By Guest Author Mary Rosenthal Executive Director, Algae Biomass Organization

It’s been just two weeks since the conclusion of the 6th Annual Algae Biomass Summit. And what an event it was! More than 800 experts from around the world.  More than 200 combined poster and oral presentations.  Networking events. Pre-conference tours. It was great. 

That said, I must admit that one of my favorite parts of the event was the last day, during which we presented the first ever Young Algae Researcher Awards to six of the brightest up-and-coming minds in our industry.  Together in the same room was the present – and future – of our industry.  It couldn’t be more exciting!

This year’s summit featured industry accomplishments that demonstrate progress from lab to commercialization.  On the research front we had a record number of poster sessions, and sold-out attendance at the pre-conference tour of The National Bioenergy Center at the National Renewable Energy Laboratory (NREL), a leader in state-of-the-art algae research in the United States.

On the commercial side, attendees in Denver heard details about impressive projects like Sapphire Energy’s integrated biorefinery in New Mexico – more than 300 acres and 600 jobs that will soon be producing 100 barrels a day.

Algenol’s incredible announcement, heard first by Summit attendees, that it is producing 7,000 gallons of ethanol per acre was a potent reminder of the incredible potential that algae have to produce a variety of fuels in great quantities with high efficiency.

The focus was not on fuels alone, however. We heard from corporate giants like Kimberly Clark about its use of algae to replace plant fiber in tissues and paper, as well as fibers used in carpets.

We heard from the Scoular Company, a century-old agribusiness company buying, selling, storing, handling and transporting grain and food and feed ingredients worldwide, about their use of algae in the animal feed and food markets.

Captivating photos of algae projects in Europe, shown by Vitor Verdelho Vieira, Chief Development Officer at A4F-AlgaFuel, reminded everyone that efforts in the U.S. are not alone and that we should not be complacent. Major government and private investment in India, China, and almost every OECD country (even Iceland) means many more companies are entering than exiting the space–the first signs of a possible global boom (or should I say bloom?).

Each year the industry promises to show its best at the Algae Biomass Summit, and each year it does not disappoint.

The excitement was so great this year that nearly 100 people approached the ABO booth to become new members. That’s the most successful Summit membership drive we have ever had! Summit attendees can still sign up for a discounted membership, read the details below to learn how.

If you missed out on some of the developments in Denver you can read more in the updates below. If you weren’t able to make it this year, and don’t want to miss out on the networking and excitement you get from attending, I urge you to mark your calendars for September 30 – October 3 next year, when we will be in Orlando, Florida at the Hilton Orlando.    In the meantime, we will all be working on another impressive year of milestones! 

My ten year vision for personal transportation in California is crystal clear.  It is definitely electricity or maybe algae biofuel or perhaps hydrogen or even natural gas or possibly what we are already doing only less so.  Recent reports confirm my long-held conviction that much of life is spent in the selective search for “facts” to support conclusions already embraced.  Here are some recently released resources you can utilize to rationalize your point of view.

Earlier this month saw the release of Electric Drive by ’25, How California Can Catalyze Mass Adoption of Electric Vehicles by 2025.   The 28 page report was jointly conceived by the law schools at Berkeley and UCLA.  Greg Haddow of San Diego Gas & Electric was one of the panel members at the May 2012 Climate Change Workshop that informed this analysis.

The California Fuel Cell Partnership (CaFCP) has released a new report called, A California Road Map: The Commercialization of Hydrogen Fuel Cell Vehicles.  In San Diego, Pearson Fuels is currently developing its hydrogen business model for existing or newly-built gasoline stations in California.

The Algae Biomass Summit is underway this week in Colorado.  Adding to the fun is a turbo-charged, 800cc diesel powered track motorcycle from Holland.  UC San Diego has provided a 50/50 blend of biodiesel derived from algae and cooking oil waste.  Sapphire Energy’s contribution is a 100% algae-derived Green Crude diesel fuel.  Below the Surface’s ‘Driving Innovation’ Team established the first official algae-fueled motorcycle speed record during The Texas Mile land speed event in March reaching 94.6 mph. 

Even faster than the pond scum powered bike is the new Tesla Model S which can accelerate from 0 to 60 mph in under 4.4 seconds.  Yesterday Tesla Motors unveiled its highly anticipated Supercharger network. Constructed in secret, Tesla revealed the locations of the first six Supercharger stations, which will allow the Model S to travel long distances with ultra-fast charging throughout California, parts of Nevada and Arizona. The electricity used by the Supercharger comes from a solar carport system provided by SolarCity.  Elon Musk, Tesla Motors co-founder and CEO is also the Chairman of SolarCity.  The use of the Supercharger stations will be free for Tesla Model S owners. 

UC San Diego has an established fleet of electric vehicles supported with the necessary charging infrastructure.  Yesterday they announced the installation of the first of 20 public EV charging stations on the campus in La Jolla.  Turnkey solar system provider Sullivan Solar Power is responsible for the installation.

Wildcat Discovery Technologies, a privately held San Diego company focused on battery materials development, said Wednesday it signed a multi-year joint development agreement to develop materials to improve rechargeable battery technology with Japan’s Ashai Kasei Corp., one of the world’s largest producers of advanced battery separators.  Wildcat maintains it can accelerate improvements in battery technology with its capabilities to design, develop and commercialize transformational advanced battery materials. The company claims its 32-person team of scientists and engineers uses proprietary high-throughput tools to develop and optimize materials.

