Food and Agriculture Organization of the United NationsFish Products and Industry Division

Viale delle Terme di Caracalla00153 Rome, Italy

Tel.: +39 06 5705 5074Fax: +39 06 5705 5188

www.globefish.org

Volume 97

Mr. Antonio Piccolo

M

.A. in E

nergy and Sustainable D

evelopm

net - 2009

A Dissertation submitted in part fulfilment

of the requirements of the Degree of

Master in Business Administration at

Link Campus - University of Malta

AQUATIC BIOFUELS

New Options for Bioenergy

International MBA in Energy and Sustainable Development

October 2009

DECLARATION:

I CERTIFY THAT THIS IS MY ORIGINAL WORK; EXCEPT WHERE SOURCES ARE

ACKNOWLEDGED, AND THAT THIS DISSERTATION HAS NOT BEEN SUBMITTED

IN PART OR IN WHOLE TO ANY OTHER BODY.

ACKNOWLEDGMENTS:

I would like to acknowledge for the work of this dissertation;

Dr. Ugo Farinelli, my Professor at Link Campus – University of Malta, , for his

help and support in preparing this paper.

Dr. Gustavo Best for initiating me to algal culture.

The staff at Link Campus – University of Malta for their administrative help

and support.

Finally my parents Mr. Mattia Piccolo and Mrs. Anna Maria Piccolo for their

constant help and support.

ABSTRACT

MR. ANTONIO PICCOLO

AQUATIC BIOFUELS – NEW OPTIONS FOR BIOENERGY

Recent talks have outlined the disadvantages of land based (agro-fuels) as feedstock for biofuels.

This final dissertation for the MBA in Energy and Sustainable Development looks at these

disadvantages and proposes an alternative scenario, i.e. The potential of aquatic alternatives.

Aquatic Biofuels – New Options for Bioenergy looks at the potential of micro-algae and fish

waste as feedstock for biofuel. Micro-algae come in different strains, strains differ in their

composition some have more lipids/oils, others have more proteins and others yet have more

carbohydrates. The chosen strain will determine what kind of biofuel can be produced or if the

strain contains less lipids and more carbohydrates or proteins, the algae can produce bio-gas.

Current technology in algae extraction is also covered in the report, the most advanced systems

exist in the US who claim they will commercialize algae to fuel extraction in the next 3-4 years.

Israel too is one of the main countries producing micro-algae however their main focus has always

been on spirulina (high in protein) as a health supplement. Most recently Israel too has had some

major developments in producing fuel from micro-algae. Fish waste (the waste from the fishing

industry) has been used by fishermen for centuries, when oil prices went up fishermen would

produce their own diesel from the waste of their catch. This concept is therefore not at all new.

What would be innovative would be the scale up process. There are a few companies worldwide

that are producing bio-diesel from the waste of the fishing industry, these are found predominantly

in developing countries, Honduras and Viet Nam, but also in Canada and the state of Alaska, USA.

Bio-diesel from fish waste plants could be set up in aquaculture farms, fishing ports, or even on

large fishing trawlers, to allow fishermen to economise on fuel, which is becoming an economic

burden. In fact due to this worldwide fish prices have increased drastically in the last 5 to 10 years.

It is clear at this stage that algae alone is not yet an economically viable solution to the liquid

energy needs of the world. Economic viability could be achieved when science and technology will

be able to give us mechanisms to improve lipid/oil extraction and improve mass production of

algae. In the meantime however, by-products from the algae cultivation and the revenue obtained

from the sequestration of CO2 can make the system worthwhile. The other alternative is if we can

combine the potential of micro-algae and fish waste. The Integrated Aquaculture Energy System

(IAES) described in Chapter 16 combines the 2 systems i.e. algae and fish waste into one. This is a

fully sustainable synergistic system, that makes use of all the possible resources for energy creation.

The system not only addresses fuel needs, but also food security, job creation, climate change, CO2

sequestration and treatment of waste water. Aquatic Biofuels and the IAES system offer in part a

solution to the liquid fuel problem which the world will have to face in the coming decades.

i

Table of Contents

1. What are Aquatic Biofuels?............................................................................1 1.1. Background……………………………………………………………………………………1 1.2. Types of Aquatic Biofuels……………………………………………………………………1

2. Why Aquatic Biofuels......................................................................................2

3. Agro-fuels and their impacts ..........................................................................3 3.1. On biodiversity...............................................................................................................4

3.2. On markets....................................................................................................................4 3.3. On food security............................................................................................................4 3.4. On the environment.......................................................................................................5 3.5. On agricultural demand and production........................................................................5 3.6. On land use...................................................................................................................6

4. Algae growth, harvesting and yields .............................................................7

4.1. Biomass production.......................................................................................................8 4.2. Nutrients and Nutrient stress.........................................................................................8 4.3. Cultivation of algae........................................................................................................9 4.4. Cultivation of algae - challenges..................................................................................11

5. Algae oil and biodiesel production ..............................................................12

6. Algae strain selection and by-products.......................................................13

7. CO2 abatement and Climate Change mitigation .........................................15

8. Waste water and algae growth .....................................................................17

9. Overall challenges.........................................................................................18

10. Costs and revenues of algal culture ............................................................20 10.1. Economic Viability.....................................................................................................22

11. Algae Companies and news .........................................................................22 11.1. USA...........................................................................................................................22 11.2. Rest of the world........................................................................................................27

12. Fishwaste and Aquaculture Farms ..................................................................28 13. Converting fishwaste from the fishing industry to biodiesel ........................29

13.1. Introduction................................................................................................................29 13.2. Biodiesel production..................................................................................................29 13.3. Technology and plants..............................................................................................30

14. Building a fish waste to biodiesel plant...........................................................40 14.1. Objectives and project implementation.....................................................................40 14.2. Environmental concerns............................................................................................41 14.3. Concluding remarks...................................................................................................41

15. Costs and investments .....................................................................................42 16. Integrated system algae culture + aquaculture ..............................................45

ii

17. Adaptability of Aquatic Biofuels to the Union for the Mediterranean countries............................................................................................................46

17.1. Factors to be considered.............................................................................................47 17.2. Economic viability........................................................................................................48 17.3. Current work in algae oil production in the EU............................................................49

18. Conclusions.......................................................................................................50

19. References .........................................................................................................51

TABLES AND FIGURES

TABLE 1 CULTIVTED LAND WORLDWIDE IN MILLIONS OF HECTARES.......6

TABLE 2 SOME ALGAE STRAINS – COMPOSITION OF ALGAE (% OF DRY

MATTER)..........................................................................................................14

TABLE 3 FISH SPECIES AND THEIR OMEGA 3 FATTY ACID CONTENT.........30

FIGURE 1 ALGACULTURE PRODUCTION SYSTEM................................................15

FIGURE 2 YIELDS PER HECTARE OF MICROALGAE COMPARED TO OTHER

LAND BASED FEEDSTOCK...........................................................................16

FIGURE 3 BIO-DIESEL SCHEMATIC PROCESSING SYSTEM...............................33

FIGURE 4 IAES – INTEGRATED AQUACULTURE ENERGY SYSTEM................46

FIGURE 5 POTENTIAL MEDITERRANEAN AREAS FOR ALGAE CULTURE....47

BOX 1 SELF-BUILT SYSTEM PRODUCTION COSTS AT 250,000 LITRES

PER YEAR OPERATIONAL PERSPECTIVE............................................44

BOX 2 A FULLY-AUTOMATED ACID / BASE TWO STAGE MODEL WITH

WATER WASH OPERATIONAL PERSPECTIVE....................................44

PHOTO CREDITS: Antonio Piccolo (Aquatic Biofuels)

1

1. WHAT ARE AQUATIC BIOFUELS?

1.1. Background

Aquatic Biofuels embrace a relatively new concept which involves the extraction of

energy, predominantly liquid fuels (bio-diesel or ethanol) and bio-gas from aquatic

resources such as, micro-algae and fish waste from the fishing/processing industry.

The production of biofuels in the last decade or so has been mainly driven by first and

second generation feedstock. Agricultural products have been used to produce mainly

liquid fuels and this has had a considerable impact on agriculture, food security,

biodiversity, land use and the environment.

First-generation feedstock for biofuels production include:

• Sugar cane

• Maize

• Cassava

• Rapeseed

• Palm oil

• Soybean

Second-generation feedstock for biofuels production include:

• Non food parts of currently used crops (stems, leaves and husks)

• Switch grass

• Jatropha

• Wood chips

• Skin and pulp from fruit pressing

1.2. Types of Aquatic Biofuels

The primary feedstock for the production of Aquatic Biofuels are micro-algae, these are

one of the most ancient organisms living on Earth and one of the tiniest plants which alone

produce about 60 percent of the Earth’s oxygen. They have survived some of the Earth’s

harshest conditions for several billions of years are incredibly robust, and in ideal

2

cultivation conditions, algae produce protein and energy biomass between 30 to 100 times

faster than land plants.

Waste from the fishing industry is another valuable feedstock for Aquatic Biofuels. It may

be converted into fish oil then into bio-diesel, which runs perfectly in any diesel engine.

Any marine or aquatic organism can be included in the concept of Aquatic Biofuels, but

for the purpose of this report, only micro-algae and fishing industry waste are covered.

Macro-algae is referred to but not covered in the report.

2. WHY AQUATIC BIOFUELS

Aquatic Biofuels (AB) is a term coined by me and as mentioned above it involves the

extraction of energy, either in liquid form (biofuel/diesel/ethanol) or as gas. It is clear why

should investments be made in AB is clear. Both algae and fish waste are totally carbon

neutral and algae-culture sequesters Carbon Dioxide (from now on referred to as CO2)

from nearby plants and converts it into biofuel 1 tonne of algae captures and stores almost

2 tonnes of CO2 (1.8tonnes). Bio-diesel from the fish waste is also greenhouse gas neutral

and fully sustainable.

Both systems require little water. In the case of algae culture water can be saline, brackish

or fresh water, whereas with the fish farm that will predominantly depend on the type of

fish being aquacultured. In both cases the water is recycled and no extra water is required.

Algae require nutrients and CO2 to thrive and the CO2 can be sequestered from nearby

emitting plants as well as cement production facilities. Nutrients can be either purchased

and fed to the algae, or a better solution is to use waste water which is rich in nutrients.

This would also solve a second problem of what to do with local waste water.

Aquaculture is the main dominant skill required in both systems. Growing algae or

growing fish is a similar process so no specific skill set is required by the producer.

