Oil giant Exxon Mobil is joining with Synthetic Genomics Inc. to research and develop next generation biofuels, using photosynthetic algae. Algae convert carbon dioxide with energy from the sun into cellular oils, even long-chain hydrocarbons which can be processed into fuels compatible with gasoline and diesel and industrial chemicals using existing refining techniques.
Exxon expects to spend more than $600-million if research proves up a feasible process, paying SGI up to $300-million as specific milestones are reached. SGI founder, Craig Venter of genome sequencing fame, has found an algae that converts CO2 to methane and another that does the same with coal. His San Diego lab has engineered superior strains of algae for large scale, continuous process production in ponds or in tube arrays.
Exxon estimates algae could yield 20,000 litres of fuel per hectare annually but company senior VP, Michael Dolen, says significant work and years of research and development must still be completed.
UK's Carbon Trust forecasts that algae-based biofuels could replace 70-billion litres of fossil fuels by 2030 or 6% of road transport diesel. Algae growth can take place in areas not useful for crops and in less space than needed for corn or palm oil in water that does not have to be clean or fresh.
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