ABO Blog

Some interesting news from a state that has shown serious interest over the years in cultivating a robust algae industry: Figures from a recent CleanTech Group announcement show that high-tech algae farming is attracting a big portion of the cleantech investing in Arizona.

The press release notes that clean technology venture investment in Arizona during 2013 totaled $88,202,732. In the breakout of the big companies attracting investment there is mention of Heliae‘s $28,400,000 from Salim Group, The Mars Family, and Thomas J. Edelman. That means algae attracted almost one third of Arizona’s clean technology investing in 2013.

Heliae is an algae company making great strides. They opened their first commercial facility in Gilbert, Arizona last fall, and plan further expansion in 2014. Heliae has purchase agreements already in place for the algae-based nutraceutical, personal care and other products the facility will produce.

Heliae’s innovation and hard work accounts for much of their success, but Arizona is also far along in developing a supportive ecosystem for the algae industry. In 2012 the Arizona legislature passed bipartisan changes to the tax code that put algae cultivators on more equal footing with other farmers, and the research communities at Arizona State and the University of Arizona are making enormous contributions.

We’ll be watching to see the big steps Arizona can make in 2014, and how other states stack up as more algae companies expand and march toward commercial production.

Don’t get caught at a holiday office party or family gathering without these notes on the latest developments in the algae industry! If you run into any skeptics this season, you can report confidently that 2013 was the year that algae accomplished more firsts than ever before:

Heliae opened its first commercial facility in Gilbert, Arizona, and plans further expansion in 2014. Heliae has purchase agreements already in place for the algae-based nutraceutical, personal care and other products the facility will produce.

For those that suspect algae are not ready to supply enough fuels, I point to the announcement from Algenol that their direct-to-ethanol technology is achieving annual fuel yields approaching 10,000 gallons per acre. That figure includes a range of fuels-ethanol, gasoline, aviation and diesel fuels. Algenol is now planning its first commercial facility in Florida.

For those that suspect the fossil fuel industry is skeptical, point to Sapphire Energy’s partnerships this year made with Tesoro and Phillips 66. Sapphire Energy began producing Green Crude oil from its algae farm in New Mexico just last year, and already big oil companies are seeing algae as a pathway to the future.

Cellana piled on the trend of attracting big partnerships by inking a multi-year, commercial scale off-take agreement with Neste Oil, the world’s leading supplier of renewable diesel.

Don’t forget to bring up BioProcess Algae‘s cultivation operation in Iowa, using the CO2 from an ethanol plant to produce algae-derived nutraceuticals, fish meal, fish oil replacements and fuels. Iowa’s legislature was impressed enough to pass bipartisan legislation supporting the algae industry.

Internationally, the Japanese Algae Industry Incubation Consortium coordinated with ABO as it began to look at how algae can help diversify Japan’s energy economy and provide a sustainable and safe alternative to nuclear energy.

And don’t forget to toss in a few of the incredible research and collaboration breakthroughs of the past 12 months: algae has been used to more efficiently produce cancer fighting medicine, fight malaria and capture carbon.

These are all new developments during 2013, all steps forward, and all signs that algae technology is going to continue to revolutionize production of many of the goods we consume each day.

We have a lot to celebrate as 2013 comes to a close! Best wishes in spreading the good news.

The California Center for Algae Biotechnology (Cal-CAB, previously SD-CAB) and UC San Diego Extension are offering the EDGE Biofuels Certificates again for 2014.  Applications for the certificates are open.  Enrollment in individual Biofuels courses is also an option, space permitting. The Educating and Developing workers for the Green Economy (EDGE) Initiative was started with funding from the California Department of Labor to create and launch training programs in anticipation of the growth of the biofuels and industrial biotechnology sectors. Download the program flyer here. Courses include:

• Biofuels Science Certificate (online lectures with 3-4 week summer intensive lab course at UCSD)
• Biofuels Processes Certificate (fully online program)

Information on financial assistance available can be found on the UCSD Extension website.

Last Friday Congressman Scott Peters (D-CA) introduced legislation to extend the existing tax credit for producers of advanced biofuels, such as those derived from algae. The existing $1.01 per gallon tax credit expires on December 31, 2013.  While the bill clearly cannot be considered before the end of the year, tax credits are often extended retroactively.

ABO issued on statement thanking Congressman Peters for his efforts.

In proposing the legislation Congressman Peters, who chairs the Congressional Algae Caucus, seeks to maintain a policy that has encouraged entrepreneurs and investors to develop the next generation of sustainable fuels. Continuation of this tax policy would also support ongoing commercialization efforts that are already providing new jobs and economic development while improving the nation’s energy security.

Please reach out to your Member of Congress and ask him/her to cosponsor HR 3758, the Peters 2nd generation tax credit extension bill.