Oil from Algae

Organic Fuels Algae Technologies is developing technologies to realize the promise of algae as a cost-effective renewable fuel source. At the core of these technologies is a unique proprietary oil extraction technology that removes the oil from the algae by destroying the cell wall electromechanically. Together with complementary technologies also in development, a complete oil-from-algae solution is provided, from the growth of the algae through the final oil output, which can then feed biodiesel production.

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The Problem

Algae are among the most promising next-generation sources for biofuels. They grow quickly, they use solar energy efficiently, and their use for fuel production does not compete with the human food supply. But extracting the oil from the algae cost-effectively is a substantial challenge. The traditional methods for extracting oil from seeds are generally ineffective at the nanometer scale of algae cells. Instead, extracting oil from algae typically involves drying the algae, breaking down the cell walls with a solvent, then removing the solvent and biomass to leave behind the oil. Because these methods require large amounts of energy, large volumes of water and hazardous chemical solvents, they are ultimately too expensive and too environmentally unsound to be viable for large-scale fuel production.

The Solution

To overcome these problems, our technologies remove the oil from the algae by breaking down cell walls using electromagnetic forces, thereby eliminating energy-consuming drying stages and the use of hazardous solvents. This low-energy method works well in dilute concentrations, but higher concentrations yield oil even more efficiently. To take full advantage of this, our system pre-concentrates the algae, using arrays of photo-bioreactors in series as well as in parallel. By concentrating the algae between reactors in series, reaction stages can be adjusted to maximize production efficiency. Patents are being pursued for the key technical innovations in this system.

The combined production capacity of the world's biodiesel refineries is currently about five billion gallons per year. To produce enough algae to make that amount of biodiesel would require 250,000 acres of algae — about half the size of the city of Houston. With yields as high as 20,000 gallons per acre per year, biodiesel from algae is a $25 billion opportunity.

The Next Step

Organic Fuels Algae Technologies enters the algae biofuels market as a joint venture of Organic Fuels and the University of Texas. The company was formed to commercialize the oil production system developed at UT’s Center for Electromechanics under a research program funded by Organic Fuels. With an extraction unit targeted for completion by the end of 2009, commercial deployment is expected to be achieved within two to three years.

About UT’s Center for Electromechanics

The Center for Electromechanics is a research center at the University of Texas at Austin. It conducts significant research and development in such energy fields as plug-in and other hybrid vehicles, hydrogen as a fuel, efficient motors and generators, algae biofuels production, wind power, flywheel energy storage and advanced power system controls. The Center’s algae program focuses on applying new technology to drive down the cost of producing biodiesel from algae. The intellectual property describing this technology is included in the OFAT technology portfolio.

Going Forward

With a production unit in development, patents underway, and a clear path toward the marketplace, the company has commenced raising $4 million from strategic and financial investors to build a commercial prototype system and to build out the business capabilities of the company. Additional funding will be required to staff up OFAT and create a fully operational commercial entity. Contact us to discuss opportunities to enter this rapidly-developing market.

Organic Fuels:

UT Center for Electromechanics: