ExxonMobil sent shivers through the algae biofuel world last year, when it gave up a longstanding research partnership with the US firm Viridos, having decided better opportunities to make money lay elsewhere. It's true that algae biofuel is far from the mainstream at this time, but maybe they dropped the ball a little too soon.
Why Algae Biofuel?
Converting algae to biofuel is attractive because many algae are loaded with oils. However, the process is expensive and time consuming, and there are challenges related to storage and contamination, among other considerations. Nevertheless, algae has the potential to produce 10-100 times more fuel per acre than conventional energy crops, making it a tempting target for R&D dollars (see more algae background here).
Aside from higher yields, algae does not raise the land use conflicts posed by conventional energy crops. Those are big issues. The University of Michigan, for example, calculates that the ethanol industry soaked up 37% of corn produced in the US during the 2023/24 growing season.
Back in 2018 when ExxonMobil was still rooting for algae biofuel, the company cited a whole laundry list of reasons to stop growing conventional energy crops and start growing algae. In addition to the land use angle, they pointed out that algae can grow in seawater and other brackish water, avoiding the freshwater stresses posed by corn and other conventional energy crops.
"Algae consume CO, and on a life-cycle basis have a much lower emissions profile than corn ethanol given the energy used to make fertilizer, distill the ethanol, and to farm and transport the latter," the company also noted.
To that, let's add the biodiversity and decarbonization advantages of converting some of the nation's corn-producing acres into mixed-use agrivoltaic arrays, or replacing them with crops that are more amenable to regenerative agriculture, or enrolling them in land conservation programs. If you can think of more options, drop a note in the comment thread.
Others Pick Up Algae Biofuel Ball Dropped By ExxonMobil
ExxonMobil announced that it was ending its algae research partnership with Viridos in the spring of 2023. However, Viridos, which specializes in microalgae, is still alive and kicking. The company nailed down a $25 million Series A equity investment last year with United Airlines Ventures, Chevron, and Breakthrough Energy Ventures in the lead.
In a press release announcing its $5 million contribution, United noted that Viridos grows its algae in seawater, using vessels that can be deployed in hot, dry climates and other areas where arable land and freshwater are scarce.
"Viridos algae have extremely high oil contents facilitating downstream processing to algae oil," United also observed.
Activity is also picking up internationally. On November 15, the firm Research and Markets drew attention to the Asia-Pacific region, where government policy is expected to spur "substantial growth" in the algae-to-biofuel market.
In an earlier report last summer, Research and Markets took note of cost constraints and other significant obstacles to growth. However, they still anticipated strong growth globally.
"Algae biofuel has the potential to provide around 20 times the output of other conventional biofuels like sorghum, beet, corn, and corn stover," the firm observed.
"The algae biofuel market is evaluated at US$6.066 billion for the year 2022 and is projected to grow at a CAGR of 9.08% to reach a market size of US$11.152 billion by the year 2029," they added.
In that report, Research and Markets drew attention to North America for a "noteworthy expansion of the algal biofuel industry" in the coming years.
More And Better Algae Biofuel
Research and Markets also cited "a greater interest in renewable energy sources due to rising concerns about climate change and the need to minimize greenhouse gas emissions" in North America. In terms of federal energy policy, that will depend on what happens after the Biden-Harris administration peacefully hands over the keys to the White House on January 20.
Meanwhile, the Department of Energy is moving forward with a suite of algae biofuel initiatives. On November 14, the agency awarded $20.2 million in funding to a group of new research projects, aimed at producing multiple algae-derived products. Part of the focus is on converting seaweed and other macroalgae to sustainable aviation fuel.
The firm Macro Oceans, for example, will partner with the Energy Department's National Renewable Energy Laboratory on a kelp-waste-to-ethanol process, deploying deploy waste kelp from Macro's existing algae-based bioproducts for eventual use in aviation fuel. Macro currently sends its waste to landfills, so a savings on disposal costs could be in the works. The Energy Department expects the initial project to cut greenhouse gas emissions in half compared to corn ethanol.
Another project in the aviation fuel area is aimed at improving catalytic hydrothermal liquefaction technology and applying it to seaweed, to produce an energy-dense biocrude as a precursor to aircraft fuel. Idaho National Laboratory, Cold Current Kelp, GE Vernova, Rutgers University, and the South Dakota School of Mines and Technology are partnering on the project.
The University of Connecticut will also pair up with Idaho National Laboratory in an aviation fuel project that deploys Arrested Anaerobic Digestion systems on locally farmed seaweeds. AAD systems are described as more effective and energy efficient than conventional anaerobic digestion systems.
Another Reason To Love Algae Products
As indicated by the Macro Oceans projects, algae-to-fuel conversion systems can be leveraged to help businesses manage their waste disposal issues, potentially helping to support the bottom line case for fuel production. Other algae products can come into play as well. The algae protein firm Umaro Foods, for example, will use its Energy Department award to develop a system that diverts its algae waste into bioplastics, in partnership with the firm Sway Innovation Co.
In addition to business considerations, environmental and public health issues are also making the case for algae conversion. One of the selected projects, for example, is aimed at developing an economical way to deal the the enormous mounds of sargassum seaweed washing around the Caribbean Sea, decomposing on beaches and fouling water supplies.
This project hooks up the firm Kona Carbon with HydroGeologic, Inc., Algae Research Supply, and Environmental Mapping Consultants of Puerto Rico to develop a modular system for deployment in Puerto Rico. Biofuel is not in the picture, at least not initially. Instead, hydrochar, activated carbon, and liquid fertilizer are the targeted products.
"The system will be developed to operate self-sufficiently to further improve energy use to meet the objective of the funding opportunity to reduce greenhouse gas (GHG) emissions by greater than 50%," the Energy Department notes.
Keep an eye on the up-and-coming generation of algae researchers for another glimpse into the future. The Energy Department's AlgaePrize student innovation competition launched its current season in January of 2023, with 15 finalists selected to showcase their efforts in April of next year.
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