Visit  cricatalyst.com!Nexus — Leaders in Greenhouse Systems Integration Check out more of The Buzz

The Politics of Algae, continued…

May 15, 2012
AlgaeIndustryMagazine.com

Two articles out this week deftly explore the dilemma the algae, and for that matter the http://celinachamber.org/brand-cialis entire biofuels, industry finds itself – in the wake of the House Armed Services Committee (HASC) recently passing the 2013 Defense Authorization bill (H.R. 4130) banning the Defense Department from making or buying an alternative fuel that costs more than traditional fossil fuel.

While the military itself has been an outspoken supporter of the need to have more reliable and buy real levitra online without prescription controllable fuel sources, the Republican-dominated HASC feels the greater need to bring down costs, especially the online cialis cheap premiums that the military has been paying for early-stage green fuels; costs that have helped to cover some of the biofuels industry’s development.

In Eric Beidel’s piece in National Defense Magazine he calls it the classic chicken and the egg conundrum, where the developing biofuels industry needs the military to buy big, providing a demand signal that could help reduce prices. But a lot of things have to be sorted out before the Pentagon can afford to do that.

The Navy, most recently, is paying $12 million for 450,000 gallons of biofuel to power a carrier strike group off the it's cool coast of Hawaii this year. That $26.6-per-gallon purchase is nowhere near the $2.50 the service pays for each gallon of petroleum, but is quite an improvement over a previous Solazyme contract, earlier in industry’s development (way back in 2009) when the Navy spent $8.5 million for 20,000 gallons of algae-based fuel, which works out to $425 per gallon, writes Beidel.

That price was put in perspective by Solazyme president Harrison Dillon, when asked recently by former Republican senator from Virginia, John Warner, “How much per gallon does the military pay you?”

Dillon replied, “It’s unfair to count the contracts currently being rewarded as per-gallon fuel purchases. All of our contracts with DoD…involve research, purchase of new equipment and actual production of fuel…The cost has come down in each of these contracts and we are confident that at full commercial scale we can be competitive with petroleum.”

Exemplifying the chicken-egg situation is the lack of production facilities and refineries. The Energy Independence and Security Act of viagra without perscription 2007 mandated that the country’s fuel supply include 36 billion gallons of biofuel by 2020. In 2010, the Agriculture Department reported that the United States still needed 527 new biorefineries at a cost of $168 billion to meet that mandate.

But military fuel contracts are not awarded for more than a five-year window. And building a large-scale production facility to make biofuels is an expensive proposition that requires financing. So companies are finding it difficult to http://berkley-fishing.com.au/purchase-of-cialis obtain large sources of up-front money for the www.100krefresh.com construction and operation of new plants on the basis of these short-term contracts.

Beidel concludes that collaboration will be key in moving forward. The departments of Agriculture, Energy and alamodest.com the Navy, which last year announced that they would invest up to $510 million over three years – with financial help from the private sector – to produce biofuels for both military and commercial transportation, have their work cut out for them. The Agriculture Department will focus on feedstocks, the Energy Department will take the lead on technology and the Navy will provide the market by buying the fuels.

Officials hope the effort leads to the establishment of commercial-scale biorefineries in different regions of http://arundelknights.org/overnight-levitra the country that produce jet and naval drop-in biofuels from a variety of feedstocks and processes.

In Noah Shachtman’s Wired News article, he suggests that the HASC banning the Defense Department from making or buying an alternative fuel that costs more than a “traditional fossil fuel” may be a standard almost impossible to meet; there’s almost no way the tiny, experimental biofuel industry can hope to compete on price with the massive, century-old fossil fuels business.

If the measure becomes law, he writes, it would make it all-but-inconceivable for the Pentagon to buy renewable fuels. It would likely scuttle one of the top priorities of Navy Secretary Ray Mabus. And it might very well suffocate the gasping biofuel industry, which was looking to the Pentagon to help it survive.

