Ross BarnowskiAngela Liu

Duncan ClausonKatie Peige

Logan Stephens

Algae need resourcesClimate Water Carbon Dioxide Land

Algae Fuel

[+ Nutrients]

Site SelectionJust a few considerations: “Areas with more than 5% slope can be

effectively eliminated from consideration forsite development not only due to the intrinsicneeds of the technology, but also due to theincreased costs of site development.” – DOE2009

“Siting requirements for efficient microalgalcultivation may rarely coincide with high-volume point sources of CO2.” – DOE 2009

Site Selection – Wastewater“Wastewater treatment facilities, for

example, tend to be near metropolitanareas with high land prices and limited

land availability, and it is not practical totransport wastewater over long

distances.” – DOE 2009

Ma’alaea Oil Power Plant -Maui July 15, 2008 –

HR Biopetroleumcollaborativeannouncedplanned algalfarm adjacent toMa'alaea Plant,Maui.

Satellite imageryreveals potentialproduction site ofapproximately 50acres (enough tosupply 200-350thousandgal/year)

200 x 1000 m =50 acres

Site Selection – ChallengesTo be successful the algal fuels industry must:Carefully choose sites that balance climate, water,

carbon dioxide, land, and nutrient requirements –while ensuring and maintaining adequate levels ofeach.

Seek to integrate existing waste streams as inputstreams for production processes (CO2,wastewater and others).

Work collaboratively with government and thepublic sector to ensure public acceptance andprotect existing interests.

Technological Challenges:Immature Technologies

Raceway Ponds – Invasive speciesPhotobioreactor – High capital cost

Algae SelectionIndigenous species and/orbioengineered organismsHigh lipid productionFast growth rateStrained nutrient conditions

Other infrastructureNutrient and CO2 Sources

Wastewater? Oil Plant Emissions?

mvm.uni-karlsruhe.de

Challenges:Represents ~30% of cost of producing algal biofuelExtremely low biomass density

~1800 Gallons culture -> 1 Gallon biofuelKnown methods inadequate

Centrifugation = too expensiveHigh-temperature drying may degrade lipids

Suggested methods unproven on commercial scaleFlocculation and gravity settling

Reactions to convert lipids to biofuel existTransesterification BiodieselCatalytic Hydroprocessing Green gasoline, jet fuel, etc.

Challenges:Large, commercial scale refining facilities requiredRefining processes need to be optimized for algal lipidfeedstock

TAG

Many problems are well-defined and can be solved viatesting and applied researchMuch is still unknown about algal ecosystems

Improve lipid content and algal yieldImprove robustness of desired strain or identify beneficialrelationships between strains

Lipid extractionCreative approaches to avoid energy-intensive dryingprocess

Economic AnalysisLimits and Challenges Currently in R&D phase.

It is difficult to do an economic analysis comparing theprice of algal biodiesel to petrol-diesel since biodieselis not being marketed and sold.

Goal of the EconomicAnalysis To encourage investor confidence

The goal is to raise money so further research can beconducted.

Investors in algal biofuels in Hawaii Oil companies

Cellana LLC is a joint venture with HR Biopetroleum, University ofHawai’I, and Royal Dutch Shell Petroleum

Local companies Alexander & Baldwin Hawaiian Electric Company

State and Federal Funding NELHA - invested $100-150 million

in 2009 State and Federal Funding –

$645,000 for military jet fuel research

Source Type of Reactor BiomassCost

($/gal)

BiodieselCost

($/gal)

Benemann & Oswald(1996)

RW 0.80 1.640.49 1.00

Moline Grime et al. (2004) PBR 101.33Moheimani (2005) RW 20.33

RW 15.67 - 23.00van Harmelen & Oonk(2006)

RW1.23 4.00

Chisti (2007) PBR 1.57 5.33RW 2.00 6.83

Huntley & Redalje (2007) Hybrid 0.36 - 1.19 0.93 - 3.02Carlsson et al. (2007) RW 6.67 - 50.00Alabi et al. (2009) PBR 19.67

RW 7.13Pienkos & Darzins (2009) 25.00

7.502.50

Present account Hybrid 1.19 - 2.17 3.00 - 11.67Production Costs. RW = Open Raceway; PBR = Photobioreactor; Hybrid = RW + PBRAdapted from Williams, P. and Laurens Microalgae as biodiesel & biomass feedstocks,2010

Production Costs I

Production of algae Open raceway

Capital cost: ~$5,000 per unit Production cost: $0.80 - $50 /gal algae produced

Photobioreactor Capital cost: ~$150,000 per unit Production cost: $1.57 – $101 /gal algae produced

Hybrid Production cost: $1.19-$2.27/gal

Production Costs II CO2 source

Coal-power plant or BioEnergyHawai’i LLC, a power plant thatuses commercial waste.

• Nutrient source Wastewater treatment plant Other ingredients like insolation

(sunlight) and water are plentiful inHawaii.

Harvesting Expensive to centrifuge large

amounts of algae so research isbeing done in flocculation and acombination of both.

Production Costs III Production Costs are offset by the sale of Co-Products

From Zemke, Wood, & Dye, Technoeconomic Analysis of Algal Photobioreactors for Oil Production, UtahState University

MERA Pharmaceuticals, Inc. (Hawaiian Co.) Producing astaxanthin-based products: AstaFactor and AquaXan Photobioreactor capacity: 6,000 gallons (25,000 liters) AstaFactor is $29.95/bottle

Overall Production Costs vsPrice of Petroleum

According to Pienkos and Darzins (2009), overall productioncosts of biodiesel are: Low productivity: $25/gal biodiesel High productivity: $2.50/gal biodiesel

Compared to the current cost of gasoline in Hawaii: $2.97/gal (US average is $2.29/gal)

Compared to next most profitable oil: Palm oil: $2.50/gallon

Environmental Impacts of Corn-basedEthanol Depletion of topsoil Soil nutrients depletion Toxins from pesticides Eutrophication Contamination of ground

water Depletion of Aquifers

Less land conserved inthe Conservation ReserveProgram

High amounts of erosion Biodiversity disappears CO2 from farm equipment

Air Locally grown: emission

reductions from not having toship oil to the islands

Net Zero carbon: burned algaefuel does not add additional CO2to the atmosphere

Reduction in other emissionswhich leads to less smog andrespiratory illnesses

CO2 is recycled from powerplants

Growing algae adds moreoxygen to the air

Source:http://www.giss.nasa.gov/meetings/pollution2002/d3_kaya.html

Water

By using waste water to feed the algae, nitrogen andphosphorus can be diverted from the water bodies to helpprevent problems such as dead zones.

With a recycled source of water, water resources would notbe depleted

Land Use Algae farming takes

up considerable lessland than otherbiofuels

Algae does not needfarmable land to growso does not competewith food sources

Growing andharvesting of algae isnot harsh on the land

Social and Policy Implications Social and Policy Implications ––•Increased jobs and economic growth•Private sector investment is currently estimatedat $1 Billion•Continue to develop policy supportive of biofuels•Value of CO2 capture in a possiblecarbon market

• Reduce potential for socialstress

•Co-siting with CO2 source orWastewater treatment•Can be used on marginallands

•US and Hawaiian Renewable Energy Initiatives

•Engages multiple stakeholders (Government, Academia, and Industry)

Social and Policy Implications Social and Policy Implications ––Policy DriversPolicy Drivers