The most expensive component in an electric car is the battery, so why not put it to work making EVs not just environmentally but also financially appealing? That’s the idea behind V2G (Vehicle to Grid) technology.  The EV owner makes their battery available to the utility during a given period and, depending on supply and demand in the grid, the utility uses the car as a short time energy storage solution in order to help regulate the power frequency of the grid. The value of providing these regulation services is very high.  An article in Intelligent Utility magazine drew heavily on the explorative work being done by San Diego Gas & Electric.  Alex Kim, director of customer innovations at SDG&E noted that “San Diego may have one of the highest densities of EVs in its region (more than 1,600) than any region in the country.  SDG&E also may be tops in distributed solar photovoltaic panels, with more than 18,000 grid-tied systems. In combination, those two resources support a V2G business model that would focus on localized benefits in addition to ancillary services for the wholesale market that serve an ISO or RTO.”  Xconomy is also on the V2G story with their article, Detroit Leading U.S. Development of New Vehicle-to-Grid Technology.   

The mix of what will fuel the cars of the future is uncertain.  What is absolutely certain is the unsustainability of a national car/truck infrastructure funded by the current fuel tax.  Even if electric vehicles fail to gain market share, the Federal mandate to increase fuel economy to 54.5 miles per gallon for cars and light-duty trucks is a road revenue killer.  An article in the Wall Street Journal last week warned, “Looking ahead, the Congressional Budget Office predicts new federal fuel-economy standards will reduce revenue by 21% in 2040 when they are fully phased in. To illustrate the effect of a 21% drop, the CBO estimates that if all cars on the road now met the stricter efficiency standards, it would mean a $57 billion cumulative reduction in revenue between now and 2022”.  This is another opportunity for Congress to act in the present rather than their usual ploy of punt and pray.

By Guest Author Mary Rosenthal Executive Director, Algae Biomass Organization

The algae industry’s successes have rarely been more apparent than this summer. On the heels of the Navy’s biofuel testing at RIMPAC in Hawaii in July, the most exciting news in August comes, surprisingly, from Congress, where the first-ever algae fuel tax credit was advanced in a bi-partisan vote of the Senate Finance Committee.
 
But that is not all. The vote came as ABO was completing preparations for an aggressive algae education campaign, the Summer of Algae II, in states across the nation, and as we acknowledged that the growing recognition of algae by audiences outside the lab required we give ABO a new name.
 
What’s in a name?
 
The word “Algae” is becoming a topic of discussion in the public sphere like never before. Successful tests like the U.S. Navy’s “Green Fleet” are bringing the topic of algae into everyday conversation. The same is true in policy venues, and we’re thrilled that the industry is moving out of exclusively academic and lab settings into the commercial and consumer markets.
 
So, earlier this month, we officially changed the name of the organization to the Algae Biomass Organization to better reflect the term that most people use and associate with our industry. We are still led by a dynamic and committed board of directors; we still have the largest cross-section of industry partners within our membership; and we continue to advocate tirelessly for policy and regulatory issues that benefit our industry.
 
An algae-based fuels tax credit
 
The growing awareness that prompted this name change also resulted in some great news on the policy front.
 
On August 2nd the Senate Finance Committee approved the Family Business Tax Cut Certainty Act of 2012. The bill, which received bipartisan support in the Committee, would extend the tax credit for the production of cellulosic biofuel through the end of 2013.
 
The bill would also extend the cellulosic biofuel tax credit to algae-based fuel for the first time.
 
This is one of ABO’s legislative priorities, and we were very pleased to see our language included in this legislation. The bipartisan support for the inclusion of algae-based biofuel is a significant milestone that will put the algae industry in an excellent position going into the legislative debates ahead.
 
The Summer of Algae II
 
ABO is building on this success with an aggressive education campaign that kicked off last week. ABO members across the nation are opening their doors to local and national officials to offer a first-hand look at the local jobs we are providing, the fuels and products we can make, and vast potential of the industry if given the right policy support.  We are calling this campaign the Summer of Algae II, in deference to the milestones of 2009 that Biofuels Digest dubbed the first Summer of Algae.
  
As summer winds down, keep in mind that these new policy victories, industry milestones, and educational events are building up to the largest, most important Algae Biomass Summit yet, to be held in Denver, September 24-27.  You can expect celebrations of the past year, planning for the next, and plenty of new business networking for an industry with a very bright future.
 
I can’t wait to see you there!

Mary Rosenthal

Executive Director, Algae Biomass Organization

By Guest Author Jason Anderson, Vice President of CleanTECH San Diego

Earlier this week, I participated in the kick-off of the Algae Biomass Organization’s Summer of Algae Tour at UC San Diego. This event was co-hosted by Scripps Institution of Oceanography, UC San Diego and the San Diego Center for Algae Biotechnology (SD-CAB).  The Summer of Algae Tour aims to educate policy makers about the algae biomass industry and its vast potential to continue creating jobs, domestic fuels, feedstock and other vital products.  The kick-off featured CleanTECH San Diego members Synthetic Genomics, General Atomics, Cellana and Sapphire Energy. Their pioneering work, along with the applied research within our local universities and institutions, serves as a stunning reminder of the global leadership provided by our region’s biofuels industry.  As Dr. Greg Mitchell of Scripps Institution of Oceanography explained to the audience, we are truly a “cluster of excellence.”  More information on ABO’s Summer of Algae Tour can be found here. 