When Mabus took over as Navy Secretary, he declared that the service would get half of its energy from sources other than petroleum by 2020. The two-day Great Green Fleet demo, scheduled for the end of June in Hawaii, is supposed to be the biggest step yet towards that beyond-ambitious goal.

Mabus and his allies argue that the Republican committee is childrenofthesun.org taking an overly-simplistic view of things. Of course relatively small batches of a new fuel are going to be expensive. With development time and big enough purchases, the costs of biofuels will come down. Already, the price has dropped in half since 2009.

Mabus added, “We simply buy too much fossil fuels from places that are either actually or potentially volatile, from places that may or may not have our best interests at heart,” he said. “We would never let these places build our ships, our aircraft, our ground vehicles, but we do give them a say on whether those ships steam, aircraft fly, or ground vehicles operate because we buy so much energy from them.”

But the armed services committee didn’t put limits on all alternative fuels, Shachtman observes — just the ones with environmental benefits. The Energy Independence and Security Act of 2007 forbids federal agencies from buying alternative fuels that are more polluting than conventional ones. Last week, the congressmen ordered to exempt the butcherblock.com Defense Department from those regulations.

Read more:

http://www.nationaldefensemagazine.org/archive/2012/June/Pages/BiofuelsIndustryatCrossroadsasMilitaryWaitsforLowerPrices.aspx

http://www.wired.com/dangerroom/2012/05/republican-navy-biofuel/

Go to HOME Page

Copyright ©2010-2012 AlgaeIndustryMagazine.com. All rights reserved. Permission required to reprint this article in its entirety. Must include copyright statement and order viagra now live hyperlinks. Contact editorial@algaeindustrymagazine.com. A.I.M. accepts unsolicited manuscripts for consideration, and takes no responsibility for the validity of claims made in submitted editorial.

From The A.I.M. Archives

— Refresh Page for More Choices
Western Morning News reports that Westcountry scientists in the U.K. are using algae to develop an innovative new method of cleaning up contaminated mine water while harv...
Phys.org reports that, in collaboration with the Berlin, Germany LED manufacturer FutureLED, scientists at the Technische Universität München have developed a unique comb...
Tess Riley writes in TheGuardian.com about how spirulina may be able to combat malnutrition in developing countries. Spirulina is one of the oldest life forms on Earth, c...
Kevin Quon writes in Seeking Alpha about the financial plights and pivots of Solazyme, the algae industry’s most high profile recent IPO. In a year that started with a sh...
Green Star Products, Inc. (GSPI) has signed a contract to build a demonstration facility in Las Vegas, Nevada, to produce commercial quality algae. The Hybrid Algae Produ...
West Chester, Pennsylvania-based International Sustainability Group, Inc., an innovative green technology and sustainable manufacturing company, has entered the algae mar...
Fort Myers, FL-based Algenol has announced that the U.S. Environmental Protection Agency (EPA) has approved fuels made from Algenol’s process as an advanced biofuel, meet...
Nutritionaloutlook.com this month gives a well-rounded survey of how algae’s uses in food, beverage, and supplements keep expanding. Here is an excerpt: Thanks to the 201...
Using a malaria parasite protein produced from algae, paired with an immune-boosting cocktail suitable for use in humans, researchers at UC San Diego School of Medicine g...
Solazyme has announced that total revenue for the fourth quarter of 2014 was $14.5 million, compared with $11.3 million in the fourth quarter of 2013, an increase of 29%....
James Goodman writes in the democratandchronicle.com about Jeffrey Lodge, an associate professor of biological sciences at Rochester Institute of Technology, who knows wh...
Cellana, Inc., with operations in San Diego and Kailua-Kona, Hawaii, has announced that David Anton, Ph.D., has been appointed Chief Operating Officer and elected to the ...
As one of the most water-poor countries in the world, Jordan’s current water resources are significantly below the global water scarcity line. Annual rainfall falls under...
The European (FP7) algae project Sustainable PoLymers from Algae Sugars and Hydrocarbons (SPLASH) has been developing a platform technology for the conversion of third ge...