Update on Alternative Fuels (Algae Oil)

Image by jurvetson via Flickr

A U.S. government funded study of algae for energy production began around the time of the last gas crisis, in 1978. Hydrogen as an alternative fuel source was the initial goal, but algae oil became the focus before the program was eliminated in 1996 so that the Department of Energy could compile and produce a finished report. Gasoline was three times cheaper then and the gas crisis was over. SUVs were a must-have for many people.

Cultivation of algae as an oil source has had its ups and downs, with hydrogen continuing to be the first thought of both government and business, but algae oil seems to be picking up interest again. And not just because of the volatility of the petroleum market.

Thirty years ago, more conservative investors may have balked at the idea of investing in algae farms – such notions were considered more the province of a sandal-and-granola crowd, not the button-down shirts on Wall St. In the present, many of the lifestyle interests of yesterday’s counterculture have become accepted in the mainstream. Entrepreneurs from the previous generation are now seasoned investors with a more favorable take on sustainable agriculture and alternative fuels.

A hitch in algae farming has always been that producing a gallon of algae oil is still not as cost-efficient as producing a gallon of petroleum. But algae grows extremely fast, can be turned into a liquid and doesn’t produce carbon dioxide which, in petroleum processing, is buried underground. For these reasons, its potential as a biofuel continues to attract investors like Bill Gates, who has put millions into Sapphire Energy of San Diego, to produce a commercially viable algae-based fuel. And stung by rising fuel costs, companies like Continental Airlines have partnered with biofuel companies to prove the viability of biofuel for jet use.

The combination of new technology, Boomer money, an acceptance of ideas previously discounted as “out there” and young, less buttoned-down entrepreneurs is revving up interest in biofuels, just in time to be seized upon by nations with less access to traditional fuels. A number of algae biofuel conferences are planned for this year, including two in September: a second Algae Biofuel conference will be held in India, which has explored several alternatives to petroleum, including cattle-driven electricity generators, and there will also be the National Algae Association conference in Houston, Texas.

It’s no longer a question of whether or not algae oil can replace petroleum-based diesel, but how long it will take before its use is cost-effective enough to – in conjunction with other alternative fuels – force a major shift in the fuel markets. Here at the 40th anniversary of the moon landings, it seems appropriate that another technology that once seemed lost in the realm of fantasy should be coming to reality as we watch.

And while we’re talking about watching, take a look below the post today – we’ve added a barrel counting widget from Chevron that lets you know how many barrels of oil have been consumed as you’ve been reading about algae oil production. Goes by pretty quick, doesn’t it?

Chevron also provides another widget that helps us see how energy saved can be energy found. Consider adding it to your own page to promote energy conservation. And remember that carpooling to work or conferences saves gasoline that can then be used for something more fun!