My remarks at the event highlighted the EDGE Initiative and its successful conclusion.  As you know, more than two years ago CleanTECH San Diego and a number of key partner organizations, received a $4 million grant from the State of California to create curricula and workforce training programs designed to support our region’s biofuels and industrial biotech industry.  I am pleased to report that our work is complete.  Through a close collaboration, we have designed programs that not only support the biofuels and industrial biotech industry today, but will continue to evolve to meet industry needs as it matures.  To date, we have trained more than 300 workers and over one-third of those trained are now employed in the industry.  Just as the region’s research institutions and private sector companies continue to gain momentum and investment for their advances, EDGE’s cutting edge curricula and training programs are being considered for adoption by institutions all over the world.

The success of this program is due to a large number of people and organizations.  I would especially like to think Victoria Bradshaw, former Secretary, California Labor and Workforce Development Agency, for her leadership and support, Steve Mayfield and his team at SD-CAB and UC San Diego for their hard work and dedication in creating EDGE’s curricula and training programs, and Kristie Grover and the BIOCOM Institute for their work on behalf of the students.  I would also like to thank the Industry Advisory Council, made up of private sector companies (including those mentioned above), which were a critical component to this initiative, as they helped shape the final product.

The EDGE Initiative proves once again that San Diego’s spirit of collaboration is real and it works.  By forming partnerships with public and private stakeholders, we can continue to address the needs of our rapidly growing cleantech sector.  

Click EDGE Program Overview for an overview of the EDGE Initiative, and its impressive results.  I hope you take the time to read it.  Please let me know if you have any questions or need additional information.

Jason Anderson is Vice President of CleanTECH San Diego.  He can be reached at: jasona@cleantechsandiego.org

On Monday, August 20, the first of a series of events featuring algae will kick off as part of a national campaign to raise awareness about the promise of the algae industry to create jobs, domestic fuels, and other food and feed products.  Through open-house style events, local and national officials will experience the research, products and jobs being created by some of the algae industry’s leading companies and research institutions.

The “Summer of Algae II” is sponsored by the Algae Biomass Organization, the trade association for the U.S. algae industry, and implemented by its member companies, with events primarily taking place during the next two weeks but also stretching into early Fall.  The campaign’s name is a nod to the original Summer of Algae, coined by Biofuels Digest editor Jim Lane to characterize the developments and momentum in the summer of 2009.

Companies and organizations participating in the events represent the broad geographic and technological variety of algae companies, including: Algaedyne (Minnesota); Algenol (Florida); Arizona State University (Arizona); BioProcess Algae, LLC (Iowa); Boeing Commercial Airplanes (Washington); Cellana (Hawaii); The Colorado Center for Biorefining and Biofuels (Colorado); Duke Energy (Kentucky); FedEx (Tennessee); General Atomics (California); Matrix Genetics, LLC (Washington); Phycal (Ohio); The San Diego Center for Algae Biotechnology at UC San Diego (California); Sapphire Energy (California); Solix BioSystems, Inc. (Colorado); St. Cloud State University (Minnesota); and Synthetic Genomics (California).

 “The Summer of Algae II will demonstrate the truly national promise of algae-based technologies to create jobs, develop a domestic fuel industry and manufacture a variety of other goods and products,” said Mary Rosenthal, executive director of the Algae Biomass Organization.  ”It’s important for policymakers at all levels to understand the huge potential of this industry to contribute to economic development, energy independence and national security.”

Currently, more than 200 companies across the U.S. are developing algae-based technologies to produce domestic, cost-competitive and sustainable products within multi-billion dollar industries such as fuels, animal feed, Omega-3 oils, cosmetics and other products.  Continued instability in the Middle East along with heat waves and droughts in the U.S. Midwest serve as an important reminder of the need to continually diversify sources of fuel and food.

Campaign events range from small briefings with local officials to larger tours of laboratories and commercial facilities that include panel discussions among several regional algae companies and research groups to announcements about new technologies.  Each event will focus on the unique local impact the industry is having on jobs, and how algae can be used to produce domestic fuels and products that enhance American energy security in an economically and environmentally sustainable manner.

 
A full list of events can be found on the Algae Biomass Organization’s Blog: www.algaebiomass.org/blog.  Interested parties can follow the campaign on twitter @algaeindustry, #summerofalgae and on the Algae Biomass Organization facebook page.

In addition to education and outreach efforts with policymakers, ABO produces and hosts the industry’s premier annual global conference, the Algae Biomass Summit, which this year will be held in Denver, CO, September 24-27 at which more than 800 algae industry leaders are expected to convene.  Earlier this year, ABO launched AllAboutAlgae.com, the first website designed to showcase algae’s potential to audiences ranging from those just learning about algae to seasoned algae enthusiasts, media and entrepreneurs.

Southern California Gas Co. (SoCalGas) and Scripps Institution of Oceanography at UC San Diego (Scripps) today announced an agreement focusing on the design of an innovative system in which algae consume carbon dioxide (CO2) emissions from natural gas combustion and cost-effectively convert it into valuable byproducts such as biomethane, biodiesel and animal feed.