Building or buying systems to extract the oil on the other hand can be a little more

complex but many companies who are developing such systems provide guidance as well

as training.

Aquatic resources that produce clean energy may not be the total solution to the worlds

3

energy needs and demands, but they do offer a partial solution; a solution which is carbon

neutral, and producing and using them has little or no impact on the environment. As a

society we must slowly move away from our dependency on fossil fuels. We must look at

local sustainable and clean alternatives and start producing energy locally. This will not

only reduce costs but it will also help secure a cleaner environment, free from greenhouse

gases. Fish waste can contribute to securing energy for small to large fishing villages, ships

and vessels, and local communities, while algae ponds or bio-reactors can play a part in

securing larger amounts of energy once the economic hurdles are overcome.

3. AGRO-FUELS AND THEIR IMPACTS:

Biofuels (mainly agro-fuels) can be divided into first-generation and second-generation

biofuels. First-generation biofuels are biofuels that derive from food products. These food

products are often seeds or grains. For example food products such as wheat which

contains starch can be fermented to produce bio-ethanol or pressed sunflower seeds can

yield a vegetable oil that can be converted into a bio-diesel. The main issue here is, if these

products are used to produce energy then there will be less wheat and fewer sunflower

seeds for food. The main cause of the downfall of first-generation biofuels is the fact that

they have been strongly criticised for diverting food away from the human and animal food

chain, leading to food shortages, soaring food prices and riots.

First-generation biofuels can be produced in either liquid and/or gaseous form. In order to

produce liquid fuel, crops high in sugar (sugar cane, sugar beet, and sweet sorghum) or

starch based crops like maize/corn are grown, then yeast is used in a fermentation process

to produce ethanol. The second method is to grow oil rich plants like oil palm, soybean

jatropha and extract the vegetable oil. These vegetable oils are very thick and their

thickness is reduced mainly by heating, thus making them suitable for a diesel engine, they

can be further chemically processed and made into a bio-diesel. The bio-gas can be

produced consequently after oil or ethanol production, the left over biomass can be

anaerobically (without air) processed and bio-gas produced

These biofuels at first seemed to be the answer to the liquid fuel production and for many

years attracted great investments both in the EU and in the US.

4

Second-generation biofuels, are those biofuels that can be generated sustainably from

biomass that does not consist or constitute a food part. This may include stems, leaves and

husks of plants which are residue from food crop production, or other crops that are not

used for food, such as switch grass, jatropha, cereals that have little grain content, as well

as industry waste such as wood chips, skins and waste from the fruit industry. The process

involved in second-generation biofuel production is similar to first-generation and the

feedstock is treated in more or less the same way.

In the long run agricultural biofuels will have the following impacts;

3.1. ON BIODIVERSITY:

As the world population increases, so too will its demand for energy. Many scientists

fear that the greater adaptation of land used to produce crops for biofuels the greater the

loss of habitats will be for animals and wild plants especially in the large rainforest areas of

the world. For example, Asian countries could sacrifice their rainforests to build more oil

plantations, as too would the Brazilian forest give way to sugar plantations for ethanol.

The replacement of local crops with monoculture energy crop plantations could threaten

agro-biodiversity as well as the extensive knowledge and the traditional skills of

smallholder farmers in the management, selection and storage of local crops. This

knowledge is often held by women who would not only lose these traditional skills, but

also see land being taken away from them to produce commodities for biofuels.

3.2. ON MARKETS:

Another concern is that as biofuels become more lucrative for farmers, the farmers

subsequently grow crops for biofuel production instead of food production. Lower food

production increases prices and causes a rise in inflation. Some farmers will benefit

from the high prices of the biofuel crop; in contrast, urban and rural poor in food importing

countries will pay much higher prices for basic food staples.

3.3. ON FOOD SECURITY:

The developing countries of Africa import about 10 million metric tonnes of maize each

year; another 3–5 million metric tonnes of cereal grains are provided as humanitarian aid.

5

We are in a world where more than 800 million people are already undernourished and the

demand for crop commodities may soon exceed supply. In the last 30 years hunger

alleviation has mainly been tackled through poverty alleviation and equitable food

distribution programmes. However, in the future this may no longer be the case, as

humanitarian food aid is threatened by soaring commodity prices. Future food security will

also depend on accelerating the rate of gain in crop yields and food production capacity at

both local and global levels. The rate at which food will be produced will have to

drastically increase to avoid expected shortages and allow for the increase in world

population.

3.4. ON THE ENVIRONMENT:

Another concern is that intensive farming increases the amount of nitrogen and nitrogen

oxide released into the environment. To farm biofuels, currently means using nitrogen

fertilizers, as is common practice amongst farming communities. Fixed nitrogen is

naturally present in soil but becomes N2O. N2O is a by-product of fixed nitrogen

application in agriculture and is a greenhouse gas with a global warming potential (GWP)

296 times larger than an equal mass of CO2. Nitrogen is also naturally present in the

atmosphere but chemically fixing nitrogen interferes with the natural equilibrium and life

cycle of nitrogen. Nitrogen fertilizers are also water soluble and therefore can be washed

away into rivers causing health problems to the life in lakes and rivers, and can also enter

potable water systems.

Each acre of agricultural production adds about 2.25 tones of CO2 to the air1, and corn

production adds additional nitric oxide which is a worse greenhouse gas than CO2.

3.5. ON AGRICULTURAL DEMAND AND PRODUCTION:

In the following 2 decades world population is predicted to increase by about 1.14 percent

and most of that increase is expected to be in developing countries with a focus on China

and India and other middle income developing countries. This will mean a significant

increase in demand for meat and dairy products. Cereals are of direct concern here and

competition will arise with the production of ethanol.

1 Dias de Oliveria, Marcelo E., Burton E. Vaughan, and Edward J. Rykiel Jr. “Ethanol as Fuel: Energy, Carbon

Dioxide Balances, and Ecological Footprint.” BioScience 55:7 (2005):593-602

6

3.6. ON LAND USE:

Around 1.6 billion ha of land are being used currently for crop production, and almost 1

billion ha of that is in developing countries. Africa and Latin America have the most arable

land expansion potential, whereas there is very little scope of expansion in Asia which is

home to some 60 percent of the world’s population.

In a scenario made by IIASA for OFID in “Biofuels and Food Security” projected global

use of cultivated land increases by about 200 million ha between 2000 and 2050 in total,

however most of that increase is in developing countries whereas developed countries

remain fairly stable. Africa and SA account for 85% of the increase of land use for

agricultural produce. These scenarios include crop demand for biofuel production and the

results illustrate that about 150 million ha of additional arable land will be required b 2050

to meet the demand.

Table 1. Cultivated land worldwide in millions of hectares

Cultivated land (million hectares)

YEAR 2000 2010 2020 2030 2050

North America 234 236 238 241 245

Europe & Russia 339 339 338 337 332

Pacific OECD 57 59 58 60 63

Rest of the World 42 41 40 39 37

Africa 225 245 265 287 316

Asia, East 147 146 146 146 145

Asia, South 274 282 289 295 300

Latin America 174 194 213 230 247

Middle East & N. Africa 67 69 70 72 73

Developed 673 675 674 677 678

Developing 887 937 984 1030 1081

World 1560 1612 1658 1707 1759

Source: IIASA world food system simulations; scenario, December 2008

7

4. ALGAE GROWTH HARVESTING AND YIELDS

Some algae strains contain up to 60% lipids and produce over 50% net oils that can be

converted to high-powered jet fuels or bio-diesel.

Many algae producers began algae culture purely by chance either because they had

surplus tanks that spontaneously produced algae which they began to grow it as a food

substitute for feed corn, or because they found an open pond that naturally grew algae.

Many companies who have actively ventured into algae production for fuel are listed in

Chapter 9. Some of these US-based companies claim they will be able to commercialize

algae oil by 2010-2012. The EU is taking a stand back approach and has put down a

probable goal of commercialization by 20202.

Algae can be either sexual or asexual creatures. Their sexual reproduction system is rather

complex but very efficient and in one day a plant may produce up to several million

descendents. Asexual propagation on the other hand is a combination of three different

strategies:

• Cellular division (divides the cell in two and the cells separate)

• Fragmentation (pieces break off the parent and start growing individually)

• Spores (creates zoospores which break off and start growing independently)

Algae can grow in either way depending on their structure and in some cases use both

systems to reproduce. In some variants of algae, like the green algae for example

reproduction could be altered if the environment changes or certain conditions in the

environment change, like for example if nutrients change or if moisture levels change.

Stressing is a commonly used term amongst algae producers and is a process whereby

environmental conditions are purposely changed in order to allow algae to grow with

special characteristics. With the correct stress technique in place algae could either grow

faster, or produce more oils or more proteins or more carbohydrates.

Micro-algae are tough little creatures and have the ability to grow quickly when conditions

are favourable. If the conditions change and the plants die, they always leave behind cells

or spores that are capable of revitalizing once conditions are once again fit for growth.

2 European Algae Biomass Summit EABA – Executive Director Mr. Raffaello Garofalo at the EABA first meeting on

June 3-4 Florence, Italy

8

Algae, similar to land plants also use the carrier strategy where fragments of their parts are

carried away by animals.

4.1. BIOMASS PRODUCTION:

Basically micro-algae are plants and the primary requirements for a plant are sunlight,

water and nutrients. Algae that are cultivated are no different except their productivity can

be controlled. In some cultivation systems algae can double or triple in volume in just one

day3. Their growth rate slows down on a cloudy day and shuts down at night making way

for the respiration phase and photosynthesis.

4.2. NUTRIENTS AND NUTRIENT STRESS:

Algae just like any other plant require nutrients and fertilizers to grow productively. There

exist various mediums and recipes for each algae strain and these recipes can be found on

the University of Texas website http://web.biosci.utexas.edu/utex, where algae strains can

also be purchased. Some of these nutrients are provided to the algae through the water

itself and others have to be dissolved into the water. It is important to recycle the water in

order to save on wastage and also to make use of every little amount of nutrients available

through the system.

When algae culture is deprived of a certain nutrient or fertilizer, it goes into defense mode

and begins to chemically change in order to build a protective mechanism. This in turn

alters the composition of the cell and hence certain characteristics of the cell may emerge

while others may diminish, but never totally disappear from the cell. In these cases algae

usually increase in lipid storage.

