Would you invest in Algae-based oil?

The demonstration facility in Australia includes six one-acre raceway ponds, four 400-square meter ponds, and four 50-square meter ponds. Aurora Algae was awarded a $2 million grant by the Australian government under its Low Emissions Energy Development Fund to support the project. To date, the company has received $750,000 of the funding. McDonald said benchmarks that have been achieved to date will enable the company to collect an additional $1.1 million within the next two months. The $150,000 balance will be paid out in the future, as Aurora Algae works to develop its first commercial location.

While McDonald was unable to release specific information on the algae strain that is being employed by his company, he did note that it is a salt-tolerant variety that has been specifically selected and optimized for its high lipid content.

Aurora Algae currently expects to begin construction of its initial commercial-scale algae production facility in early 2012. According to McDonald, the facility is scheduled to be operational by 2013. Aurora Algae initially plans to partner with companies that will utilize its algae for the production of biofuels, omega-3 fatty acids, and animal feed. However, McDonald notes that the company may choose to process its own algae into end products in the future.

The first two most difficult things about using algae as a feedstock for biofuels is 1) growing algae and 2) growing a lot of algae.

But growing some algae isn?t THAT difficult, it?s really just complicated. Solix BioSystems is aiming to solve that problem by marketing a complete system that will get you up and running. The system has a culture capacity of 4000 liters. Which gives the algal entrepreneur a test bed and growth area for one or more of his or her favorate strains. The outdoor arrangement grows algae in large narrow plastic bags suspended in a pool of water, with CO2 bubbles (and sunshine that you supply) to feed the algae.

It is interesting to note the additional support structure included to keep the algae growing and content. The support system trailer handles preparation, dosing, harvesting, cleaning? and features ?programmable sparge timing.? I don?t know what the cost would be to scale up this sort of system, but it seems it may be expensive.

So, growing algae ? check. Scaling up ? unknown. The second set of challenges includes separating the oil from the water and the algae. Origin Oil, which makes a very different sort of photobioreactor, has an answer for this one. I can?t explain it, but the video reminds me of a lava lamp and is very groovy.