Algae Biofuel Startup Is Expanding Operations in New Mexico

09 Apr 2012: Algae Biofuel Startup
Is Expanding Operations in New Mexico

A U.S. startup says it has raised enough funding to significantly expand what it calls the world?s first commercial-scale algae biofuel farm, a 300-acre project its developers say could produce 1.5 million gallons of algae-based crude oil by 2014. Sapphire Energy, which so far has received more than $300 million ? including U.S. government funding ? to develop its technology, has already begun building the plant in New Mexico. While many consider algae-based oil a promising fuel alternative since it can produce large amounts of oil without consuming fresh water supplies or farmland, the technology has not been shown to work on a commercial scale because of costs. Sapphire Energy hopes that by reducing the production costs at every stage of the process ? from construction of the algae ponds to harvesting ? it will be able to produce a product that?s competitive with oil priced at $85 per barrel within six years. Recent studies by the National Renewable Energy Laboratory found that the larger-scale production of algae-based diesel through scaled-up versions of existing technology would cost several times more than conventional diesel.

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