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.

“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.

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 prosper and innovate; it will also be necessary to ensuring that tomorrow’s advanced biofuels companies have access to a highly-trained workforce. As an industry, we have the responsibility to help foster the creation of that new generation of biofuels innovators.

It’s no secret that the United States has lagged behind other countries in recent years in the field of science, engineering and math. Both the public and the private sector have gone to great lengths to try to encourage and inspire today’s youth to choose careers in these fields. I believe that the biofuels industry has the unique ability to drive today’s youth into careers into these disciplines. Why?

The sex appeal of sustainability

Today’s youth are more concerned about global sustainability than any other generation before it. Recent studies of the so-called millennials – those born from 1981 to 2000 – point to a generation that is more open to changing habits and behaviors to reduce environmental impact. They are more interested in authenticity than spin. And they are more interested in making a positive impact in the world than material gain. As The New York Times reported in a recent story on this generation’s interest in sustainability and clean technology, “Suddenly, ‘sustainability’ seems to resonate with the sex appeal of ‘dot com’ or ‘start-up,’ appealing to droves of ambitious young innovators.”

But in order for our industry to continue to attract these ambitious young innovators, we need two things. First, we must have continued federal investments in research at all levels.  Second, we need public-private partnerships between leading biofuels companies and research institutions to provide internships, bench experience and other opportunities for students at every level.  Such practical experience often converts interns to employees. Employees become advocates, experts and innovators, creating further demand for these skill sets. And when that happens, we can energize existing and next generation scientists and researchers to devote their careers to our industry.

How partnerships for education work

What might such a partnership look like? Fortunately for us, there are already some exciting examples of collaborations happening today that are creating a biofuels workforce for the future.

In San Diego, one of the country’s centers for the development of algae-to-biofuels technologies , a program called the Educating and Developing Workers for the Green Economy (EDGE) Initiative is helping to ensure that the region’s burgeoning biofuels industry has access to a highly trained, world-class workforce. Funded through the state of California and the Federal Workforce Investment Act, the training program is being developed by the San Diego Center for Algae Biotechnology, with CleanTECH San Diego helping to integrate the program with the region’s commercial biofuels sector.  The program is training the next generation of advanced biofuels leaders, including technicians, Ph.D.-level researchers and scientists, and engineers.

I look at this opportunity through a few lenses. As the executive director of the trade association for the US algae industry, I know we must find ways to populate today’s and tomorrow’s algae companies with the best and the brightest minds our country can offer.

As a concerned citizen, I know we must find ways to develop new domestic sources of energy while preserving our existing transportation infrastructure. And last, as a parent, my hope is that my own children will not only be inspired to pursue opportunities in clean energy, but will also find plentiful options awaiting them in the future.

Mary Rosenthal is the Executive Director of the Algal Biomass Organization.

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 San Diego Workforce Partnership, captured the grant.  The San Diego Biofuels Initiative’s proposal, titled the Educating and Developing Workers for the Green Economy (EDGE Initiative), will provide education, training and placement services to unemployed and dislocated workers within San Diego and the Imperial Valley.

Also on Tuesday the Governor’s Office of Economic Development designated the San Diego region as a California Innovation Hub.  The designation clears the way for the San Diego iHub Consortium to apply for stimulus funds from the Federal government.  The consortium has identified biofuels, wireless health and solar power/energy storage as the three areas of greatest job growth potential.

On Monday the San Diego Center for Algae Biotechnology (SD-CAB) announced that the region will receive funding of $9 million from the Department of Energy for algae R&D.  A team of seven companies including locals Sempra Energy, General Atomics and Sapphire Energy are adding another $3 million to support the R&D effort.

CleanTECH San Diego’s website lists 37 Biomass Energy & Biofuel local companies in their company database. 

On July 20^th CONNECT presents Algae Biotechnology: Working to Transform Fuel, Food and Medicine with Stephen Mayfield, Director, San Diego Center for Algae Biotechnology and John Dove Isaacs Chair of Natural Philosophy Department of Biological Sciences, UC San Diego.  Click here for details.

Two new algae resources

National Algal Biofuels Technology Roadmap, a 140 page report just released by U.S. Department of Energy Office of Energy Efficiency and Renewable Energy Office of the Biomass Program.  (This PDF file is 7 MB).

Also new is a report from the Milken Institute, Scaling Enterprise Finance, The Future of Biofuels, which addresses the question, “How can we facilitate the flow of private capital into the production of biofuels?”  Please e-mail me at glenn@glennmosier.com for a PDF copy of this 40 page report.