This adaptability to the local environment enables and has enabled micro-algae to survive

through millions and millions of years and to continue living and evolving.

Whether the algae naturally undergo a stress or are forced to by man, the fact that the

composition of the strain will be affected is certain. Under certain conditions algae can

accumulate neutral lipids up to 50% of their dry weight, mainly in the form of

3 Hu, Qiang. “Industrial Production of Micoalgal cell-mass and secondary products – Major Industrial Species”

Handbook of Micoralgal Culture Biotechnology and Applied Phycology. Ed. Amos Richmond. Oxford, England: Blackwell Science, Ltd., 2004; 264-73.

9

triacylglycerol (TAG)4. These TAGs do not form part of the structure of the cell but serve

as storage for carbon and energy. TAGs are what bio-diesel are made from.

In principle the concept is the same as in other plants, however in land plants the lipids are

stored in tissues or organs such as seeds or fruit. Algae however have the ability to store

several types of lipids in one single cell. The ability to store certain lipids under stress

conditions is strain specific and not genus specific and some algae like cyanobacteria do

not accumulate lipids under stress for example.

Fatty acids are what form and produce lipids in algae strains; they can be either saturated

or unsaturated and can be a medium, long or very long chain. The quality of the bio-diesel

is determined at large by the structure and component of the acid esters. There are several

ways to alter the cell in order to force it to produce the right amount of lipids or

carbohydrates or proteins.

• Chemical and physical mechanisms can stimulate changes and fatty acid

composition of the cells.

• Nitrogen limitation – this affects lipid metabolism and algae. Deficiencies in other

elements such as phosphate and sulfate also (to a minimum degree) increase lipid

accumulation.

• Temperature has a large effect on fatty acids – decreasing temperature increases

fatty acids and tends to make the algae produce more saturated fatty acids, whereas

temperature increase tends to increase lipid content.

• Light intensity – causes changes in the chemical composition of the cell. Low

intensity induces polar lipids while high intensity increases storage of TAGs.

4.3. CULTIVATION OF ALGAE:

There are 3 ways to grow and harvest micro-algae for mass production;

1. Photo Bio-Reactors (PBR) – Man made machines especially designed to grow

algae in optimum conditions. These can be either horizontal or vertical tubes placed

in such a position to absorb the maximum light intensity. Nutrients and CO2 are fed

through the pipes and the water is completely recycled. No loss of water due to no

evaporation. Industries are constantly working on the materials to build and

4 Edwards Mark Green Algae Strategy Tempe, Arizona; Edwards, 2008

10

improve the tubes. Problems that have arisen are that some algae tend to stick to the

inside of the pipe, hence covering the inside and not allowing sunlight to enter.

2. Open Pond System – Small lakes where algae are grown in open air. A moving

paddle wheel is set in place to allow the algae to circulate in order to obtain

sunlight, and to absorb maximum nutrients whether from the waste water or from

the environment.

3. Closed Pond System – Similar to small lake, but with a cover to protect it

from contamination and extreme weather.

Growth and reproduction of algae cells occurs when a variety of variables are in place.

These variables are required not only to induce growth but can also change the chemical

composition of the cell itself.

• Light – both natural light and artificial light can be used. Some photo bio-reactor

systems have light inside the tubes for night time growth and reproduction.

• Mixing – Most growth takes place on the top layer because that is the area that

faces the sun more frequently, therefore in order for the rest of the algae to take in

the sun intensity mixing is required. Each cell needs to move about and take in light

and go to the dark as well as taking in CO2 and release O2.

• Nutrients – Algae require the same kind of nutrients as any other land plant. They

do require less however per kilogram of biomass, and due to the fact that the

nutrients are dissolved in the water and the water is recycled – none are wasted.

• Water – Any kind of water is suitable, brackish, saline or freshwater, particularly

efficient is the use of waste water due to the nutrients content.

• CO2 – This is what makes algae thrive. They grow exponentially with CO2, which

can be fed to them through tanks similar to oxygen tanks for underwater scuba

diving or as a flue gas from large nearby emitters.

11

• pH – Controlling the acidity of the water (pH) means also making sure the algae is

not changing its chemical composition. If the pH is kept at the correct amount,

invasive and competing algae will not take over.

• Stability – When the algae grow too fast it is difficult to maintain a high stability.

They may retain too much of any nutrient or retain O2, causing stress on the algae

and forcing a change in their chemical structure.

4.4. CULTIVATION OF ALGAE – CHALLENGES:

Algae plants grow very quickly to a maximum until they hit a limitation on mineral,

chemical, nutrient, light or temperature. If one of these nutrients is absorbed to maximum

the plant will stop growing and wait until more of the minimum is again available. One of

the major challenges of algae culture is making sure that there are continuous nutrients

available. One other problem is that algae do not graze; they cannot move and hence they

have to rely on food that comes to them. Rich, thick biomass grows very quickly and at

times impedes the mixture of nutrients and sunshine making it a challenge for all the cells

to receive the right amount of nutrients.

The world requires about 80 million barrels of oil a day. A square metre of water (given

that the right nutrients and CO2 and sunlight are available) yields roughly over 60gr of

algae, which means that 1 hectare should be able to yield about half a tonne. Therefore to

completely replace the 80 million barrels of crude oil with algae oil we would require 30

million hectares of land. That equates to an area the size of the Philippines or one tenth of

India.

This is not an impossible achievement if the technology and costs are lowered and yields

improved with strain selection, stressing the algae and perhaps genetic modification of the

strain itself. Although the European Union (EU) would probably not accept the GMO’s

due to their tough regulations on Genetically Modified Organisms (GMO’s). Furthermore,

we would have to be careful with using GMO’s especially if the algae biomass is used as

animal feed after the oil extraction. This would mean that the GMO would somehow enter

the human food chain.

12

5. ALGAE OIL AND BIO-DIESEL PRODUCTION

Once the algae have grown it needs to be harvested and is typically done in the late

morning period of the day when the algae has maximum cell density. Not all the algae are

harvested however (roughly ¼ is left), to allow continuous growth and harvesting the

following day.

There are 3 main ways to harvest algae: froth floatation, settling and flocculation.

Depending on the strain and species one way may be more suitable than the other.

• Settling: This is a simple process whereby the algae is allowed to settle overnight

(without mixing) to the bottom of the pond (open pond system) where they can be

removed and dried. Alternatively the water can be passed through a fabric or filter

and the algae can then be simply scraped off and dried.

• Flocculation: This is a process where particles are suspended in the form of floc or

flakes. Small solids form in clusters and aggregate which makes it easier to see and

to remove with filters. CO2 deprivation causes algae to flocculate spontaneously –

auto-flocculation.

• Froth floatation: This is a process where the water is aerated allowing froth

together with algae to float and be skimmed off just like the froth on hot milk.

Once the algae have been harvested using one of the above systems, it requires drying.

This is usually the most expensive step in the algae oil extraction process because it

requires a lot of energy if the drying is done with current available technology. These are

machines that either centrifuge or de-moisturize the algae so that only about 5% of water

remains. Alternatively the sun is the best drier and certainly the most economical; the more

efficient the drying process is the maximum number of components can be extracted from

the biomass5.

As already mentioned the algae cell wall is very robust and hard to crack in order to extract

the oily lipids. Various methods exist from pressing to using chemicals and sound. Some of

the most common are listed below.

5 Edwards Mark Green Algae Strategy Tempe, Arizona; Edwards, 2008

13

• Chemical solvents – Usually benzene is used to extract the oil. These solvents are

dangerous to work with so one need to be careful when using them. Vapours and

direct contact with skin can cause damage. Benzene is flammable and is a

carcinogen.

• Soxhlet – This method of extraction through a washing process with chemical

solvents like hexane or petroleum ether.

• Enzymatic – Extraction is obtained by degrading the walls of the cell by using

ezymes, the water then acts as the solvent and eases the extraction of the oil.

• Expeller press – Crushes and pushes the oil out of the dry algae biomass very

much like wine is crushed out of grapes and oil out of olives.

• Osmotic shock – If there is a sudden reduction on osmotic pressure6 the cell walls

can rupture. The oil surfaces and it can be skinned off the top.

• Ultrasonic extraction – This process creates bubbles in a solvent. When these

bubbles burst near the cell they create shock waves which cause the walls to break

and release the oil.

Science and technology is making great progress in this field and new ways and

methods of extracting oil from algae are being invented and patented on a regular

basis.

6. ALGAE STRAIN SELECTION AND BY-PRODUCTS

Micro-algae are one of the smallest, most ancient and robust organisms living on Earth and

one of the tiniest plants, which alone produce about 60 percent of the Earth’s oxygen. They

have survived some of Earth’s harshest conditions for several billion years due to their

incredible and robust cell wall. Ironically, it is this very same thick cell wall that is very

energy intensive to break into (in order to extract the oil) and is one of the reasons that full

scale commercialization and production of algae oil has not yet been achieved.

6 Osmotic pressure is the pressure that must be applied to a solution to prevent the inward flow of water across a

semipermeable membrane – www.wikipedia.org

14

Micro-algae come in a variety of strains (variants) and each strain has different proportions

of lipids (fats), starches and proteins. Depending on this proportion the algae can be used

to produce oil for bio-crude or if the variant contains more carbohydrates and less oil it can

be fermented to make ethanol or biogas. It is interesting to note however, that many algae

species have been found to grow very fast and to produce great amounts of oil (up to 50%).

These are called oleaginous algae and are suitable for the production of liquid fuels.

TABLE 2. SOME ALGAE STRAINS – COMPOSITION OF ALGAE (% OF DRY MATTER)

ALGAE LIPIDS PROTEIN CARBOHYDRATES

ANABAENA CYLINDRICA 4-7 43-56 25-30

APHANIZOMENON FLOS-

AQUA

3 62 23

ARTHROSPIRA MAXIMA 6-7 60-71 13-16

BOTRYOCOCCUS BRAUNII 86 4 20

CHLAMYDOMANAS

RHEINHAR

21 48 17

CHLORELLA ELLIPSOIDEA 84 5 16

CHLORELLA PYRENOIDOSA 2 57 26

CHLORELLA VULGARIS 14-22 51-58 12-17

DUNALIELLA SALINA 6 57 32

EUGLENA GRACILIS 14-20 39-61 14-18

PRYMNESIUM PARVUM 22-38 30-45 25-33

PORPHYRIDIUM CRUENTUM 9-14 28-39 40-57

SCENEDESMUS OBLIQUUS 12-14 50-56 10-17

SPIRULINA PLATENSIS 4-6 4-630 13-16

SPIRULINA MAXIMA 6-7 60-71 13-16

SIROGYRA SP. 11-21 6-20 33-64

SYNECHOCOCUS SP. 11 63 15

Source: Edward, Green Algae Strategy

As we have seen from the various strains and their cell structure, algae come in a variety of

forms. Some have a very high lipid content like Botryococcus braunii or Chlorella

Ellipsoidea others are rich in proteins Spirulina Platensis (effective in aids patients).

