HOLY COW! Algae oil market about to explode!

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Thread: HOLY COW! Algae oil market about to explode!

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    HOLY COW! Algae oil market about to explode!

    Please don't merge this with my Alternative Fuels Update thread.

    According to the National Biodiesel Board, American biodiesel production has gone from 20 million gallons to 225 million gallons in the past three years. The capacity is much higher. The U.S. has the capacity to make 1.39 billion gallons of biodiesel per year. So why aren't we making more? Simple: the overwhelming percentage of biodiesel comes from soybean oil. When soybeans get too expensive, biodiesel producers cannot make biodiesel cheaply enough to sell it, so they shut plants down.

    The foregoing economics have no effect on biodiesel made from algae oil. Because there is no demand for algae oil other than for the production of biodiesel, the only limiting factor for the production of algae biodiesel is the production of algae oil. So here is the big news: PetroSun has announced that within the next three years, it plans to start producing 2.56 Billion gallons of algae oil per year! That is 11 times America's total biodiesel production in 2006. From 1 company. In 3 years. From algae!!!

    But that is only half the news. Soy oil is currently selling for $2.81 per gallon. This is why the biodiesel industry needs tax subsidies. PetroSun plans on selling algae oil at a price to shadow petro oil plus transit cost. Today, petro oil is selling for $72/barrel. Using PetroSun's formula, it would sell its algae oil for $1.71 per gallon -- 60% of the price of soy oil!!! No subsidies needed.

    To put this in perspective, the U.S. consumes about 63 billion gallons of diesel fuel per year. (There are 42 gallons in a barrel. Figures shown are in thousands of barrels.) Therefore, in 3 years, one company is going to replace 4% of the nation's diesel with algae biodiesel.

    And remember - there are several other companies aggressively trying to do the same thing. While not at the multi-billion gallon per year producton level yet, Imperium is close. There is no reason to doubt that we are on the verge of a true energy revolution.




    [Note: to avoid confusion, read here that 10 gallons of soy oil produces 10 gallons of biodiesel. It is not like petro oil, where a 42 gallon barrel of oil produces only around 7 gallons of petro diesel.]
    Last edited by HoosierRon; 08-30-2007 at 10:08 PM.

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    Re: HOLY COW! Algae oil market about to explode!

    And if that were not enough, here is a story about a single company that plans to quadruple America's biodiesel production in the next two years. America produced 225 million gallons of biodiesel in 2006. Renewable Energy Group, Inc., plans to produce 640 million gallons of biodiesel itself by 2009.

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    Re: HOLY COW! Algae oil market about to explode!

    Is this all talk and no action?

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    Re: HOLY COW! Algae oil market about to explode!

    wonderful news Ron! Algal oil really IS the way to go.....fed by sunlight and brackish/foul water, does NOT use edible food crops (that themselves are very energy intensive to produce), can be grown on wastelands useless for crops and wildlife, plus likely produces proteins useful as animal feed and its wastes are likely good soil amendments.

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    6.2 Liter LS3 V8 Ronald McChevy's Avatar
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    Re: HOLY COW! Algae oil market about to explode!

    this is amazing news. once this one company starts to really go, imagine how many others will try to follow. i wonder how long before 20% of our diesel fuel is biodiesel? ...50%? ...all of it? (no more "terrorist juice" as Ron calls it; i can't wait).

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    Re: HOLY COW! Algae oil market about to explode!

    Algae are just the most wonderful little dudes. You got something you don't want, and you can fine some of these guys who not only eat it up like candy, but poop out something that you need.

    Plus, they have some cousins called yeasts that make beer out of malted barley. If -I- could do that... doooooood....

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    Re: HOLY COW! Algae oil market about to explode!

    Quote Originally Posted by ronald mcretard
    i wonder how long before 20% of our diesel fuel is biodiesel? ...50%? ...all of it? (no more "terrorist juice" as Ron calls it; i can't wait).
    It will probably be another 5-10 years before production is at levels high enough to supplant enough regular diesel to warrant an across the board B20 standard.

