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Future Fuels - Algae

Norman M. WhittonChE 359/3846 November 2008

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Norm Whitton

BChE, BChem, Univ of Minn 1982MBA, Univ of Houston, 1985Petroleum and Chemical Industry

12 years at Conoco and DuPontManagement Consulting

10 years at Arthur D. LittleEntrepreneur

4 years starting new businesses in oil, refining and biodiesel

Algae Entrepreneur3 years in Austin, collaborating with University of Texas

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Sunrise Ridge Operations

University of TexasAlgae selection / cultureSpecies engineering Separation

City of AustinPilot plant sitePotential expansion

State of TexasETF investment

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Future Fuels - Algae

Commodity Production of AlgaeThe Promise of AlgaePhotosynthesisGeneric Production ProcessesAlgae SpeciesCommodity Products

Current State of TechnologyEnvironmental and Regulatory IssuesEconomic Feasibility ModelsQuestion and Answers

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How Fast ? How Bad?

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Peak Oil 3Q2005 – Cantarell Field

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More Problems

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Renewable Liquid Fuels

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Why We Like Algae

Doesn’t compete with food

Reduces greenhouse gas

Does not require arable land, rain or irrigation

Oil Yield, Gal / Acre / Year

0

2000

4000

6000

8000

10000

Future Algae

AlgaePalm

Jatropha

RapeSoy

Sunrise Ridge Technology Focus

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Algae – Drive Train Compatibility

Algal Oil – Conventional Diesel Drive TrainsPotentially compatible with existing liquid fuel industryCrude oil pipelinesBiodiesel or traditional petroleum refineriesProduce diesel fuel, which is in short supply worldwideWide application in trucks, cars, rail, ships; possibly to aircraftLittle or no change required for end-users

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Value Chain

Oil FieldOil Field RefineryBlending and Distribution

Animal Feed Mill

Biodiesel Plant

Algae FarmAlgae Farm

OilOil

ByProductByProduct

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Photosynthesis

1-3% efficient

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Photosynthesis

BiomassH2O + CO2 + ~8-10 hv (CH2O) + O2

Redfield Ratio106 Carbon

16 Nitrogen1 Phosphorus

Silicon (diatoms)

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Micronutrients

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Cell Division and Growth

Exponential Growth

Typically matched to diurnal cycleOne to six divisions per day (doublings)

Exponential

Stationary

Lag

Time

Cul

ture

Den

sity

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Solar Algae Production Process

Species + Nutrients

Water

Solar Algae Farm

Separations &

Processing

Waste Treatment

Product LogisticsCO2

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Fermentation Processes

Species + Nutrients

Water

Dark Algae Tanks

Separations &

Processing

Waste Treatment

Product LogisticsSugar

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CO2 - Electric Conversion

Species + Nutrients

Water

Algae PBR

Separations &

Processing

Waste Treatment

Product LogisticsCO2

Electric Lights (LEDs)

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Algae Species• Estimated fifty thousand to hundreds of thousands of species• High genetic diversity, rapid mutation rates• Ubiquitous• Range in size from 2 microns (cyanobacteria) to macro (kelp)

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Algae Species

Neochloris alveroteras

Botryococcus brauneiiAnkistrodesmus arcuatus

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Cell Components• Cell walls and membranes

• Fatty acids• Sugar / protein binders• Silica (diatoms)• Not much cellulose

• Nucleus• Sugars and nucleic acids

• Proteins

• Pyrenoid• Starches and sugars

• Organelles• DNA, proteins, cell membranes

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Algae Products

HawaiiCalifornia (Salton Sea)New MexicoIsraelSoutheast Asia

Vitamins (A, B)Omega 3 Fatty AcidsDyesDrugs

TriglyceridesMixed OilsCarbohydratesProteins / Amino AcidsEthanol / Lactic AcidOther Chemical FeedstocksAnimal Feeds

Health supplementsSpirulinaChlorella

PigmentAstraxanthin

AquacultureSea bassShrimpMussels / Abalone

SpecialtiesCommoditiesCurrent

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Future Fuels - Algae

Commodity Production of AlgaeCurrent State of Technology

Algae Species Selection and EngineeringGreenhouse Systems (Open, Closed, Hybrid)DewateringProduct Separations

Environmental and Regulatory IssuesEconomic Feasibility ModelsQuestion and Answers

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Algae Selection

Local collectionAlgae culture collections

UT, Maryland, California, Hawaii, Japan, UKRapid screening and sequencingDesired properties

Oil productionGrowth rateSize / Harvesting Predator and disease resistance

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Oleaginous Green Algae (ASU)

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Genetic Engineering Targets

Solar efficiencyOil productionHarvesting Predator and disease resistance

ButMutation ratesEvolutionary success vs environment

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Growth Based on Temperature

Absorbance by Temperature

0.000

0.050

0.100

0.150

0.200

0.250

0.300

0.350

0.400

0.450

18.6

21.6

24.4

27.3

30.2

32.9

35.9

38.5

41.4

18.6

21.6

24.4

27.3

30.2

32.9

35.9

38.5

41.4

Neochloris oleoabundans Botryococcus braunii

Temperature (°C)

Abso

rban

ce Hour 0Hour 0Hour 45Hour 93

— Hour 0

— Hour 45

— Hour 93

UTEX #1230 Absorbance by Temperature

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

21.6° 25.6° 29.0° 32.5° 35.2° 38.6° 41.5° 44.2° 47.1°

#1230 Chlorella sorokiniana

Temperature (°C)

