One acre of corn can yield about 28 gallons of oil in one year. In more tropical regions, an acre of palms can yield about 6,700 gallons of oil per year. But algae are in a class all their own. An acre of algae can yield anywhere between 20,000-100,000 gallons of oil per year.

This is possible because algae really do grow like weeds. An alga plant can completely reproduce up to six times per day. Try doing that with corn, which takes an entire season to grow.

The sad thing is that the powers-that-be used to have a true interest in algae’s potential. The Dept. of Energy researched its viability for almost 20 years before canning the program in 1996. They were certain algae couldn’t compete with oil at $20 per barrel.

But now public sentiment is shifting in alternatives’ favor. Never mind oil’s recent plunge — businesses and the public are craving better ways to power their buildings and vehicles.

More Potential Than Pipe Dream

We’ve noticed that algae oil has received some press recently — in the most unlikely of places. The December issue of Esquire actually ran an informative two-page spread on algae oil and its potential.

Algae oil is becoming a more viable energy option every day as additional money is pushed in its direction. In fact, venture capital money is finding its way to algae oil technology developers at a rapid pace.

The private startup Sapphire Energy, which is perfecting synthetic algae technology, has scored more than $100 million in private financing. This even includes money from Cascade Investment, an investment holding company owned by Bill Gates.

Even with oil’s recent dip below $40, work on algae fuel continues at breakneck speeds.  Several small companies are vying for the lion’s share of the algae fuel business.  The winners stand to make their early investors very wealthy.

Best,
Greg Guenthner

December 26, 2008

The Alternative Fuel That’s Growing Exponentially was originally featured in the Penny Sleuth.