For several years, researchers at Scripps, a member organization of the San Diego Center for Algae Biotechnology, and a number of commercial companies around San Diego and elsewhere, have been studying how algae can most efficiently be developed into a clean, renewable biofuel to one day replace non-renewable fossil fuels. Taking this research a step further, Scripps’ researchers hope to leverage algae’s natural ability to absorb CO2 in the environment and convert it into oil rich biomass or biomethane or refined into fossil fuel replacements. After extracting the oils for biodiesel, the remaining biomass can be sold as a safe, protein-rich animal feed.

The new collaboration between Scripps and SoCalGas includes an investigative research and systems engineering study to explore how algae production systems currently in development could most effectively capture industrial CO2 emissions. Targeted CO2 sources include: natural gas power plants, large engines used in natural gas compression and water pumping and boilers used to produce steam for industrial processes such as enhanced oil recovery.

“We are very excited to enter into this collaboration with Southern California Gas Company and bring our world-class scientific and engineering analysis capabilities to bear in assessing state-of-the-art algal culture systems for CO2 capture from point sources,” said Dominick Mendola, a senior development engineer in the laboratory of Greg Mitchell, a Scripps biologist who has explored marine algae for their potential as a new biofuel source. “If the Phase I analysis proves such systems can be safe and

Gregory Mitchell UCSD

economical, we then hope to enter into a Phase II agreement to help SoCalGas build and operate a module of a commercially scaled system, and test its capabilities at a site to be selected within Southern California.”

“We are strongly committed to supporting the development of zero and near-zero- emission natural gas technologies. Recovering CO2 from combustion and turning it into commodities such as biomethane, biodiesel or a high-quality animal feedstock is great for the environment while creating valuable products,” said Hal D. Snyder, vice president of customer solutions for SoCalGas. “None of this is easy, but working with world-class scientific organizations like Scripps Institution of Oceanography and UC San Diego greatly improves our chances of success.”

Click here for Eric Wolff’s article in the North County Times.

Yesterday was a good news day for the rapidly growing algae biofuel industry in San Diego.  Local TV station KPBS produced a comprehensive video segment, 2012 Could Determine Future Of Algae As Fuel.  Click here for the video.  

La Jolla-based Sapphire Energy announced a breakthrough via a white paper, “An exogenous chloroplast genome for complex sequence manipulation in algae.”  

“With this breakthrough, Sapphire Energy has shown that it is possible to make algae–the world’s most efficient photosynthetic organism–even more efficient,” said Jason Pyle, Sapphire Energy founder and CEO.  “This work represents the first steps toward a novel approach for creating genetic diversity in any or all regions of a chloroplast genome, and may have applications in other plants.”  

Click here for the full report.   

Grants for up to $7,000 are available for biofuels training for 55 students.  Classes will be held at UCSD Extension and Mira Costa College starting in March 2012.  Details here.

If algae is to be the solution for America’s pain at the gas pump, trained workers are needed to make that a reality.  Applications are now available for continuing education grants at the University of California San Diego to retrain workers as general science technicians in the rapidly expanding biofuels industry in the San Diego and Imperial County region.

Approximately 55 students will begin classes in March of 2012, with each student receiving the equivalent of a $7,000 grant from the State of California. Prospective students from across California interested in applying for next year’s EDGE program and biofuels and industrial biotechnology companies interested in hiring interns from the program should contact Karen Overklift at the BIOCOM Institute (858) 455-0300, extension 104 or koverklift@biocom.org or go to http://tinyurl.com/4d9m93g

Algae, the substance known to many as “pond scum,” may one day be the fuel that powers U.S. automobiles.

“That’s what petroleum is – it’s ancient algae,” said Dr. Stephen Mayfield, a professor of biology at UC San Diego and director of the San Diego Center for Algae Biotechnology (SD-CAB). “Algae already makes oil that looks like crude oil. The oil we extract from algae goes directly into a refinery and gets converted into diesel or gasoline.”

The students, who will attend classes at UC San Diego Extension and Mira Costa College, are the second cohort of students in a program funded by a two-year, $4-million grant from California’s Department of Labor under the Green Innovation Challenge.

“Nationwide there is a need for skilled workers to participate in the development and commercialization of new technologies, as we can see in the field of alternative energies,” said Hugo Villar, director of science and technology at UC San Diego Extension. “The university has been a leader in helping adult learners acquire new knowledge and skills that allow them to transition out of stagnant areas of the job market and participate into more vibrant areas as we are doing now with biofuels.”

“This program is not only training workers for new jobs in the local economy, it will eventually help our nation become less dependent on foreign oil,” said Mayfield, “The bioenergy sector will eventually be creating millions of jobs nationwide. Our biggest challenge will be to keep those jobs in California.”

The grant involves the work of a number of local partners, which include UC San Diego, San Diego State University, Mira Costa College EDGE program, SD-CAB, CleanTECH San Diego, BIOCOM Institute, BIOCOM, San Diego Workforce Partnership and the San Diego Regional Economic Development Corporation.

“With this training, these students are prepared to support the region’s growing biofuels companies and help San Diego continue to be a leader in the biofuels sector,” said Jason Anderson, vice president of CleanTECH San Diego, a non-profit organization that is helping to accelerate San Diego as a world leader in the clean technology economy.

San Diego is widely recognized as one of the world’s leaders in biofuels research and development. A recent analysis, conducted by the San Diego Association of Governments (SANDAG), found that for the algal biofuels sector alone, the industry provides the region with 410 direct jobs and $56 million in direct economic activity and $108 million in total economic activity annually.

“It’s critical that we build the research and development infrastructure for the biofuels industry here,” said Mayfield. “Right now, we have a head start on the rest of the world and we can’t afford to lose that.”

Thanks to the $4-million EDGE grant, San Diego has also become a national leader in training biofuels technicians. Mayfield said feedback from the program’s graduates, faculty and local biofuels companies will lead to a redesign of the curriculum for the next class of science biofuels technicians, which will run from March through August of 2012. Once the program is perfected, an online, web-based curriculum will be made available to any California university or college, and through enrollment in UC San Diego Extension to anyone around the world who wants to gain basic science training to enter the biofuels industry.

Agriculture Secretary Tom Vilsack announced today that USDA has issued a loan guarantee that will allow biofuels firm Sapphire Energy to construct a facility in New Mexico to produce “green crude” oil from algae which can be refined into transportation fuel.  The project is intended to advance American efforts to provide renewable commercial-scale biofuels, increasing energy security and reducing dependence on foreign oil.  The project is expected to create 60 jobs in the community of Columbus, NM.

“The Obama Administration is committed to providing support for renewable energy production which will safeguard national security and create jobs in rural America,” said Vilsack. “This project represents another step in the effort to assist the nation’s advanced biofuel industry produce energy in commercial quantities from sustainable rural resources.”

La Jolla-based Sapphire Energy intends to design, build and operate a $135 million integrated algal biorefinery (IABR) in Columbus, N.M., for the production of advanced biofuel that is a “drop-in” replacement for petroleum derived diesel and jet fuel.  The IABR will be capable of producing 100 barrels of refined algal oil per day, equivalent to at least one million gallons per year.  The oil will be shipped to the United States Gulf Coast to be refined by Sapphire’s refinery partner, Dynamic Fuels, located in Geismar, LA.

The funding is provided through USDA’s Biorefinery Assistance Program. On December 3, 2009, USDA issued a conditional commitment for an 80 percent guarantee on a $54.5 million loan.  The loan closing and issuance of the Loan Note Guarantee for this project took place on October 21, 2011.

Today’s announcement is in concert with the objectives of the Renewable Fuel Standard, known as RFS2, which reaffirmed the goal of producing, by 2022, 36 billion gallons of biofuels to include 21 billion gallons of advanced biofuels.

Producing fuel from algae is seen as one way to provide for domestically produced fuel for commercial and military use.  USDA is partnering with the Department of the Navy as it embraces a biofuel future.  USDA has also signed a Memorandum of Understanding with the Federal Aviation Administration (FAA) to help the commercial airline utilize biofuels as jet fuel.  Under the MOU, the USDA and FAA are working together with the airline industry to develop appropriate feed stocks that can be most efficiently processed into jet fuel.  Doing so will decrease the industry’s current dependence on foreign oil and help stabilize fuel costs in the long run.

Sapphire Energy Video

Carl Nettleton, Lee Stein, Elizabeth Dreicer McPhail, Bryce Rhodes

The E2 San Diego Chapter held an EcoSalon on Thursday, October 20, titled, “Energy Security and the Impact on the Economy.”  The event was held at Chapter Co-Director Lee Stein’s home and featured three panelists: Leendert “Len” Hering Sr. RADM, USN (ret.); Stephen Mayfield, UC San Diego Professor of Biology and Director of the San Diego Center for Algae Biotechnology; and Marney Cox, Chief Economist for the San Diego Association of Governments (SANDAG). E2 San Diego Chapter Co-Director Carl Nettleton moderated the session. 

San Diego is a hub for both the military and alternative fuels development and the panelists discussed the national and local imperatives driving the military’s emphasis on reducing or eliminating fossil fuel use.  According to Chapter Co-Director Elizabeth Dreicer McPhail, the event met the goal of bringing together a small but quality group of business and community leaders to provide visibility for E2 while researching locally important issues and appealing to potential new members.

In August E2 published a 23 page report, Advanced Biofuel Market Report 2011.  Click here for your copy.

Environmental Entrepreneurs (E2) is a national community of business leaders who promote sound environmental policy that builds economic prosperity.  E2 has seven chapters: Northern California, New England, New York, Pacific Northwest, Rocky Mountains, Los Angeles, and San Diego.

Cleantech companies in San Diego continue to receive global recognition as innovators.  On Wednesday Cleantech Group LLC (not to be confused with CleanTECH San Diego) announced their 2011 Global Cleantech 100.  From our region the honorees were Genomatica, On-Ramp Wireless and Synthetic Genomics.  There are 58 U.S. companies on the list with California way in front with an impressive 36.  In all, 16 countries were represented.

The rigorous selection process began with a long list of 4,274 nominated companies.  The expert panel was made up of 70 individuals drawn principally from leading cleantech investors from around the world. 

The leading cleantech sub-sector was Energy Efficiency with 19 companies.  This was followed by Solar (14), Water & Wastewater (12), Energy Storage (10) and Biofuels & Biomaterials (9). 

Click here to read the 32 page report. 

The road to affordable alternative fuel for your car may be at 36,000 feet.  Aviation fuel from non-petroleum feed-stocks will be the first big win for alternative transportation fuel.  This success will bring a wealth of tech experience, concept proofs and scale which will jump start the introduction of new fuels for ground and water transportation.  Here are the five top reasons why jet fuel will be biofuels’ first big win.