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    6.2 Liter LS3 V8 IROCNROL1's Avatar
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    Re: HOLY COW! Algae oil market about to explode!

    To be more cynical than pessimistic, I wonder if someone is working feverishly to turn algae into a food source so they can complain about fueling cars with it.
    It sounded pretty good until I actually said it.

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    Re: HOLY COW! Algae oil market about to explode!

    Quote Originally Posted by mbukukanyau
    Is this all talk and no action?
    No. There is action on PetroSun's part.

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    Re: HOLY COW! Algae oil market about to explode!

    I like the idea of algae as a fuel source much more than corn...I'm not sure that it's the sole culprit but lately grain prices have rose quit significantly.

    The horse farm my girlfriend works on is having to pay so much more for grain now that their hardly making a profit anymore at the current prices they charge for training and boarding. It's not just them either, I've been hearing this story come up all around my part of southern Kentucky.

    Right now the farmers are already hit hard with a drought that has claimed many crops...this is why I see the use of corn for E85 as a double edged sword. You can't say it helps all the farmers in America because this a popular perception that is not true!

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    Re: HOLY COW! Algae oil market about to explode!

    Quote Originally Posted by IROCNROL1
    To be more cynical than pessimistic, I wonder if someone is working feverishly to turn algae into a food source so they can complain about fueling cars with it.
    As a botanist I feel certain that algae contains a fair amount of protein......this could not be transformed into oil as that is a hydrocarbon, and it is very unlikely it could be fermented into ethanol as that requires a carbohydrate....so I think it is likely that algal biodiesel will produce protein as a "waste product". I can imagine it being used as animal feed, or added to the TVP I eat a lot of anyway as a semi-vegetarian, or maybe just added to any protein based foods like frozen burger patties, etc. All in all this is one of the most exciting developments to come about in quite some time in terms of solving several issues at once. But then again I tend to be the perennial optimist in spite of it all...sure beats the self perpetuating gloomy pessimism of my early 20s!

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    GMI Staff Member Premium Member nadepalma's Avatar
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    Re: HOLY COW! Algae oil market about to explode!

    This was a good read Ron -- I'm not sure if I understand all of the technical stuff since I'd want to better understand how algae oil is obtained from regular algae -- but it certainly is promising.

    But certainly the most important thing is to reduce our dependence on foreign oil and become more energy independent from solely a strategic perspective. If some folks in congress wont let us drill for oil domestically, produce more nuclear power, establish plants with clean-coal technology, etc. then perhaps they'll be more inclind to allow THIS type of measure moving forward. I don't understand how they can talk out of both sides of their faces at once....

    Thanks for posting it...
    Last edited by nadepalma; 08-31-2007 at 08:54 AM.
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    Re: HOLY COW! Algae oil market about to explode!

    Algae oil always seemed like the best biofuel option for the united states. The only issue now is to get more of our fleet using diesel instead of gasoline. While ethanol may not be the best solution, combining it with a lot of biodiesel out in the market place should hopefully reduce oil consumption on all fronts. The only thing i worry about, if biofuels truely take hold, is that oil will fall back down to a price where these options aren't viable anymore and people go back.

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    Re: HOLY COW! Algae oil market about to explode!

    Quote Originally Posted by HoosierRon
    I am skeptical. The company in question has a market cap of under 10 million dollars. Their "actions" thus far seem to be limited to issuing a press release announcing plans to pursue patents and do demonstrations. I wish them the best of luck, but it looks as though this outfit is desperately trying to raise money through hype. If they were three years away from being a major player, I would think they would have their patents already, capital raised etc.

    Market cap

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    Re: HOLY COW! Algae oil market about to explode!

    Great news. Thanks for the post Ron. I am starting to think that we might be leaving our kids something great after all..... A United States of American that depends on no one for its energy needs....
    Erik

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