Therefore depending on the strain chosen we can chose to produce either biofuels or

ferment the algae to produce bio-gas.

15

If we take one particular strain, for example Botryococcus braunii we can see it is very

suitable for oil production due to its high lipid content. From this particular strain we could

probably obtain about 50% oil content from its dry physical state. Once the oil is extracted

(various technologies to extract the oil can be found in chapter 5 of this document) the dry

left over matter can take several pathways from which valued by-products can be made.

For a start the dry left over biomass can go through an anaerobic process and hence

produce bio-gas to generate energy for the algae farm itself. The left over fodder and

fertilizers can still further be used. Another alternative is to use the left over dry matter

which is still rich in Omega3 as a food supplement for fish.

Figure 1. Algaeculture Production System7

Source: Edward, Green Algae Strategy

The Integrated Algae Energy System (IAES) (explained in detail in chapter 15) would

make use of this left over dry matter to give to the fish aquaculture farm which will

generate food and with the waste from the production of fillets produce another bio-diesel

+ glycerine as a valued by product.

7. CO2 ABATEMENT AND CLIMATE CHANGE MITIGATION

Besides the sun and water the other two fundamental requirements for algae production are

CO2 and waste water. The CO2 allows the algae to thrive whereas the waste water carries

all the nutrients available for the algae cells. The CO2 can be taken from power stations or

from other emitters like cement making facilities.

7 Edwards Mark, Green Algae Strategy Tempe, Arizona; Edwards, 2008

16

The process for algae to absorb CO2 is called bio-fixation; bio-fixation is particularly

advanced in algae because of their cell structure. Most of the other plants (particularly land

plants) are not good at this and are only capable of fixing about 1-2% of the energy they

receive from the sun to allow the photosynthesis process to take place. Algae due to this

incredible capacity to fix CO2 can grow faster and can almost double their weight in a day

(under optimum conditions even triple). Furthermore this process of exponential growth

can continue forever8. It may very well be possible that storing CO2 in algae cells can be a

cheaper way at reducing carbon dioxide emissions compared to other methods like storing

it in tanks underground or underwater.

Algae culture can mitigate Climate Change very effectively; this is because it captures the

CO2 and stores it in the plant cell. Now it is true that when the algae dies it will return that

CO2 into the atmosphere, however if we turn some of that carbon fixed into the cell into oil

then the process takes a different fold. One tonne of algae can sequester almost 2 tonnes of

CO2. Some strains of algae have half their weight in lipids and are more productive at

producing oil than conventional land plants covering the same area. For example with the

same land use algae can produce 88 times more oil than soy beans.

Soya – 446 liters yield from 1 hectare of land (mainly used in the US)

Rapeseed – 1190 liters yield from 1 hectare of land (mainly used in EU)9

Micro algae – Up to 39 500 liters yield from 1 hectare of land

Figure 2. Yields per hectare of microalgae compared to other land based feedstock

8 Goodall Chris, The technologies to save the planet London, UK; Goodall, 2008 9 http://journeytoforever.org/biodiesel_yield.html

0

5000

10000

15000

20000

25000

30000

35000

40000

Lit

res o

f o

il p

rod

uced

per

hecta

re

Soya Rapessed (oil) Micro Algae

Oil yield from algae compared to soya and rapeseed

33 times more than

88 times more 39 500

PBR*

1190 446

1190 446

PBR* photo bio-reactor

17

Burning the algae diesel in an engine may seem to emitting carbon dioxide and indeed that

is what is happening, however the car that runs it will be essentially carbon neutral,

because the gas that has been emitted will have been taken (sequestered) previously. In

terms of net affect it would be the same as storing the CO2 in tanks underground i.e. there

are zero CO2 emissions into the atmosphere. The CO2 is either bubbled through the ponds

or bio-reactors or it is fed through the systems from tanks.

8. WASTE WATER FOR ALGAE GROWTH

Nutrients are very important to the growth and reproduction of the algae cell, in particular

Nitrogen and Phosphorous, N and P. These nutrients required by the algae cells can be

actually found in waste water, waste water in fact can act as a nutritional base for algae.

Waste water from human, animal and some industry can contain enough nutrients for algae

growth. The algae, provides the waste with oxygen and therefore lowers the biological

oxygen demand (BOD) of the waste itself. These wastes however, need to be collected in

very large amounts and above all need to be liquefied.

Human waste (please keep in mind that this is region specific due to dietary habits of

various populations) contains roughly 3kg N per capita/per year and is equal to a potential

30kg of algal biomass per capita year. This would mean that for a 100 tonne/ha/year

productivity we would require 3,000 people (3,000 multiplied by 30kg = roughly

100tonne), based on the fact that N levels in the biomass would beat 9%. Standard sewage

treatment ponds reduce only the BOD but do not remove nutrients from the waste.

Similar achievements can be obtained from pig waste and cow manure, however there are

considerably less pigs and cows in the areas where algae farms could be established, but

the N levels in their waste is much higher than humans. Pigs in actual fact excrete 16kg of

N per year and cows 70kg of N per year.

A typical 10 hectare algae pond therefore would have to collect waste from a population of

about 30,000 people, 5,000 pigs or 1,200 cows. Both pig and cow dairy slush although

more manageable, would be much harder to collect unless, the algae pond was in proximity

to a farming area in which case the sludge would be easier to collect. Odours would

however be a major concern.

18

Other wastes from industry, food processing or from aquaculture could also be considered

as a source of nutrient for the algae. Aquaculture in particular produces large amounts of

waste, the waste from the fish (catfish, shrimp etc) can be nutrients for the algae. Please

see Chapter 16 (Integrated Aquaculture Energy System) for more details.

Due to the large amounts of waste water required to make the algae system viable, they

would need to be located in urban areas with vast populations. Highly populated areas with

large amounts of waste are found in India, China, Indonesia and Nigeria. These areas

would be favourites for a number of reasons. For a start the climates are ideal for algae

reproduction due to the intense sunlight and, secondly the industrialisation that is taking

place in India, China and Indonesia would provide sufficient CO2 mitigating climate

change.

9. OVERALL CHALLENGES

Although a lot of progress has been made with algae-culture the economics of the systems

need some careful assessment. To this day no company has been able to fully

commercialise algae oil. Many patents have been distributed in the US with regards to

algae-culture, yet very few companies have been able to scale up from pilot/test projects to

demonstrative projects.

Companies like Solazyme for example have been awarded large contracts from the US

Navy to produce algae fuel for testing, while Sapphire Energy have produced a hybrid

vehicle that has crossed the US from San Francisco to the East Coast. The vehicle will

require under 100 litres of fuel. However the biggest commercial breakthrough comes from

Exxon who are partnering with Synthetic Genomics and investing $600 million in

producing liquid transportation fuels from algae.

At the March 2009 World Algae Summit held in San Francisco, it was said that the

technology is in place for commercialisation to happen the problem is that one company

holds the ideal technology for harvesting, another for oil and lipid extraction, and yet

another for growth. If these technologies could be put together the puzzle would be solved,

however the patent laws and regulations do not allow for this to happen and so scale up

and commercialisation will occur perhaps in 3-4 years.

Other key points that emerged from the Summit were the following

19

• Productivity:

Certain companies claim to have algae producing around 15,000 gallons of bio-fuel

per acre per year. If one acre equals roughly 0.4 hectares or 4000m2, and 1 gallon is

equal to 4.55 litres this means that they are claiming to be producing 68,250 litres

for every hectare of land. This is a very unlikely figure as some experts suggest and

a more realistic figure and a current peak productivity rate is about 10,000 litres per

hectare per year (hec/year). Perhaps by using some genetically modified strains we

could reach a productivity of 3 or 4 times that amount. Genetically modified algae

could be the answer to increasing lipid yields in algae strains, we must be careful

though to not allow the algae to enter the animal/human food chain in any way, as

this may have repercussions on human health.

• Research and Development

A lot more R&D is required in all fields that involve algae from phycology (study

of algae) to bio-chemistry science. Scale ups should be done as quickly as possible

to evaluate the potential of mass algae production and conversion to bio-fuel. More

investments should be encouraged by realistically publicising the work and

progress done in the years. Perhaps a patent pool could be established where all the

patents are put in and managed by one organization.

• Water

Although water in algae systems can be continuously recycled, science, researchers

and business leaders were very concerned about the loss of water due to

evaporation. In small scale projects alone evaporation can be millions of litres a

day. Closed photo bio-reactor systems of course would avoid any sort of

evaporation to occur, however the costs for these machines is still too high, and

unjustified for the time being. Open pond systems or open raceway ponds as they

are sometimes called seem to hold the promise therefore, where any kind of water

can be used. If salt water is used there is then the issue of what to do with the

accumulated salt once the biomass has been extracted.

One major concern is desert areas of developing countries where algae farms could

be established. The prolonged periods of heat could be an advantage to algae

growth, but evaporation could be a problem. The solution could be to supply them

with the latest photo bio-reactor technology (PBR), to avoid evaporation, but costs

20

could be too high for these low income countries.

• Co-production

The general consensus at the Summit was that bio-fuel can only be economically

viable NOW if it is produced in a co-production with other products. The solution

may be to begin by producing something else initially and not bio-fuel. Only when

profits can be seen the system can go on to produce bio-fuel, and even then the by-

products should always be produced. Some of the income for algae farms can come

from various sources:

• CO2 mitigation

• waste water

• medicinal uses of algae

• neutraceuticals

• plastics

• food for animals

• production of bio-gas from biomass

There is a clear and apparent potential in algae fuel production. The world requires more

research and development in the field in order to properly assess the potential of

production at large scale. Therefore large scale plants are needed. Investors are being more

careful than perhaps they were when the agro-fuel business began to boom, lots of

investments brought about many losses as a consequence to agro-fuels being produced in

an un-sustainable way.