Motivated buyers with concentrated demand

Of the more than ¾ billion vehicles on this planet the vast majority are owned by individuals or small businesses.  Most share my annoyance with the ever elevating price at the pump, but my annual expenditure for fuel is a small portion of my total budget.  In contrast, jet fuel is consumed by a limited number of commercial carriers and militaries.  Their fuel costs are a significant portion of their operating budgets. 

In the last decade over 25 airlines have ceased operation strangled by an ever tightening fuel hose.  For the survivors the risk of fuel price increase is greater than the opportunity to increase revenue.  Passenger-carrying flights with jet biofuel from a variety of non-petroleum feed-stocks have been flown by Continental, Quantas, United, Iberia, Air New Zealand, British Airways, Northwest, KLM, Japan Air Lines and a host of others.  American Airlines signed with 14 other carriers to purchase alternative fuels.  This week Sir Richard Branson of Virgin Atlantic announced the development of a world-first low carbon aviation fuel with just half the carbon footprint of the standard fossil fuel alternative.  The technology from New Zealand-based LanzaTech represents a breakthrough in aviation fuel technology that will see waste gases from industrial steel production being captured, fermented and chemically converted using Swedish Biofuels technology for use as a jet fuel. The revolutionary fuel production process recycles waste gases that would otherwise be burnt into the atmosphere as carbon dioxide.  Boeing is supporting the effort.  A $3.5 million Series A funding was led by billionaire Vinod Khosla.  In June an award from the Defense Advanced Research Projects Agency (DARPA) was made to LanzaTech to perform research focusing on novel, low cost routes for the production of jet fuel (JP-8) from carbon monoxide (CO) rich sources.   Click here for Branson’s video presentation.  And here for the release. 

Concentrated distribution infrastructure 

Ground transportation is characterized by over 300,000 filing stations world-wide.  There are only 1700 airports (excluding military) of which about half are international.  Access to just 500 of the top airports represents a significant portion of jet fuel consumption. 

No competing innovations for foreseeable future

Boeing does not have an electric plane on the drawing board.  There is no Airbus Leaf or Volt.  No CNG, nuclear, solar or long-life batteries.  Biofuels are the drop-in alternatives to the dead dinosaur derivative. 

The scale is doable and significant

Boeing says the world’s airlines burn 60 billion gallons of petroleum based jet fuels each year.  If alternative fuels were to capture 15% or 20% of this market the industry would achieve a scale which would spill over onto other fuel markets. 

An effective military trumps a dysfunctional government

Twenty years ago it would have been difficult to foresee a future in which treehuggers would be obstructionists to alternative energy projects and career militarists would be the driving force for prioritizing our society’s clean energy goals.  A Congress which cannot pass a budget and an administration which cannot articulate a national energy policy are impotent to nurture innovation.  Fortunately the military is responsive and undeterred by the dearth of leadership from our elected officials.

The U.S. military consumes more energy than any other consumer in our country.  About 84% goes for aviation fuel.   Dollars wasted on rising fuel costs are at the expense of other critical needs.  The threat of supply interruptions increases with our growing dependence on oil shipped from half a world away.  The military’s response is clear and unequivocal.  Clean energy is a matter of national security.  All services branches are moving forward on plans with specific goals and time targets.  Click here to read the commitment of four retired top ranking officers to our military’s clean energy objectives. 

Navy Secretary Ray Mabus has directed the Navy and Marine Corps to generate half of their energy needs from renewable sources, including biofuels, by 2020.  San Diego’s rapidly growing cluster of biofuel companies and research institutions is an integral part of the response to the opportunity.  General Atomics and SAIC have been awarded contracts by DARPA to develop the technical capability and affordable production of military JP-8 surrogate fuel from algae feed-stocks.  Sapphire Energy, Synthetic Genomics, S.G. Biofuels and other San Diego-based biofuels companies are all a part of this important transformation of our energy driven economy. 

Biofuels Digest provides additional insight on the role of aviation biofuels, Quick Win: aviation biofuels offers breakout for clean energy.

To learn more about the local burgeoning biofuels cluster go to the San Diego Center for Algae Biotechnology (SD-CAB).  SD-CAB along with UCSD, SDSU, CleanTECH San Diego, and BioCOM collaborated to launch Educating and Developing Workers for the Green Economy (EDGE) focused on educating a next-generation workforce in green technology.

Since 1987, the CONNECT Most Innovative New Product (MIP) Awards have been San Diego’s “Oscars” for local technology innovation.  The 2011 finalists in the Clean Technology category include Genomatica for Process for High-Volume Chemicals from Renewable Feedstocks, Noble Environmental Technologies Corporation for ECOR and Wildcat Discovery Technologies for 5V Cathode (CM1) and Electrolyte (EM1).  Winners will be announced on Friday, December 9th before an audience of more than 800 of San Diego’s top executives, entrepreneurs, VCs and academics.  Click here to register for the MIP exhibition and awards luncheon. 

San Diego’s 18th Annual TechAmerica High Tech Awards finalists in the Clean Technology category include EcoATM, Hadronex, Juice Technologies and Sapphire Energy.  Click here to register for the October 28th event. 

The regional cleantech cluster in San Diego continues to receive national recognition.  On Wednesday the Global Cleantech Cluster Association announced the semifinalists for the 2011 Later Stage Award competition.  This best-of-the-best recognition includes four San Diego cleantech companies, Genomatica, PowerGenix, Achates Power and EcoATM.  In another forum Sapphire Energy was honored as a “Game Changer of the Year 2011” in Clean Technology by Grow-California for their impact on California’s green industry.