Abso

rban

ce

Hour 0Hour 19

Results•Strain 1 grew maximally at 30-33°C and growth ceased past 36°C•Strain 2 grew fast from 35-42°C and growth ceased past 45°C•Strain 3 grew well between 29-35°C and growth ceased past 39°C

AFC Absorbance by Temperature

0.0

0.1

0.2

0.3

0.4

0.5

0.6

21.6° 25.6° 29.0° 32.5° 35.2° 38.6° 41.5° 44.2° 47.1°

Algae Farm Chlorella

Temperature (°C)

Abso

rban

ce

Hour 0Hour 49

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“Greenhouse” Systems

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Ponds

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Raceways

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Horizontal Closed Systems

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Vertical Closed Systems

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Light Conversion

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Species Control Failures

Bi-Culture of our desired species + blue-green cyanobacteria (filaments)

Native species + Vorticella(predator)

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Species Control Strategies

Accept whatever falls inMake the environment specialized

SalinitypHTemperature

Closed greenhouse, physical barrierPeriodic sterilizationSmall, stable, symbiotic ecology

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System Productivity

ShadingEvaporative coolingHeated / chilled water

Physical barrierSterilization protocols

100-150Closed vertical system

MixedNutrient starvation20-40, but higher oil content

Hybrid

Evaporative cooling barrier gives longer growing seasonExternal evaporative cooling required in summer

Physical barrier Salinity pH

40-60 Closed horizontal system

NoneVia salinity or pH20Open Raceway with mixing and CO2 addition

NoneNone0-5High Rate PondCO2 addition

NoneNone0-2Natural pond

Temperature ControlSpecies Controlg / m2 / dType

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Dewatering

“It looks like green paint to me!”

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Too much cost…

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New Tech Harvesting – Fish Poo

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Lysing

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“Traditional” Extraction

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Oil Content & Quality

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Other Conversion Options

AcidolysisFermentationGasificationDrying / PelletingAnaerobic Digestion

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Future Fuels - Algae

Commodity Production of AlgaeCurrent State of TechnologyEnvironmental and Regulatory Issues

WaterSpeciesGenetic Engineering

Economic Feasibility ModelsQuestion and Answers

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Water Issues

Saline systemsMake up water sourcesSaline water disposal

Non-saline systemsMake up waterDischarge to aquifer / aquifer qualityDischarge permits (nutrients N, P)

Large-scale farm disturbance of surface flow and aquifer recharge

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Non-native species

Invasive “pests”Texas “black list” regulations – Parks & WildlifeGlobal transportMutation and adaptationProving “Harm”Proposed “white list” regulation

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Genetically Engineered Species

Fitness improving featuresGrowth ratesPredator resistanceToxics

Fitness reducing featuresOil contentOther “toxic” productsProduct export outside the cell

Testing?Deployment?

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More regulation issuesDownstream solvent extraction / processing emissions & wastePlastic recyclingLand use and zoning

“Look and feel” of the farmsFlat land is relatively scarce – how to use contour?

Radio waves / spectrum for radio-controlled equipment in the farms

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Future Fuels - Algae

Commodity Production of AlgaeCurrent State of TechnologyEnvironmental and Regulatory IssuesEconomic Feasibility ModelsQuestion and Answers

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Challenges…

Cost: Commodity products from algae have relatively low value We must be very low in cost (capital and operating)

Scale: Sunlight is a dilute source of energy; and it’s variable We need enormous scale to make a difference (1 MMBPD ~ 1-2,000,000 acres)

Yields: Algae convert 3-4% of sunlight to biomass, which might be only 30%-40% oil.Our production systems need to maximize desirable products and revenues.

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More challenges…

Siting:Microclimates and repeatabilityCO2 source?Water and nutrients source?Land – and lots of itGet everyone to agree without destroying the project

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Orders of Magnitude…

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Techno-Economics - Assumptions

Revenue / PricesOil prices $40 – 200 / bblCarbon credits $2 – 40 / tonByproduct values $30 – 300 / ton

YieldsBiomass production rate 25 – 200 g / m2 / dayOil content 3% to >60%

Costs“Greenhouse” $0.50 - >$10 psfSeparations 0.02 - $20 / gal (product)Feedstocks / Inputs Site and process specific

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Techno-Economics - Targets

Based on our models for an “interesting”project at reasonable revenue assumptionsTargets include:

Biomass yields > 75 g / m2 / day ANDOil yields > 30%

Greenhouse cost < $2.00 psf, all in ANDSeparation cost <0.40 / gal oil, all in ANDByproduct is recovered and sold at feed value

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Target Markets

Price,$/Ton

Size, $Bn / yr

Renewable Diesel (2015)

45% Protein

1000

500

10 0 10

Vegetable OilVegetable Oil5050--70% Revenue70% Revenue

Animal FeedAnimal Feed3030--50% Revenue50% Revenue

Bio

dies

el

Ole

oche

m

65%

Pro

tein

0

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Challenges to Algae Commercialization

Techno-economicsObtaining InputsEffective OperationsObtaining PermitsPenetrating MarketsCreating Confidence

How do we make it happen?

How do we How do we make it make it happen?happen?

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Future Fuels - Algae

Commodity Production of AlgaeCurrent State of TechnologyEnvironmental and Regulatory IssuesEconomic Feasibility ModelsQuestion and Answers