10. COSTS AND REVENUES OF ALGAL CULTURE

Ultimately the economic viability of alage-based biofuels, will depend on economics and

the price of standard fossil fuel oil. As crude oil prices increase, algae oil will then become

more commercially viable.

Costs and revenues of algal culture vary depending on the technology used. Closed pond

systems are quite similar in costs and revenues with the exception that they are covered.

The initial cost of a pond cover may result as being high, however, the revenues may

exceed as there is less probability of contamination and yields can be higher due to a

warmer internal climate.

21

Costs of photo bio-reactors are not easy to come by and can range from $100,000 upwards.

Their yields are of course much higher, and there is no probability of contamination

however more skilled staff is required for operating the plant.

Performance parameters of open pond systems are the following:

• Availability or transport of waste water to the ponds

• Availability or transport of flue gas to the ponds

• Land price: costs/suitability/availability

• Algae productivity

• Harvesting

• Processing

• Valued products: Biofuels, GHG abatement, reclaimed water, fertilizers and other

co-products.

Revenues from algae farms can come from:

• 180 tonne of algae per hectare per year

• Reclaimed water, fertilizers or high value products,

• Fuel produced can vary from $100 to $180 per tonne of algae (ToA),

• Avoided CO2 could also be a revenue with a maximum income of about $80 per

tonne of CO2 (1 tonne of micro-algae can sequester 1.8 tonnes of CO2 )

• Total revenues using therefore high value products OR reclaimed water and

fertilizer can range from $100 to about $700 again per ToA.

Costs include:

• Land costs roughly at $80 per ToA,

• Pond investments range from $240 to $380 per ToA

• Operation costs $75 to $150 per ToA

• Transport of CO2 around $60 ToA

• Total costs range from about $350 to a worse case scenario of $-600

Costs therefore include capital costs of ponds, land, (harvesting, processing, water supply,

infrastructure) and operating costs. With flat land and clay soils a raceway mixed pond can

have a capital cost of around US$ 60,000 per hectare (1996 US $, Benemann and Oswald,

22

1996). This includes all the equipment necessary, paddle wheel, piping, harvesting,

earthworks etc.

10.1. ECONOMIC VIABILITY

The economics of microalgae is a very delicate issue and there are many factors to be taken

into consideration. Although, it is quite obvious that for the time being fuel only algae

production is not economically feasible. Additional revenues and products are required

reclaiming waster water, CO2 and other high value products are just for the time being

sufficient to justify mass algae production.

However, this is not to say that the future may not see algae as the main liquid fuel source.

As oil prices go up and R&D advances in algae production it is bound to happen, and the

US is making huge steps in commercializing the fuel.

11. ALGAE COMPANIES AND NEWS

Breakthroughs in the algae industry are happening almost every week, and most of the

improvements and innovations come from the private sector. The US is leading the science

and technology race towards commercialising algae oil, whereas the EU is dragging behind

due to a late bloom. Although the Obama Administration is a lot more forward thinking

and grants are being given for algae research, these grants are very difficult to obtain.

Private firms therefore are the ones that are coming up with the best solutions and

innovative ideas about strain selection, oil extraction or efficient and inexpensive cell wall

rupture. In total in the US there are about 50 companies and 20 universities working on

algae as a fuel source. The numbers are considerably less in the EU.

11.1. USA

Algae Floating Systems, Inc - is the company that develops and deploys algae-based

carbon capture and sequestration systems for power plants and industrial facilities that

profitably convert CO2 and solar energy into renewable fuels and other valuable products.

In the long term the company plans to deploy AFS Biofarms™ offshore to maximize the

efficiency, cost and footprint of the systems.

23

Algae Floating Systems, Inc. (AFS) recently announced that it has commissioned a new

12,000 liter working demonstration unit in the San Francisco Bay Area. This improved

generation 6 demonstration facility is a gateway for AFS to the next step of building a

commercial-scale facility.

The following are parameters of the systems:

• annual production capacity – 10 million US gallons of algal oil and 100,000

tonnes of algal cake;

• capital cost – USD35 million;

• footprint – 500 acres;

• useful life – 12 years;

• volume – 500 million liters (water is continuously recycled);

• annual amount of sequestered carbon dioxide (CO2) – 250,000 tonnes;

• annual amount of produced and collected oxygen (O2) – over 100,000

tonnes.

Furthermore the system requires low operating expenses for harvesting and oil extraction,

and algal oil production cost, which includes capital as well as operating expenses, on a

commercial scale will be US$2 per gallon (US$80 per barrel or US$600 per tonne)

ExxonMobil and Synthetic Genomics, Inc (SGI) – announced in July that they will join

forces in an effort to produce large scale quantities of algae oil. ExxonMobil is expected to

spend about $600 million in the program, of which $300 million would be the costs

involved in setting up the plant and the remaining $300 million would go to SGI.

ExxonMobil say they have weighed out all the pros and cons of algae oil production and

have decided to go large scale.

Solazyme, Inc – Is an algae company in South San Francisco. It produces renewable clean

fuels, chemicals and food products from algal technology. The CEO, Jonathan Wolfson,

said that since their production of the world’s first algae derived jet fuel in September

2008, they have been focusing their research on developing a process to commercialise

production and cut costs. Solazyme has projected reaching 100 Mgy by 2012 or 2013.

The US Navy has awarded a contract for 1500 gallons of algae jet fuel to Solazyme. This

is in addition to previous order of 20,000 gallons which was used for testing and

certification. Solazyme will produce 1,500 of algae derived renewable F-76 navy distillate

fuel to be used by navy ships of the US Navy.

24

Solix Biofuels – is based in Fort Collins, Colorado. They were one of the first companies

to explore algae and they claim that their technology is “low cost – adaptive – scalable”10

Solix Biofuels build unique photo bio-reactors, that maximize the potential of algae and

can produce up to 7 times the amount of crude than open pond systems.

Desert Sweet Biofuels – Claim to have found the synergy between algae aquaculture,

agriculture and existing technologies that will once combined combat climate change

through mitigation of CO2 as well as help the US dependence on foreign oil by producing

liquid transportation fuels. The system will also produce by-products in the form of food

and fodder, electricity and BioChar (soil amendment which will increase soil fertility.

University of Nevada - According to Nevada News, in January 2009 the University had

the first real-world, demonstration-scale project for turning algae into bio-fuel, and it was

successfully completed the initial stage of research at the University of Nevada, Reno.

Nevada News, goes on to say that the University is on track to show that the process of

turning algae in fuel is economically and commercially viable. Furthermore they are

managing to harvest their crop outdoors (therefore in open ponds) at temperatures that are

well below the recommended average temperature for algae harvesting of >15 degrees

Celsius.

The University researchers are working together with industry partners Enegis, LLC and

Bebout and Associates.

The University’s 19,000 litre ponds are being used for the pilot in Reno and thus far they

have produced several hundred gallons of concentrated algal slurry. The algae are thriving

said the researchers at Reno and the cells grow out and reach a stationary phase within 2 to

3 weeks. The algae grew despite the night temperatures dropping to -3/4 degrees Celsius.

Their goal said Professor John Cushman, Department of Biochemistry & Molecular

Biology is to develop a hardy variety of salt-loving algae as alternative bio-fuel feedstock,

which produces more than half its weight in oil – as well as developing a practical process

to grow, concentrate and harvest the algae. The alga variety harvested was selected and

cultured by the University, and future varieties will be developed by the University.

Enegis, LLC and Bebout and Associates, are very excited about their investments and

expect to see possible financial returns and benefits coming their way soon.

10 http://www.solixbiofuels.com/content/technology

25

OriginOil - Before setting out to develop a new technology to maximize oil yields from

alage and to lower energy use in production phase, OriginOil set itself 3 primary

challenges:

1. Algae does not like agitation of water, one of the challenges is how to

introduce CO2 and nutrients into the algae without disruption or over-

aerating the algae.

2. Light distribution needs to be evenly distributed and cost-effective.

3. Algae organisms have a tough cell wall, this cell wall needs to be cracked

with an energy inexpensive process – the challenge is to maximize oil yield

by cracking as many algae cell walls as possible with the least energy

possible.

Recently OriginOil have announced the successful automation of the Helix Bio-

Reactor system. This is a system that optimizes algae growth and makes commercialization

of algae oil at large scale possible. The system is a complete algae growth and extraction

system, and it uses an array of proprietary technologies, including Quantum FracturingTM

and the Helix BioReactorTM , to enable a continuous oil-production industry.

Sapphire Energy – Were perhaps the first company to ever receive a donation to produce

algae fuel. Bill Gates in 2008 through the Cascade Investments and Rockefeller

Foundation gave Sapphire Energy $100 million to build a bio-crude demonstration project

in Las Cruces, California. Consequently Sapphire Energy produced the algae fuel which in

part (5%) powered a twin jet fuel Continental Airline biofuel test flight. More recently

Sapphire Energy produced a hybrid car which crossed the US from west to east coast

running exclusively on algae fuel. Sapphire Energy has projected that it will reach 1Mgy in

production in 2011 and 100Mgy by 2018

Petrosun joint venture with China - PetroSun (Arizona) and Shanghai Jun Ya Yan

(China) have set up a joint venture to produce alage fuel at commercial scale in China. The

chinese company will invest $40 million for constructing the facility and take a 50% stake

in the project. The technology used will be photo bio-reactors. While Petrosun have not yet

stated where their Chinese algae farm will be located back in Arizona they are building a

1,000 acres of ponds in its Rio Hondo location. The farm will produce 4.4 million gallons

of algae oil and 110 million pounds of biomass per year.

26

AlgaeFuel – is a company based in Concord, CA, USA. AlgaFuel have an ongoing

research team to discover new strains of high oil species to add to the already long list. The

company also builds photo bio-reactors (PBR) and open raceway ponds. Their PBR’s

however are not intended for mass production but for laboratory use. The AIPS (Advanced

Integrated Pond System) uses the latest techniques in open pond algae oil extraction and

uses waste water as a nutritional supplement to the algae

Cellana – is Shell’s answer to their efforts in finding sustainable non food based biofuels.

It is based on the Big Island in Hawaii and construction began on the plant in 2008.

Cellana will primarily grown non genetically modified microalgae indigenous to the island

of Hawaii and approved by the Hawaii Department of Agriculture.

Live Fuels – As we have seen one of the biggest challenges in algae culture is extracting

the fuel from the cells. It is not only energy intensive but also quite expensive to achieve.