I am reading Mark Stevenson’s book, An Optimist’s Tour of the Future.  He quotes Ray Kurzweil, “Our intuition is linear and I believe it’s hardwired into our brains.”  This linear bias bangs hard against the “Law of Accelerating Returns”.  Technological innovation feeds upon itself.  Innovative growth is not 1+1+1+1, but rather 1+2+4+8.  Although the ubiquitous iPhone is a reminder of the how explosive innovation can be, we look to the future dreading that positive change will be too little, too late.  Our linear bias leads to judgments influenced by static inputs rather than future values which will be determined by innovation replicating exponentially.  The commercialization of algae biofuels is an important example.

The algae business is basically farming.  The output of the algae agricultural system will be used to produce “drop-in” biofuels as well as animal feed and a myriad of other products.  If all technological innovation were frozen at this moment, the algae biofuel business would most likely not be commercially viable.  However, just like corn and pigs, improvements are being made over time. 

In my lifetime the yield per acre of corn has tripled due to improved genetics and production technology.  What took years and decades to happen with grains and livestock is happening over weeks and months with algae.  The algae industry is not only benefiting from the explosive technological innovation of the past decade, but also from the huge universe of algae being screened to identify commercially viable strains.

There are over 800 breeds of cattle.  The gestation period for cattle is about the same as humans.  Heifers can be bred at about 12 to 14 months.  Now imagine a breeding program with cattle drawn from over 5,000,000 different species which can produce a new generation every 30 days.  With existing technology, genome engineering and capital, the accelerating refinement of super strains is rapidly advancing the algae industry.  The algae of the very near future will be as dramatically improved as the pig of 2011 compared to his scrawny ancestor of the 1950s. 

La Jolla is at the center of the global algae Petri dish.  Greg Mitchell, director of the Photobiology Group at the Scripps Institution of Oceanography, has a global reputation as an algae pioneer.  The San Diego Union Tribune wrote about his exciting life, “Algae visionary imagines a future that’s green — literally”.   Click here to read.

The two largest equity fundings for algae biofuel development were done in the La Jolla zip code (Synthetic Genomics and Sapphire Energy).  On Wednesday I attended a press conference for California Assemblyman Nathan Fletcher who was named chair of a new committee that will focus on creating a climate for jobs.  Sapphire Energy was selected as the site for the event to showcase the importance of innovation for job creation.  After the remarks we toured Sapphire’s labs.  Their time line is clearly stated.  “We expect to be at demonstration scale in three years and at commercial scale by 2018.”  Sapphire Energy has received $54.5 million in loan guarantees from the USDA Biorefinery Assistance Program to build a plant to turn algal oil into jet fuel.

The challenge for most disruptive technologies is finding a deep-pockets customer that is sufficiently convinced to make a meaningful buying commitment.  The algae biofuels business has that in the U.S. military.  The military’s motivation is both financial and strategic.  They know that their greatest vulnerability is dependence on imported oil.  Their bill for fuel and electricity last year was $20 billion. The prospect of growing fuel in Hawaii and Southern California versus shipping oil half way around the world has a strong appeal.  Of greatest importance to the algae biofuel industry is a military making their decisions based on future economic and strategic plans unimpeded by the wrong-headed influence of politicians. 

The military’s impact on accelerating the growth of the algae biofuels industry will be enhanced if legislation is passed allowing the Pentagon to sign long-term contracts for up to fifteen years as opposed to the current five-year limit.  A long-term commitment from a highly-rated buyer makes deal financing substantially more doable.  Members of the aviation industry testified at a Senate Aviation operations, safety and security subcommittee hearing requesting legislation enabling the Defense Department to enter into long-term contracts for fuels.

To learn more about the local burgeoning biofuels cluster go to the San Diego Center for Algae Biotechnology (SD-CAB).  Greg Mitchell was one of the founders.  SD-CAB along with UCSD, SDSU, CleanTECH San Diego, and BioCOM collaborated to launch Educating and Developing Workers for the Green Economy (EDGE) focused on educating a next-generation workforce in green technology.

By Guest Author  Mary Rosenthal Executive Director, Algal Biomass Organization

In our country’s spirited debate over energy, innovation and the economy, perhaps no phrase has been uttered more often than “green jobs.” While the precise meaning of “green job” continues to be a topic of debate, I would submit that jobs in the algae industry are indeed at least a little shade of green. Or maybe blue-green.

In today’s biofuels industry, most of the growth has centered on jobs for those workers who have already been trained in the fields of construction; engineering; chemistry and biology; sales and marketing; legal and administrative, and others. The industry now supports tens of thousands of direct and indirect jobs across the country and up and down the value chain – from Ph.D-level microbiologists to plant personnel to legal counsel to metal fabricators and truckers; from the labs of San Diego to the ethanol plants of Iowa to the offices of Silicon Valley.

That is something we rightly celebrate as an industry. It also something policymakers in Washington D.C. would be wise to recognize as they continue to seek ways to create jobs and spur economic growth.

The next generation of green jobs

Much less has been said, however, about the tremendous need to develop the next generation of biofuels innovators. Regardless of technology, feedstock or business plan, this is something that is a concern of the industry as a whole. Because a new generation of experts will be required to help today’s companies continue to (more…)

There is no place in the world where more people are working to advance the science and commercialization of algae biofuel than in San Diego.  Three announcements this week underscore the region’s standing in the quest to develop practical alternatives to fossil fuels.

