1. Biodiesel From Microalgae A Solution for a Sustainable San Luis Obospo County Mike Sass Eric Amendt Ryan Gleim Tim McLenegan Tim Whitacre April 29, 2005

2. Outline Biodiesel from algae Feasibility of algae Oil collection and refining Application to our county

3. Algae Overview Tim McLenegan Eric Amendt

4. Algae and Biodiesel Algae Biodiesel is a good replacement for standard crop Biodiesels like soy and canola Up to 70% of algae biomass is usable oils Algae does not compete for land and space with other agricultural crops Algae can survive in water of high salt content and use water that was previously deemed unusable

5. Storing the Sun’s Energy (Photosynthesis) What is needed – Sunlight – CO 2 – Nutrients Storage of Energy – Lipids and oils – Carbohydrates http://www.veggievan.org/downloads/articles/Biodiesel%20from%20Algae.pdf

6. What affects oil production? Climate – Cold weather reduces algae oil production – Overcast days reduce sunlight and lower oil production Nutrients – Depletion of Nitrogen and Silicate

7. Controlling Nutrients Nitrogen – Aids in cell division Silicate – Aids in cell wall production Depleting Nutrients – Starving the algae of these two nutrients reduce the rate of cell division – Oil production remains constant – Results in an increase in the oil to mass ratio

8. The Algae Pond http://www.veggievan.org/downloads/articles/Biodiesel%20from%20Algae.pdf

9. Mass Production of Algae http://www.veggievan.org/downloads/articles/Biodiesel%20from%20Algae.pdf

10. Choosing an Algae Important characteristics of Algae – High % of total biomass is oil – Maintains a high % of oil even under stress – Compatible with the San Luis Obispo climate www.kluyvercentre.nl/content/ documents/Verslag2biodieselBaarnschLyceum.pdf -

11. What Type of Algae Botryococcus braunii – Converts 61% of its biomass into oil – Drops to only 31% oil under stress – Grows best between 22- 25 o C (71-77 o F) www.kluyvercentre.nl/content/ documents/Verslag2biodieselBaarnschLyceum.pdf -

12. Where To Grow It Extensions onto our water treatment plants – Clean up our waste and generate fuel Agriculture runoff – Exploit the county’s many farms and vineyards Soda Lake – Salt lake east of Santa Margarita – Vast open space of Carrizo Plain – Only has water in winter/spring months – National Monument status may prevent development

13. Feasibility Tim Whitacre

14. Feasibility Is it too good to be true? – DOE concluded a 16-year study of algal biomass in 1996 (and wrote a 328-page report) http://www.nrel.gov/docs/legosti/fy98/24190.pdf – Conducted large-scale tests in California, New Mexico and Hawaii With good temperatures, could harvest 50 grams of algae per sq. meter per day Used a 1,000 m 2 pond for 1 year – Research stopped due to budget cuts – UNH paper may hopefully rekindle research With more research/funding, it can be done

15. Comments from NREL “Projections for future costs of petroleum are a moving target. DOE expects petroleum costs to remain relatively flat over the next 20 years. Expecting algal biodiesel to compete with such cheap petroleum prices is unrealistic. Without some mechanism for monetizing its environmental benefits (such as carbon taxes), algal biodiesel is not going to get off the ground.”

16. Comments from NREL “Engineering design and cost studies have been done throughout the course of the ASP, with ever increasing realism in the design assumptions and cost estimates. The last set of cost estimates for the program was developed in 1995. These estimates showed that algal biodiesel cost would range from $1.40 to $4.40 per gallon based on current and long-term projections for the performance of the technology. Even with assumptions of $50 per ton of CO2 as a carbon credit, the cost of biodiesel never competes with the projected cost of petroleum diesel.”

17. http://futures.tradingcharts.com/chart/CO/M $ Per Barrel

18. Show Me The Money!!! The current price of diesel is growing What does this mean for Biodiesel?

19. Michael Briggs of University of New Hampshire Production ability – 37,500 gallons per hectare of desert land per year Pond construction – $80,000 per hectare Operating Costs – $12,000 per hectare

20. NREL results Benemann and Oswald (1996) Capital Investment – $69,000 to $104,400 per hectare Operating Costs – $21,370 to $32,320 per hectare per year Algal Oil Costs – $39 to $69 per barrel – $0.93 to $1.65 per gallon 16,000 to 32,000 gallons per hectare per year

21. Cost per hectare

23. Processing Costs $0.30 to $1.00 per gallon Without taxes or profit – Michael Briggs $0.32 per gallon of biodiesel – Real World $1.23 - $2.65 per gallon of biodiesel

24. San Luis Costs The startup costs per processing plant would be the same as noted in the fall presentation on Biodiesel. – $15,000,000 per 30,000,000 gallon plants. Our research shows that the cost per algal pond would be greater.

25. Assuming $0.10 profit per gallon Total Costs

26. Oil Collection and Refining Mike Sass

27. Pressing oil from the algae Dry the algae and press the oil from it. Can retrieve up to 70% of the oil. While drying must prevent the algae from becoming contaminated. Cheapest and simplest method

28. http://forums.biodieselnow.com/topic.asp?TOPIC_ID=3414 Chemical Oil Extraction Use hexane solvents to remove the oil. Hexane is a neurotoxin. Must be careful when using. Removes oil out of almost all things.

29. http://www.organix.net/organix/supercritical.htm Super Critical Oil Extraction Most efficient method. Uses carbon dioxide at critical pressure and temperature (CO2 is almost a liquid). Carbon dioxide. Rapid diffusion of the oil. Very expensive process.

30. http://www.nrel.gov/docs/legosti/fy98/24190.pdf TAG (triacylglycerol) Three chains of fatty acids attached to a glycerol Natural oil from the algae

31. http://www.nrel.gov/docs/legosti/fy98/24190.pdf Transesterification Start with triacylglycerol (TAG) End up with ester alcohol (biodiesel)

32. http://biodiesel.org/pdf_files/fuelfactsheets/Production.PDF Three ways to produce biodiesel Base catalyzed transesterification with alcohol. Acid catalyzed esterification with methanol. Convert the oil to fatty acids. Then acid catalyze to alkyl esters.

33. http://biodiesel.org/pdf_files/fuelfactsheets/Production.PDF Base Catalyzed with Alcohol Most common process Most economical Low pressure (20psi) Low temperature (150 o F) No intermediate steps High conversion rate (98%)

34. http://biodiesel.org/pdf_files/fuelfactsheets/Production.PDF General Process

35. Application To Our County Ryan Gleim

36. RTA Current County Bus System CCAT and SCAT

37. Fuel Requirements

38. Biodiesel Requirements Using Biodiesel in current diesel busses

39. Diesel Hybrid GM Hybrid Bus

40. http:www.gm.com/company/adv_tech/300_hybrids/index_bus.html Hybrid Bus Statistics GM Hybrid Bus – E P system – Clean Hybrid technology – Hydrocarbon and carbon monoxide reduction of about 90% – Nitrous oxide reduction of about 50% – Already in service in many cities – Up to 60% improved fuel economy

41. Calculations Adjusted Using Biodiesel in HYBRID diesel busses

42. Conclusion Algae is a very efficient means of producing biodiesel The oil production from algae farms is feasible and scalable Further research necessary to unlock full potential of algae

43. Questions