LiveFuels are growing the algae in 2 hectare ponds with small fish, who are doing all the

harvesting. The fish eat the algae fatten up and are harvested for fish oil and animal feed.

The company is testing different varieties of fish to improve results.

Algae at Work (A2BE) - in Boulder, Colorado are using the concept of sequestering CO2

to harvest biofuels, fertilizers and food through the use of algae. Their main focus is

capturing CO2 and not growing algae for fuel. Algae culture in this sense is seen as a by-

product.

Neptune Industries. Inc. – in Florida, have designed a system whereby they are using fish

waste from an integrated system to fertilize and give nutrients to the algae. This cuts down

the cost for fertilizing the algae and increases productivity and paves the way to better

commercialization.

Other US companies have projected future scenarios like the following:

Biofields - has projected production in Mexico of 250 Mgy by 2013 based on the Algenol

process.

PetroAlgae - has indicated it expects to reach commercial scale production (below

100Mgy) in 2011.

27

Aurora Biofuels - has projected the development of “$1.30 at the gate” fuel by 2013

11.2. REST OF THE WORLD

The 1st European Algae Biomass Association (EABA) Conference and General Assembly

meeting of the Association was held in Florence, Italy, June 3-4th, 2009.

The outlook was not very optimistic and general indicative timeframes claim that it will

take 10-15 years to commercilize algae in Europe. The Executive Director Mr. Raffaello

Garofalo pointed out that this is in fact indicative and that there is still a lot of research to

be done. He also went on to say that at present, producing bio-diesel from algae costs 10 to

30 times the cost of making bio-diesel from traditional feedstocks. By-products it seems

are going to be what makes algae oil production viable in the shorter term. Those highly

valued products will make the price drop and make algae oil competitive with other

feedstocks.

Mr. Garofalo also added that the new association has 54 members representing science and

industry and aims to be a platform for creating full algae-based production chain, from

biofuels to animal feed to nutrients.

This outlook strongly contrasts with the more positive scenario and assessment made by

some US companies who claim they can commercialize in 3 to 4 years.

Israel – A join venture between the Israeli company Seambiotic and the Seattle based

company Inventure Chemical In June 2008, is to use CO2 emissions-fed algae to make

ethanol and bio-diesel at a biofuel plant in Ashkelon, Israel.

Spain – Bio Fuel System is a wholly owned Spanish company which uses the method of

breeding plankton to produce clean fuel. It was founded in 2006 and is in close link with

engineers and scientists from the University of Alicante. Bio Fuel System claim to have a

bioconversion system that is 400 times more productive than any other system.

The Netherlands - AlgaeLink, in Roosendaal, is a producer of tubular PBR’s. The

produce and manufacture bio-diesel, bio-ethanol, bio-gas, bio-oil, and jet fuel, animal feed

and fodder, as well as pharmaceutical products food supplements, proteins and omega oils.

28

Other important European Companies working with algae to fuel are listed in

Chapter 17.3 of this paper

Argentina – A algae bio-diesel company located in the Federal Capital of Argentina

Australia - Biomax bio-diesel in Victoria, Australia are producing and distributing bio-

diesel made from algal oil and recycled cooking oil.

New Zealand - Aquaflow Bionomic Corporation (ABC). Boeing and Air New Zealand

announced a joint project with Aquaflow Bionomic to develop algae jet fuel.

12. FISH-WASTE AND AQUACULTURE FARMS

Generally speaking it is a known fact that aquaculture farms produce waste. Waste in most

cases that cannot be recuperated in any way, due to the nature of the waste itself. Amongst

the debris there is of course the fish carcass itself.

In most cases depending on the country where the farm is located there are strict standards

and handling requirements to prevent effects on the environment from the waste. The

waste is generally handled through a Waste Management Plan (WMP). The WMP must do

the following things:

• Identify the source of each type of waste,

• Provide a detailed description of how that waste will be collected,

• Contained,

• Transported,

• And disposed of.

Fish waste (in particular the carcass after fillets have been produced) in aquaculture farms

can be a primary source of income to produce by products such as gelatine from the skin,

fishmeal from the bones and other solid matter and fish oil from the liquid extracted. The

fish oil can be cleaned refined and made into a usable bio-diesel which requires little

processing to produce. Standard diesel engines can utilise the diesel without any

modification to the engine itself.

29

13. CONVERTING FISH WASTE FROM THE FISHING INDUSTRY TO BIO-DIESEL

13.1. INTRODUCTION:

The use of animal fat to produce bio-diesel is not a new technology, however the

adaptability of this technology to aquatic resources has only attracted public interest

recently. The stress on land based products to produce biofuels is becoming quite

significant and will be even more so in years to come. Therefore looking at aquatic

resources for energy production makes not only ecological sense but economic sense too.

The conversion process is simple after the fish oil has been produced from the left over

waste of the fishing industry the oil is cleaned purified and with the addition of some

caustic soda and methanol the bio-diesel is produced. 1kg of fish waste can produce up to

1.13lts of bio-diesel.

13.2. BIO-DIESEL PRODUCTION:

The bio-diesel produced from fish waste would be a non-toxic and fully biodegradable

renewable fuel that can easily be adapted without any modification to current diesel

engines. Bio-diesel is particularly good for the environment as opposed to standard fuel or

diesel because it reduces the air toxins, CO2, particulates, black smoke and other

hydrocarbons. The fish oil is similar to a vegetable oil or animal oil and it reacts with an

alcohol (methanol), the catalyst used is generally caustic soda. This produces a pure bio-

diesel or B100 (100% bio-diesel) with a valued by product glycerin. Glycerin is an

important by-product, and is currently further being enhanced and could become a new

source of income for bio-diesel producers. It is a colour-less, odorless, slimy liquid which

is used for pharmaceutical, food and cosmetic purposes. Up to now market conditions have

impeded this valuable by product to be sold commercially, however, world wide

researchers and experts are looking at ways to enhance the product and find more ways to

utilise it in order to make it economically and commercially viable.

Some fish oils contain essential fatty acids like omega 3, which is a highly valued

commodity especially in the pharmaceutical industry. Therefore care has to be taken on

which types of fish is used when producing the fish oil. Below you will find a table of fish

species and their content of Omega 3 fatty acids per 100 gr. One of the lowest in Omega 3

content but high in oil is catfish.

30

One other note of care is the acid content of the oil extracted. For example, salmon oil is

high in acid and this acid needs to be removed. Therefore an additional step in removing

this acid is required. Sulfuric acid (a reducing agent) is added to reduce the content of the

fish oil acid. Once this has been done the process of trans-etherification can begin.

Table 3: Fish species and their Omega 3 fatty acid content

Fish species Omega 3 (EPA+DHA) content (g) per 100 g of fish

Tuna (fresh) 0.28-1.51

Atlantic salmon 1.28-2.15

Mackerel 0.4-1.85

Atlantic herring 2.01

Rainbow trout 1.15

Sardines 1.15-2

Halibut 0.47-1.18

Tuna (canned) 0.31

Cod 0.28

Haddock 0.24

Catfish 0.18

Flounder or sole 0.4

Oyster 0.44

Shrimp 0.32

Scallop 0.2

Cod liver oil capsule 0.19

Omacor (Pronova) 0.85

Source: adapted from the guidelines of the American Heart Association.

13.3. TECHNOLOGY AND PLANTS:

The technology used in the production of bio-diesel from fish waste is adaptable and

transferable in many other parts of the world including developing regions in Africa, Asia

and Latin America as well as small fishing communities and small islands who rely heavily

on oil imports. It can provide labor, and produce local energy free from green house gases

31

and emissions. With little investment in already existing fishing communities local energy

can be produced at very little cost.

Currently several large fish waste to bio-diesel plants exist Aquafinca in Honduras,

Finland’s VTT Technical Research Center, the largest applied research organization in

Northern Europe together with its partner Hiep Thanh Seafood JSC in Viet Nam have

launched ENERFISH which will run as an experimental project until 2011, ENERFISH

began bio-diesel production from fish waste (cat fish) in May 2009, and plans to produce

120,000 litres of bio-diesel a day.

An initial feasibility study was conducted by the Sustainable Community Enterprises in

Vancouver, Canada in 2007. the SCE was awarded a grant to study the production of fish

oil into bio-diesel. In a previous study conducted in 2005 however, it was concluded that it

was not economically viable. The 2007 demonstrated 2 options for bio-diesel production

one was a self-built base trans-esterification system and the other a fully automated

acid/base two stage model with water wash. The latter was almost 3 times more expensive

to purchase but benefits were higher. The feedstock would come from 2 different salmon

processing plants and the bio-diesel production plant would be located at a different area,

increasing therefore costs of production.

The study concluded and determined a price of $1.10 per litre of bio-diesel. The self made

system produced 250,000 litres of bio-diesel per year and payback time is 4.2 years

whereas the other system produced about 227,100 litres and payback time is 7.7 years.

Transport of the waste was an important contributing factor to the overall cost, so the cost

would diminish if the processing facility would be located at one of the processing

companies

In 2007 The National Technological Centre for the Canning of Fish Products in Spain

(Anfaco-Cecopesca), was looking into ways in which fish fat which is found in waste

water generated by the canning industry can be used for the manufacture of bio-diesel. A

regional government grant of EUR 111 119 (US$ 152 134.45) was given to the project

which was being carried out in Galicia. At present, these fats are not used for any industrial

purpose, but they could have potential value, especially as they can be easily separated

from waste water using physical methods. The research is in its preliminary phase.

AQUAFINCA – San Pedro Sula, Honduras

Aquafinca is a tilapia farm situated about 200km from the administrative capital of

32

Honduras, San Pedro Sula. The farm produces roughly 100 tonnes of tilapia a day of which

about half is waste i.e. offal, bones, skin/scales, etc.

Aquafinca is fully sustainable with the ability to be energy self-sufficient. It can produce

energy for the whole company, providing imports of methanol from the USA arrive

regularly. The fish scales/skin which is a separate by-product is sold to China for the

production of gelatin.

Aquafinca runs on a total of 10 generators which provide power for the whole plant plus

electricity for housing, there are 50 people employed on the plant and work on 3 shifts

cycles. The plant uses up 1368kw a day and produces 11,000 litres of fish oil. From that

6000 litres of bio-diesel are made, glycerine (valuable by-product), and roughly 10 tonnes

of fishmeal.