On Tuesday the California Department of Labor awarded the San Diego region a $4 million grant to implement new workforce training programs for jobs in the emerging biofuels industry.  The San Diego Biofuels Initiative, a collaborative effort including CleanTECH San Diego, BIOCOM, San Diego Regional EDC, San Diego Center for Algae Biotechnology (SD-CAB) and the (more…)

Getting up to speed in cleantech is like learning a new language.  Lesson one for algae begins at the website for the San Diego Center for Algae Biotechnology (SD-CAB).  I found the Q&A to be particularly useful.

Algae lesson number two is the Algal Biofuels Symposium 2010 “The Science to Support Algal Biofuel Commercialization” to be held this Friday April 23rd at the Salk Institute in La Jolla.  This all day event features a dozen of the top experts in the field of what many believe will be the leading alternative fuel for transportation, algae biofuel.  Just $25 covers the event including lunch and a hosted reception.  Click here for details.

You will want to become a SD-CAB Associate Member.  Click here to join for $100.

For five more useful algae resources see Algae spoken here which was posted below on October 21, 2009

WEB 2.0 Summit, the by-invitation-only conclave of the internet intelligentsia was expanded this year to focus on “demonstrating proofs: showing how the founding principles of Web 2.0 have been put into practice to address the world’s most pressing problems”.  Cynthia Warner, president of Sapphire Energy, presented “High Order Bit: Burning Algae: The Green Crude Revolution”.  Her four bullet points for algae are: scalable, drop in fuel, low carbon and sustainable.  Click here for the 13 minute video of her presentation.

On the opening night of the 3rd Annual Algae Biomass Summit, I attended a roof-top soiree hosted by the San Diego Center for Algae Biotechnology.  In addition to hob-knobbing with the Shaquille O’Neal’s of algae, I also had the opportunity to compliment the founders of SD-CAB on the high quality of their website.  Getting up to speed in clean tech is like learning a new language.  Lesson one for algae begins at SD-CAB’s website.   This frequently-updated website serves a broad audience from the lay person who seeks introductory information to the industry insider who seeks direction.  I found the Q&A to be particularly useful.  You will want to become a SD-CAB Associate Member.  Click here to join for $100.

Now that you have committed yourself to becoming proficient in algae-speak, you will want to tap into other resources.  This month, the National Resources Defense Council (NRDC) published The Promise of Algae Biofuels.  It is everything you need to know in 72 pages. 

Another timely resource is provided by Stoel Rives LLP Attorneys at Law.  In nine chapters, the Law of Algae covers IP, licensing, financing, the specifics of Renewable Fuel Standard and much more.  It’s the green pathway to gold. 

To prepare for the vocabulary section of your algae SATs you can refer to the following glossaries:  U.S. Department of Energy, National Renewable Energy Laboratory, and BiobasedNews.com.  

Please chime in with your comments about any useful sources of algae wisdom.

The future of algae as a source of alternative energy is being played out in research labs and corporate boardrooms in dozens of San Diego locations.  On one special night earlier this month, San Diego invited the rest of the algae universe to come together at a location where test tubes are rarely scene.  The flight deck of the USS Midway provided a memorable venue for algae aficionados from all points of the compass to socialize before the onset of the 3^_rd Annual Algae Biomass Summit the following day.  Science, finance and politics were in attendance.  Hosted by CleanTECH San Diego, the event drew over 300.  The full-moon evening was one of the most crystal clear in memory.  Prior to the cocktail hour a press conference was held.  CleanTECH San Diego’s CEO Lisa Bicker introduced Mayor Jerry Sanders, an ardent supporter of clean technology in San Diego.  Councilman Ron Roberts and a host of algae rock stars added their support.

For the last few months the quest for biofuel derived from algae has been a hot headline.  San Diego’s prominence as the foremost algae R&D center will draw even more national attention when the 3^rd Annual Algae Biomass Summit comes to town October 7^th – 9^th.  The Algal Biomass Organization is a trade organization formed to facilitate commercialization and market development of microalgae biomass specifically for biofuels production and greenhouse gas abatement.  Attendance of about 1,000 is anticipated for the three day get-together which will include local algae heavy weights Sapphire Energy, Synthetic Genomics, General Atomics, Biolight, Kent Bioenergy and the San Diego Center for Algae Biotechnology among others. (more…)

Today was huge for the slimy green stuff in San Diego.  The United States’ two largest city newspapers, the New York Times and the Los Angeles Times, did in-depth reports about the burgeoning algae business in San Diego.  (See “Interest in algae’s oil prospects is growing” and “Algae as Fuel of the Future Faces Great Expectations — and Obstacles”).  Speculations about the commercial viability of algae as fuel, like any other scientific/business development, are purely speculative.  All the expert opinions on ESPN about the next Chargers game have no impact on the outcome of the game.  What we do know for certain about the Chargers and about algae is that the games will be played.  The question is will the championship game be played in San Diego?

Could it be that San Diego is approaching a tipping point (oozing point?) in its quest to become the world’s dominant algae biotechnology center?  At what state of maturation do we say, “now you are a cluster”?

Minds and money work best when concentrated.  Concentrated brains and bucks are common attributes of all technology clusters.  (more…)