 History of biofuels  Inconsistencies with biofuels?  Projects  Algenol Company  Sapphire Energy Company  Where biofuels are now  Trends that will shape the future

 The engine?  Rudolf Diesel invented his engine to work primarily with vegetable oil  Henry Ford intended his Model T to run on ethanol (grew up on a farm….)  Forced out by the supply, price, and efficiency of petroleum.  Events to come back to biofuels  1970: Passage of the Clean Air Act  Allows EPA to regulate emission standards…  Amended in 1990  1973: Arab oil embargo  1978: Iranian Revolution  August 1982: International Conference on Plant and Vegetable Oils  1992: Energy Policy Act passed by the EPA  Increased use of alternative energy by the US government  Amended in 1998 specifically included biodiesel

 Will destroy food supply  It will increase emissions  Clear cut for increase crops  Increase food prices  Less crops for food  “Will complicate and worsen a number of social and environmental problems”  Oil Change International ARE THESE THE FACTS?

BIOFUELS MADE FROM ALGAE  Decrease food supply? We don’t eat algae  Increase emissions by clear cut?......No clear cutting is needed  Increase cost of food?……covered that already  I fail to see how fuels will put a strain on social and ecological systems

 Algenol’s new idea?  Developed the technology in 1980’s  Began commerical effort when crude hit $50 barrel (2006)  As of 1/6/11, crude is $135 a barrel  There are over 10,000 strains of algae  Algenol does not cultivate its algae  It siphons produced ethanol by its bioreactor tubes How does Algae produce biofuel? Wastewater + CO 2 + Sunlight + Algae = Ethanol + Biodiesel + Other Products That Used to Use Petroleum + WATER (is used to grow the algae) Bottom line: Algae is 100% renewable with no harmful effects on the environment and is closed looped

 $850 million to build an algae farm in the Sonoran Desert  Ethanol at constant $3 per gallon  Aim to produce 6000 gallons per acre per year  Production begins by the end of 2010  Production costs = 85 cents per gallon  By 2012 – 1 billion gallons annually

 Sapphire Energy in New Mexico  Why New Mexico?  Flat desert conditions  High level of sunlight  Large amount of underground salt water  100% renewable resource  Received $104.5 million (federal funding)  $50 million from Department of Energy  $54.5 million from Department of Agriculture  Private investors?  Wellcome Trust  Cascade (owned by Bill Gates)  Venrock (Rockfeller)  ARCH Venture Partners

 300 acre integrated algal biorefinery  1 million gallons of diesel and jet fuel per year by 2011  100 million gallons by 2018  1 billion gallons by 2025  SO WHERE DOES THAT LEAVE US?  Assuming that efficiency does not play a role…  Biofuel mixed with petroleum so an accurate comparison is difficult  U.S. ENERGY INFORMATION ADMINISTRATION (numbers are not strictly transportation)  42 gallons = 1 barrel  6.85 billion barrels of oil in 2009  6.99 billion barrels of oil in 2010  BILLION GALLONS PER YEAR

 Biofuels play a minute role in the grand scheme  Oil price increase, increase investment in biofuels  Critics to biofuels?  Don’t know the facts yet still attempt to derail efforts  Businesses will invest?  New jobs!!!!!!  750 jobs to build the algae farm (Sapphire)

 Biodiesel can run in a standard diesel engine with no modifications to the engine (Bioethanol as well)  Oil companies will have to take a risk  Decreasing oil supply vs. unlimited algae supply  Political pressure?  Nothing is going to change with the current infrastructure…  Social change is necessary?  Hummer and “soccer mom” van?  Bigger is not always better… So what does the future look like…? o ECONOMIC TRENDS!!! o As gas prices increase (due to the supply of oil decreasing) consumers will want to by cheaper fuel…the fuel of the future

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