Of the 100 tonne catch a day roughly 54 tonnes are waste this includes heads, bones, tail

etc which goes to make the fish oil and fishmeal. Of that 54 tonnes

65% of the total biomass is water = 35.1 tonnes

20% is solid biomass which goes into making fishmeal = 10.8 tonnes

15% is made into fish oil = 8.1 tonnes, roughly 5 tonnes of these is converted into bio-

diesel and the rest is sold as pure fish oil. 5 tonnes which equals roughly 5000 litres + 20%

added methanol comes to a total of 6000 litres.

The total investment for building the fish waste to bio-diesel plant was about $100,000.

The CEO of the company decided together with engineers to build the plant themselves

saving on installation costs.

A diagram below shows the bio-diesel schematic processing system, what each step does,

this is followed by photographs of Aquafinca taken on location in November 2008.

33

Figure 3: Bio-diesel schematic processing system

34

3

Photo 3: Cooker at 100

o C moves very slowly takes about 4mins

Photo 1: Fish waste as it arrives at the bio-diesel plant

Pic 2: Fish waste includes head, bones fins, tail. Skin is removed, dried and sold separately as a valued by-product

Cooker

35

Photo 4: Expeller: Separates liquid from biomass

The liquid that falls from the expeller contains abut 54% water, 4% solids and 42% oil. The biomass goes to fishmeal production and takes a different direction. At this point the liquid that falls to the bottom shown above has to go through a cleansing clarification process to remove and separate the 3 products. It goes to a “pre-clarificator”.

Photo 5 “Pre-clarificator”

Oil rises

Water biomass sink

Liquid being squeezed out and solid biomass remains in the prensa (expeller)

36

The pre-clarificator separates the oil from the water and from the biomass (solid) Photo 6: The liquid is now ready to go to the fish oil production plant.

Vat 1 raises the oil at an ideal temperature and basically acts as a heater.

Vat 2 is the reactor, and is the vat that separates the glycerine from the oil (glycerine is the

by-product of the process) (however all particles are separated but mixed). At this point

the methanol (about 20%) is added and so to is caustic soda (catalyst) to assist the

separation process and it all goes to the decanter 1(vat 3), where the oil in the vat is

distinctly separated from the glycerine.

Photo 7: Final product after decanter 1 (Vat 3)

Vat 2

Vat 1

Vat 4 Decanter 2

Vat 3 Decanter 1

37

Photo 8: Cleaned and purified oil to the left and un-cleaned and dirty (containing glycerine in bottom) oil on the right.

The oil then goes through a first purifying process, and oil is separated once more from impurities.

In vat 4 (decanter 2) below the oil already separated from the glycerine once again goes

through a purifying process, where it is completely separated from the impurities and

cleaned.

Photo 9: Washing of the bio-diesel and further purification

Vat 4 Decanter 2

Filter

Washing and further purification

38

Photo 10: Filter final stage before entering the storage and pumping filling stations. The final stages of the process are the washing of the bio-diesel with water vapour at 95oC,

and then the drying process to dry the bio-diesel from the water vapour used for cleaning in

the previous stage. The bio-diesel is purified once again and filtered.

Photo 11: The bio-diesel is checked for quality control

39

Photo 12: After quality control the bio-diesel is stored in these green tanks ready for distribution Photo 13: From the green tank above it goes directly to distribution in the eternal pump.

40

14. BUILDING A FISH WASTE TO BIO-DIESEL PLANT:

14.1. OBJECTIVES AND PROJECT IMPLEMENTATION:

The main objective of a plant is to produce bio-diesel from fish waste as well as its valued

by-product glycerin. Depending on the fish waste available in the area a rough calculation

can be made on how much bio-diesel can be produced under optimal conditions. Specific

to tilapia and Aquafinca they are able to use about 54% of the fish as waste and roughly

15% of that can be “squeezed” out as fish oil. Conditions and results may vary according

to the fish used and waste produced.

In order to fulfill the objectives the following is required:

• Suitable location needs to be found to set up the bio-diesel plant. A location with

easy and simple access to fish waste would be ideal to minimize costs of transport

and in order to lower the carbon footprint of the plant due to emissions from

transportation. An environmental impact assessment would have to be made on the

chosen location, taking into consideration the whole plant cycle.

• Abundant waste should be available, either near a fishing port or inside or close to a

fish filleting processing aquaculture farm.

• Easy access to methanol to ensure continuous production of the bio-diesel.

Aquafinca purchase their methanol from the US and had problems when

availability became scarce. A good source of methanol and caustic soda and other

materials is of high importance.

• A market for glycerin in order to ensure quick income from the production and the

sale of the by-product.

• Human resources – a fulltime project/plant manager to overlook the production and

depending on availability of raw material and production 8 – 10 people working on

the plant.

• Storage facilities for the fish oil, the methanol and a storage or pumping station for

the final product.

41

INPUTS:

Fish waste, methanol, caustic soda, sulfuric acid (if required).

OUTPUTS:

Bio-diesel, glycerin, fishmeal, water (with nutrients) which can be recycled,

14.2. ENVIRONMENTAL CONCERNS:

Some GHG emissions could come from the transport of the fish waste to the processing

plant but if that processing plant was nearby that would not be a problem or if the

lorry/truck transporting the waste was using a low carbon fuel or the bio-diesel produced

from the plant, again this would lower emissions.

There is strong potential for this technology to be transferred to other parts of the

developing world, particularly in small island communities that rely on fossil fuel oil for

their liquid fuels. Depending on the amounts of fish catch the waste can be transformed

into fish oil and thence into bio-diesel. The energy produced would be free from GHG’s.

The effects of global warming can already be felt, from sea level rising to changed patterns

of agriculture, extreme weather patterns and climate change. Such a project would fall

under mitigation of global warming because it involves directly taking action to reduce

greenhouse gas emissions. It would also contribute to the Kyoto Protocol initiative to

reduce GHG emissions.

14.3. CONCLUDING REMARKS:

Large scale projects like the ones mentioned have been running quite successfully

throughout the world particularly in developing countries. The process to extract the fish

oil from the raw left over materials and then converting that oil to bio-diesel is energy

intensive, however, some of the bio-diesel produced can be used to run the machinery, this

would make the process self-sustainable and totally greenhouse gas emission free.

Fishing ports could se up cooperatives to collect all the fish waste and produce the fish oil,

fishmeal and bio-diesel. This would mean the construction of only one big plant instead of

many smaller ones, reducing costs and increasing quantity and potential.

42

15. COSTS AND INVESTMENTS

One of the biggest costs incurred in fish waste to bio-diesel facilities are the costs for

transport of the raw material i.e. fish waste. This is why the facility should be located as

close as possible to the aquaculture farm. Not only will distance incur on costs but it will

have a negative impact on the overall sustainability of the plant, and the overall

environmental impact. The energy balance and CO2 emissions would be altered.

For cost purposes assuming the plants are far away from each other one would have to

consider:

• Fuel costs,

• Driving time,

• Truck costs,

• Labour costs,

Depending on the distance to drive and the fuel consumption of the vehicle and fuel costs

and labour costs this could be quite an expensive venture.

There are 2 options for building a fish waste to bio-diesel plant.

• A self built option which would cost around $130,000 US (similar to the one built

by Aquafinca) chapter 13.3.

• And a ready bought option around $350,000 US,

Other expenses like pre-treatment (if required) and operating costs would vary from $7,000

US to around $17,000 US, depending on the plant chosen.11 Human resources costs would

also have to be considered, this would depend on location and labour costs.

Option 1 – Self built system using Magnasol:

In total the system would be capable of processing about 250,000 litres of bio-diesel per

year, with a feedstock of fish oil with low free fatty acids and low water content. The plant

would take up about roughly 400m2 and employ a part-time worker of about 24 hours a

week. The total costs would be $130,000 plus $7,000 for the infrastructure and other costs.

11 Sustainable Communities Enterprise A feasibility study for fish oil bio-diesel production for Clayoquot

Biosphere Trust. pp. 6-9

43

• Benefits could include the fact that the system can be expanded at any time, and

that there are no water treatment facility capital and operational costs. Also quality

control can be improved.

• Drawbacks could be that there is no automation therefore all labour is intensive -

difficulties in accessing a Magnasol filtration system – large amount of space

needed – limited feedstock.

Option 2 – Fully automated acid/base two stage model with water wash:

One of the manufacturers of these systems is Pacific Bio-diesel. They claim they can

produce around 500 litres of diesel every hour, and can accept high or low free fatty acids.

Space requirements are less than the home made unit and costs involved are $350,000 for

production and investements, plus $17,000 in feedstock and treatment and handling.

• Benefits – are many and include: low labour costs, low space usage (could be built

inside a large shipping container), flexibility with feedstocks, support from

manufacturer, module system hence easy to expand, leases can be taken out to

purchase.

• Drawbacks – Slow in production phase, waste water will have to be treated and no

methanol recovery.

44

PRODUCTION COST ASSUMPTIONS FOR OPTIONS 1 & 2 (2006 prices)

Extracted from. “Sustainable Communities Enterprise A feasibility study for fish oil bio-diesel

production”

Box 1.

OPTION 1: Self-built system production costs at 250,000 litres per year

Operational Perspective

Capacity 250,000 L/year or 5,000 L/week (excluding 2 weeks holidays). Yield 85% volume of fish oil is converted into bio-diesel. Feedstock $0.15/L using a used, leased truck and collection from Port Hardy reduction plant. Chemicals - Methanol at $1.06/L delivered in 1000 L totes, used at 20% of fish oil

- Catalyst assumed to be sodium hydroxide (KOH) at $4.53 per kg, used at 0.012 kg/L of fish oil; and Magnasol at $3.00/kg, used at 0.01 kg/L of oil.

Space 1200 ft2 at $13/ft2/year. Labour One operator working five 8 hour days per week at $15/hour (plus 13%

MERCS) or $678/week. Energy Estimated to be $0.03/L of bio-diesel produced with a 200% safety margin. Water No process water required. Solid waste 2.5% of fish oil volume is solid waste disposed of at $75/tonne. Liquid waste 0.1% of fish oil volume is liquid waste from vessel cleaning;

- Waste water disposal is estimated to cost $1.00/L; Quality Assumed no quality control costs. Glycerin Assumed glycerine was sold to wholesaler.

Box 2.

