tc1:]

James, thank you for this sequel to your earlier article on biofuels for the aviation industry, keeping us updated and informed on this important and fast-growing sector.

Jul 20 11:44 AM

[MarkitWacha:]

Algae is capital- and labor-intensive. It's likely to be produced in areas rich in sunshine, with some water, and cheap labor.

If it gets to be big, you might imagine that Mexico would be a good place to grow it. There's got to be a million acres worth turning into pond scum there, with little regulation. It could incentivize the uneducated, undocumented people by the border to stay in their home country, too.

Jul 20 01:06 PM

[acobra:]

you shoudl do an article on BEHL !! Thats the one to watch...

Jul 20 02:23 PM

[JeffDB:]

Robert Rapier had a couple of articles on algae to bio-fuel on the Oil Drum last month.

If interested, you can see his first, a book review of Mark Edwards' book, "Green Algae Strategy: End Oil Imports And Engineer Sustainable Food And Fuel". Mr. Edwards is "a Professor of Strategic Marketing and Sustainability at Arizona State University".
www.theoildrum.com/nod...

Prof. Edwards' reply to that book review was posted on the Oil Drum a couple of weeks later: www.theoildrum.com/nod...

Jul 20 07:46 PM

[User 471168:]

Why do we need genetically modified algae? What happens if genetically modified algae spills on the ground? Every environmentalist will be all over this issue.
There are existing algae strains today that are not genetically modified that have 50-70% oil content already in them.

Aug 13 01:00 PM

[stupid_inve...:]

Please note that SGI is Silicon Graphics, not Synthetic Genomics! The company that ExxonMobil is partnering with for the algae effort appears to be privately held.

Aug 24 10:07 PM