Is filling up your car with algae fuel a decade away?

The prospect of tapping pond scum for fuel may not be so far off.

While significant hurdles remain -- algae-produced fats aren't as readily transformed into energy as, say, the Beverly Hillbillies' Texas tea -- many have joined the pursuit of commercialization and a recent study says plants could come on line in the next four to six years producing product competitive with conventional fuels.

Imagine driving down to the corner quick-rip grocer and filling it up with a little homegrown green.

A decade from now that might be possible.

Boulder, Colo.-based Pike Research reports that by 2020, "production of biofuels derived from crude algae oil will reach 61 million gallons per year." Writers of the Pike Research report, industry analyst Mackinnon Lawrence and Pike President Clint Wheelock acknowledged the amount was "barely a drop in the bucket for biofuels" but said the potential production would represent a market value of $1.3 billion.

Algae research taps electricity, fuel and saving the world

Algae is more than just pond scum.

It's a potential power source. The green glop that forms in fetid pools and in nutrient soaked ground fed by overflowing septic systems increasingly is being investigated for properties beyond the "ugh" factor.

At Stanford University, a team of scientists has figured a way to extract a tiny portion of electrical current from algae cells. Gwyneth Dickey at the Stanford News Service wrote that the team was "able to draw from each cell just one picoampere, an amount of electricity so tiny that they would need a trillion cells photosynthesizing for one hour just to equal the amount of energy stored in a AA battery."

The power comes from photosynthesis, the process through which a plant converts sunlight to energy.

Dickey quoted WonHyoung Ryu, the lead author of the paper published in the March issue of Nano Letters, as saying he believes the Stanford team is the first to extract electrons from living plant cells. However, Ryu said there is a long way to go to put such power generation to any commercial use. "We're still in the scientific stages," he said.

However, in Nano Letters, he offered a more effusive account: "This result may represent an initial step in generating 'high efficiency' bioelectricity by directly harvesting high energy photosynthetic electrons."

Serious payoff: Vegas ought to bet on clean energy

Spending time in Vegas gave me an opportunity, yet again, to experience the power of the almighty dollar.

But it's not the gambling I'm referring to. Although the din of the slots, cries of anguish at the craps games and cool stares from packed blackjack tables are something to behold.

No, it's the Vegas thirst for electrical power that gets me thinking. Massive voltage travels from the grid into the various mini cities on the Strip -- like the new Palazzo resort hotel, which with the Venetian has about 8,000 rooms. That energy flows into the MGM Grand, Caesar's Palace, the Flamingo and all the rest. Just the air conditioning bill would crush a third-world country. Toss in the rest of the operations, high-definition billboards and lighting that can be seen from the space shuttle, and it's enough to keep Nevada Power Co. one of the most stable and profitable investments of all time.

But imagine this: What if Vegas went big for alternative energy and energy efficiency? It's a risk, sure. But where else can you bet on a Wizard of Oz slot, get beer delivered and take a leak just 10 paces away? Vegas thrives on risk.

And while energy efficiency retrofits have proved their value, renewables still have a way to go. For instance, Forbes' Devon Swezey predicts a clean tech crash. "The reason is simple," Swezey writes. "Clean energy is still much more expensive and less reliable than coal or gas."

And the economy bites, subsidies are dying and public sector budgets look like a two-egg breakfast left overnight outside in the hall at the Paris. So what?

California utility gears up for alternative energy

The Modesto Irrigation District is gearing up for clean energy in a big way and is closing in on its mandated California renewables requirement.

The small central California utility has built a modern power plant that has the flexibility to support the more sporadic energy generation supplied by the region's wind turbines and solar installations.

"Our projected 2012 green energy mix is 26 percent wind and 2 percent other green resources," says Melissa Williams, MID spokeswoman.

Williams says the "other" category includes Fiscalini Farms’ methane gas digester, which powers the specialty cheesemaker's operation and about 300 homes, and solar.

MID supplies power to an area dominated by Modesto, the largest of its communities with a population of about 201,000. Its service area includes smaller communities of Salida, Empire, Waterford, Mountain House and parts of LaGrange, Riverbank, Ripon, Escalon and Oakdale.

Williams says MID has "actively pursued and procured green energy" to comply with California’s mandated renewable energy portfolio standard of 33 percent renewables by 2020. Other utilities in California, including Pacific Gas & Electric Co., Southern California Edison and Sacramento Metropolitan Utilities District, also are vigorously pursuing the clean energy requirement.

Biodiesel industry keeps rolling

Rich Gillis is selling his biodiesel plant.

But Gillis, president and chief executive of Watsonville, Calif.-based Energy Alternative Solutions Inc., intends to stay in the business. Once the sale is complete, he plans to focus on development of marketable biofuel crops like camelina, which requires very little water and has been grown successfully in the San Joaquin Valley.

"Biodiesel is taking off," he says. And camelina, which is harvested for its seeds, has a bright part in that future, he adds.
The biodiesel business certainly isn't putting the petroleum companies out of business. In fact, the market remains relatively limited with most sales going to fleets or established customers. However, its niche is extensive with more than 600 fleets using biodiesel blends in their vehicles and the military testing it as a 50 percent additive to jet fuel.

Gillis says he sees the fuel as an intermediary that will serve to ease dependence on petroleum until a substitute can be found. And that may take awhile.

The EPA has forecast through its Renewable Fuel Standard program a target of about 1 billion gallons of biomass-produced biodiesel this year. In 2006, 250 million gallons were sold, with more than 900 million projected to sell in 2011.

The EPA says biodiesel can help reduce U.S. dependence on foreign oil and provide greenhouse gas emission reductions: "It reduces emissions of carbon monoxide, particulate matter and sulfates, as well as hydrocarbon and air toxics emissions."

Derek Mead of greentechmedia.com calls biodiesel the workhorse of the biofuel sector. He writes that the "market is projected to continue to increase production and is still a stable sector."

Gillis' plant, which sits near the central coast in Gonzales, Calif. just south of Salinas on Highway 101, recycled 150,000 pounds of waste vegetable oil into biodiesel each week and has been on line since 2007. Over its history, the plant has produced more than 1 million gallons.

Biodiesel can be produced from vegetable oils, animal fats and used restaurant grease.

Gillis says the plant was built by Pacific Biodiesel, headquartered on Maui, Hawaii. "They are one of the oldest producers of biodiesel fuel and production plant builders in the country," he says.

Gillis says he'd like to see the plant bought and relocated to the nearby San Joaquin Valley where it would be close potential fields. He says "parties interested in relocating the plant to the San Joaquin Valley will be given a credit with a cap for the cost of disassembly and transport of the plant."

Gillis says that although a $1 per gallon tax credit wasn't renewed by Congress, renewable fuel credits are available through the U.S. Environmental Protection Agency "and remain an excellent source of support for producers of biodiesel. Cap and trade will also have a positive effect on the industry."

The tax incentive was enacted in 2004 as part of the American Jobs Creation Act and expired at the close of 2009.

The National Biodiesel Board says the industry generates substantial economic benefits. In 2008, the U.S. biodiesel industry supported 51,893 jobs, added $4.287 billion to the economy, and generated $866.2 million in tax revenue, it says.

Gillis says the elimination of the tax credit either eliminated or temporarily shuttered about half the jobs in biodiesel.

Gillis believes in biofuels and would like to see more jobs developed. He'd also like to find a buyer for his plant -- although he may have a line on it with a couple interested parties. He's got a list of the equipment for those who would like to know more. Price is negotiable, the list says.