Emerging Business Model for Algae

Tuesday, February 23, 2010
Interesting. Algae can be used to reduce pollution-related costs in addition to providing energy. Given the multi-dimensional value, algae-driven energy doesnt have to be competitive w.r.t. energy sources alone but rather with a combination of existing inputs and costs (compliance, waste/pollution management, legal, and energy).

Co-location could make algae biofuels affordable
The answer? Turn the waste from other industries into a resource for this new one, helping to solve the waste problem at the same time. With or without realizing it, various scientists speaking at the American Association for the Advancement of Science annual conference, which wraps up here today, were promoting the notion that algae operations should be located next to industries that can supply one or more of the nutrient streams.

For example, algae production facilities could be located next to coal-fired power plants, which happen to be under increasing pressure and regulation to reduce CO2 emissions. Instead of spending money to sequester that carbon, say, underground, why not sell it, cheap, to an adjacent algae facility? Indeed, the Seambiotic algae plant in Tel Aviv, Israel, is tapping the flue gas of a coal plant next door.

Similarly, algae producers could locate near municipal wastewater treatment plants. "Cleansed" water that is usually deposited in rivers or other water bodies is generally safe for the environment, but still usually contains too much nitrogen or phosphorus for human consumption. Algae, however, thrive on those very compounds, and the alternative of purchasing them as fertilizer leaves a large environment footprint. Of course, the water itself is needed for algae production. A pilot plant run by Sunrise Ridge Algae in Austin, Tex., is piping in this resource from the Hornsby Bend wastewater plant there. Sunrise was hoping that enough CO2 could also be extracted from the wastewater, but the flow coming from Hornsby's anaerobic digesters was inconsistent, not a big surprise since the system was not built to supply CO2, per se.

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