OPTION 2: A fully-automated acid / base two stage model with water wash

Operational Perspective

Capacity 227,100 L/year or 7,570 L/week (for 30 weeks a year) Yield 95% volume of fish oil is converted into bio-diesel. Feedstock $0.15/L using a used, leased truck and collection from Port Hardy reduction plant. Chemicals - Methanol at $1.06/L delivered in 1000 L totes, used at 20% of fish oil

volume - Catalyst assumed to be sodium hydroxide (KOH) at $4.53 per kg, used at

0.012 kg/L of fish oil; and - Magnasol at $3.00/kg, used at 0.01 kg/L of fish oil.

Space 1000 ft2 at $13/ft2/year. Labour One operator working three 8 hour days per week (for 30 weeks a year) at

$15/hour (plus 13% MERCS) or $406/week. Energy Estimated to be $0.03/L of bio-diesel produced with a 200% safety margin. Water No process water required. Solid waste 2.5% of fish oil volume is solid waste disposed of at $75/tonne. Liquid waste - 0.1% of fish oil volume is liquid waste from vessel cleaning;

- Waste water disposal is estimated to cost $1.00/L. Quality Assumed no quality control costs. Glycerin Assumed glycerine was sold to wholesaler.

45

For the option 1, the total production cost was $0.97 per litre of bio-diesel produced,

whereas for option 2, the total production cost was $ 0.89. If the bio-diesel was sold at a

price of $1.10 per litre (including $0.09 tax, assuming the biodisel was sold as a blend

under 50% bio-diesel to 50% diesel), the profit per litre (for the option 1 scenario) would

be $0.13. The yearly profit would be $32,500. Given a capital cost of $ 137,000 for option

1, the payback time would be 4.2 years. For scenario 2, the profit per litre would be $0.21

with a yearly profit of $47,691. Given a capital cost of $367,000, the payback time would

be 7.7 years.12

16. INTEGRATED SYSTEM ALGAE CULTURE + AQUACULTURE

The Integrated Aquaculture Energy System (IAES), is a system that incorporates 2

aquaculture systems. The algae system and a standard fish aquaculture farm system.

The diagram below clearly defines the steps in the system:

1. CO2 is sequestered from a nearby emitter,

2. It is fed to the algae,

3. From the dry algae we can extract (at current extraction rates) 20% oil,

4. The left over dry biomass (80%) rich in Omega3 and other nutrients is given to the

fish as feed.

5. The waste from the fish (fish scum can be given as algae for nutrients)

6. Fillets are produced

7. By-products are glycerine, fish-oil which can be sold as fish-oil or converted into

bio-diesel.

12 Sustainable Communities Enterprise A feasibility study for fish oil bio-diesel production for Clayoquot

Biosphere Trust. pp. 10-11

46

Figure 4: IAES – Integrated Aquaculture Energy System

With this Integrated Aquaculture Energy System, we are addressing issues such as, global

warming, CO2 sequestration, food security, oil independence and production, valuable by-

product production, and employment.

17. ADAPTABILITY OF AQUATIC BIOFUELS TO THE UNION OF THE MEDITERRANEAN

COUNTRIES:

The countries with a coastline onto the Mediterranean Sea (roughly between 45oN and

30oN), are suitable locations for algae farms, in particular in those countries south of the

Mediterranean that experience warmer climates and whose temperature do not go too much

below 15o C throughout the year. New technologies in algae harvesting have also made it

possible for such open pond farms to be located in slightly cooler climates by covering

them with special material making them behave in a similar was as a greenhouse, this can

certainly increase the latitude in which such farms can be built.

Many countries in the Mediterranean basin have a large potential for algae harvesting.

Some countries like Israel have being growing and harvesting algae for pharmaceutical

47

purposes for decades and recently have begun to produce different strains for fuel

production.

Particularly attractive are the southern countries that border the Mediterranean Sea which

have high temperatures and vast unused desert land, like Morocco, Algeria, Tunisia and

Egypt. Whereas countries like Libya, Cyprus and Turkey could also harvest algae on

marginal land. Although it may be true that some of these countries do not have abundant

water resources it is also just as true that algae do not require freshwater (they can grow

with recycled brackish or salty water). Furthermore these countries are developing

countries and could strongly benefit from such an industry. Algae farming can provide jobs

for locals and the transfer of technologies to developing countries can only be beneficial

for the country concerned.

Figure 5: Potential Mediterranean areas for algae culture

With the high temperatures in the Mediterranean region, the open or closed pond system

would probably be the most efficient and most suitable to grow the algae.

17.1. FACTORS TO BE CONSIDERED:

Some other important factors should be considered when finding a suitable location for

algae farming. Firstly as mentioned above algae thrive on CO2, therefore a good source of

CO2 should be identified before setting off on a project, whether the CO2 comes from a

factory or a cement manufacturer makes little difference. Secondly waste water is a good

48

nutrient for algae giving it not only extra CO2 but also other nutrients like Nitrogen and

Phosphorus.

CO2 emissions from cement manufacturing are produced as cement is calcined to produce

calcium oxide. Approximately 0.5 metric tonnes of carbon is released for each metric ton

of cement production.

17.2. ECONOMIC VIABILITY:

It is a well know fact that algae oil is still not economically viable, the United States is

making huge steps in trying to accomplish this and experts say that it may still take 3-5

years to achieve algae’s full economic potential. In the meantime other sources of revenue

can come from by products of the algae production system and from other resources.

Both CO2 and waste water can add economic value to the project, by providing revenue for

the algae farm. Carbon Credits can be obtained for sequestering CO2 from nearby emitting

plants and then resold at higher costs. Utilising municipal waste water for algae cultivation

can also provide revenue.

Once the algae has been harvested and the algae oil has been extracted the left over

biomass can be utilised in various ways. It can be burnt to produce more energy or made

into biogas through an anaerobic process and consequently used as animal feed.

It is obvious that algae fuel cannot solve the entire needs of the EU liquid fuel

requirements; however it can make a significant contribution to meeting the 2020 directive.

Algae farms can be established in the countries of the Mediterranean basin area to produce

algae, hence making the EU less dependent on fossil fuels and at the same time contribute

to the climate by lowering CO2, NOx, and SO2 emissions. Desert and coastel areas of the

southern Mediterranean countries could host such farms produce the crude oil and either

refine it or transport it to Europe as a crude oil. Initial investments may be high, however

in the long run these investments would pay off economically and environmentally.

49

17.3. CURRENT WORK IN ALGAE OIL PRODUCTION IN THE EU

UNITED KINGDOM:

Possibly the biggest algae venture in existence in the EU is the ₤26 million publically

funded project by the British company Carbon Trust. Carbon Trust plan to build a large

algae farm in Northern Africa. It has been working extensively over the last year, analysing

the algae bio-fuel opportunity and developing a R&D strategy, to overcome challenges.

The Algae Biofuels Challenge, (ABC) is a 2 phase project. Phase 1 will address

fundamentally R&D challenges and phase 2 will move to large scale production of algae

oil13.

Another EU funded project for EUR 6 million, has just been launched by the Scottish

government, called BioMara. The BioMara project will not only be looking at the single

celled algae species but also at the larger seaweed species which grow quickly and can be

harvested for their biomass14.

SPAIN:

In 2007 Aurantia (A renewable energy company in Spain) and Green Fuel Tech

(Massachusetts, USA), joined forces to produce algae oil. Their $US92 million project will

eventually scale up to 100 hectares of algae greenhouses producing 25,000 tonnes of algae

biomass per year. The plant will obtain its CO2 from a cement plant near Jerez.

ITALY:

Eni the Italian Energy Company have a 1 hectare pilot facility in Gela, Sicily. The project

is testing the photo-bioreactor facility as well as open ponds.

Another important project in Italy, not however yet underway consists of a €200 million

investment. Two major companies are venturing to put together eNave, of which the port

authority of Venice will own 51% of the share while the Rome based company Enalg Srl.

will own 49%. The company would employ about 46 people and would use up 10 hectares

for the bio-reactors near the industrial area of Venice – Marghera (Mestre). The biomass

cultivated would produce electricity.

13 http://www.carbontrust.co.uk/News/presscentre/2008/algae-biofuels-challenge.htm 14 http://www.biomara.org/

50

18. CONCLUSIONS

It has become quite apparent in the last 2 to 3 decades that as a society we must move

away from using un-sustainable energy resources. Resources such as coal, oil and gas to

some extent will always be part of the energy scenarios for a while to come, however our

dependence on them should shift to more renewable and sustainable resources. Wind,

solar, geothermal, and biomass are all renewable and GHG neutral energy resources, which

we must take advantage of.

Whereas investments have been quite substantial in solar and wind power liquid fuels

(with the exception of first generation biofuel feedstock) have received little economic

attention. These fuels are very important to our society and until such time that Hydrogen

as a fuel cell will become affordable and viable we will have to rely on liquid fuels for our

transport needs.

Most of the renewable energy sources like wind, solar, geothermal etc concentrate on the

production of heat and/or electricity; there are not many alternatives to petroleum on the

market. This is why first generation biofuels received a lot of attention until about a year

ago when it was realised that their impacts were more negative than positive. Policies were

soon put in place to regulate their production and distribution.

Investments in Aquatic Biofuels should be made and scale up projects should be

encouraged in order to reach economic viability as soon as possible and as an alternative to

1st and 2nd generation biofuels which derived from food products and plant non food

products respectively.

The alternatives for liquid fuels are not many, Aquatic Biofuels can be utilised without

major disruptions on the car and transport manufacturing industry, unlike perhaps using

ethanol, which would require modifications to the engine.

51

19. REFERENCES Benemann John., “Micoralgae Biofixation Process Report.” ENI, 2006 Dias de Oliveria, Marcelo E., Burton E. Vaughan, and Edward J. Rykiel Jr. “Ethanol as Fuel: Energy, Carbon Dioxide Balances, and Ecological Footprint.” BioScience 55:7 (2005):593-602 Edwards Mark., “Green Algae Strategy.” Tempe, Arizona; Edwards, 2008 Goodall Chris., “The technologies to save the planet London.” UK; Goodall, 2008 Hu, Qiang. “Industrial Production of Micoalgal cell-mass and secondary products – Major Industrial Species” Handbook of Micoralgal Culture Biotechnology and Applied Phycology. Ed. Amos Richmond. Oxford, Englad: Blackwell Science, Ltd., 2004; 264-73. Piccolo, A., ed. “Aquatic Biofuels.” http://aquaticbiofuel.com Sieg David., Nguyen Tram., “Making bio-diesel at home.” Sustainable Communities Enterprise “A feasibility study for fish oil bio-diesel production” for Clayoquot Biosphere Trust.