Category: Press

Modest changes in federal tax policy would address significant barrier to commercialization of algae-based fuels and help spur job growth

WASHINGTON, D.C. – March 4, 2010 – The Algae Biomass Organization (ABO), the leading trade association for the industry, today urged Congress and Senate Finance Committee Chairman Max Baucus (D-MT) and Ranking Member Charles Grassley (R-IA) to adopt an amendment offered by Senators Bill Nelson (D-FL), Mike Crapo (D-ID) and Jeff Bingaman (D-NM) to the “Tax Extenders Act of 2009” (H.R. 4213) that would ensure algae-based fuels receive the financial and regulatory benefits currently afforded to other advanced biofuel feedstocks and promote the development and commercialization of algae-based fuels. The adoption of this amendment will be a significant step in creating new jobs, increasing energy security and reducing greenhouse gas emissions.

“This amendment would address one of biggest barriers to the further commercialization of algae-based biofuels – financial parity with other feedstocks,” said Mary Rosenthal, Executive Director of the ABO. “Today, producers are handicapped by a tax code that doesn’t give algae-based fuels the same tax incentives that other advanced biofuels receive, and thus handicaps the algae-based fuel industry as a whole. Providing the tax incentives currently accorded to other advanced biofuels will level the playing field for algae, and help ensure that federal policy supports the development of one of the most promising domestic, renewable, low-carbon, next-generation fuels.”
Current federal tax policy discourages the production of algae-based fuels by failing to provide the same incentives accorded to other advanced biofuels feedstocks, which has made it more difficult for algae producers to attract the capital that is required to construct commercial-scale production facilities. Specifically, algae producers’ inability to access the $1.01 per gallon production tax credit currently afforded to other advanced biofuels has slowed the algae industry’s development.

“The recent ruling by the Environmental Protection Agency that algae-based fuels provide at least 50% emissions reductions compared to petroleum based fuels supports what we’ve been saying all along: algae-based fuels are one of the most environmentally sustainable biofuels in the United States,” said Rosenthal. “Algae’s environmental benefits, coupled with its enormous potential to stimulate our green economy, are just a few of the many reasons Congress should ensure that the tax code provide incentives to advance the development of an entire industry focused on creating renewable, sustainable and domestically-produced fuels that reduce emissions, enhance American energy security and, when fully commercialized, would create tens of thousands of American jobs.”

Along with recognizing the leadership of Senators Nelson, Crapo and Bingaman, ABO praised Senators Tom Udall (D-CO) and Sam Brownback (R-KS) for their support of the amendment and the burgeoning algae industry.

About the ABO
The Algae Biomass Organization (ABO) is a non-profit organization whose mission is to promote and advocate for the development of commercially-viable transportation and power generation fuels as well as other non-energy applications for algae biomass. Its membership is comprised of people, companies and organizations across the value chain. More information about ABO, including its leadership, membership, costs, benefits and members and their affiliations, is available at the website.

Contact:
John Williams, Scoville PR for ABO
206-625-0075,  jwilliams@scovillepr.com

EPA ruling confirms algae-based fuels reduce lifecycle CO2 emissions by at least 50 percent compared to petroleum-based diesel

WASHINGTON, D.C. – February 4, 2010 – The Algae Biomass Organization (ABO), the leading trade association for the industry, today praised President Obama for his strong support of the U.S. biofuels industry as outlined in his biofuels strategy released on February 3. Of most significance to the algae industry was the Environmental Protection Agency’s (EPA) finding that algae-based biodiesel and algae-based renewable diesel reduce emissions by more than 50 percent compared to petroleum-based diesel. The EPA made this determination based on a methodology that includes an analysis of the full lifecycle of algae-based fuels.

“Today’s ruling is a strong and welcome show of support by the Obama administration for the biofuels industry as a whole,” said Mary Rosenthal, Executive Director of the ABO. “But most important to our industry is the recognition by EPA that algae-based fuels reduce overall CO2 emissions on a lifecycle basis. This supports what we’ve been saying all along.”

With the issuance of the RFS-2, entrepreneurs, investors, researchers and the industry itself can be more confident that algae-based fuels will be an important component of a national renewable fuels portfolio, which will help reduce our nation’s dependency on imported oil, decrease harmful CO2 emissions and increase economic opportunity for thousands of people across the country.

Released as part of the Final Rule on EPA’s Renewable Fuels Standard (RFS-2), the EPA has made a determination through a full lifecycle analysis that algae-based biodiesel and renewable diesel meet or exceed the emissions threshold requiring a 50 percent reduction in greenhouse gas-forming emissions compared to petroleum diesel. This reduction in greenhouse gas emissions classifies algae-based biodiesel and renewable diesel as an advanced biofuel under the guidelines established by the Energy Independence and Security Act of 2007. The EPA’s overview of its lifecycle analysis of greenhouse gas emissions from algae-based biodiesel and other renewable fuels is available via the EPA’s website at http://www.epa.gov/otaq/renewablefuels/420f10006.htm.

The revised RFS program will increase the required volumes of renewable fuel to 36 billion gallons by 2022 and is expected to displace approximately 13.6 billion gallons of petroleum-based gasoline and diesel fuel, decrease oil imports by $41.4 billion and take the equivalent of 27 million vehicles off the road.

About the ABO
The Algae Biomass Organization (ABO) is a non-profit organization whose mission is to promote and advocate for the development of commercially-viable transportation and power generation fuels as well as other non-energy applications for algae biomass. Its membership is comprised of people, companies and organizations across the value chain. More information about ABO, including its leadership, membership, costs, benefits and members and their affiliations, is available at the website.

Contact:
John Williams, Scoville PR for ABO
206-625-0075,  jwilliams@scovillepr.com

Call for presentations and abstracts now open

PHOENIX – February 3, 2010 – The HYPERLINK “https://algaebiomass.org/” Algae Biomass Organization (ABO) today announced that the 4th Annual Algae Biomass Summit will take place September 28-30 at the JW Marriott Desert Ridge in Phoenix, Arizona. ABO chose the location given the burgeoning algae industry and leading algae-focused programs at leading academic and research institutions in Arizona and the greater Southwest. More information on presentations and areas of interest, including the full Call for Abstracts, is available at https://algaebiomass.org/events/2010CallforAbstracts.html. ABO is currently seeking proposals for keynote speakers, panels and poster presentations.

“2009 was a banner year for the algae industry, with hundreds of millions of dollars in funding from both the private sector and the federal government,” said Mary Rosenthal, executive director of ABO. “In addition numerous end user industries have joined the effort. Our summit will showcase the latest in technology breakthroughs, commercialization developments and policy and regulatory issues, as well as provide a forum for networking and knowledge sharing.”

Speakers and attendees at the Algae Biomass Summit will include national and international technologists, producers, scientists, investors, and policymakers. During the course of the event, leaders and attendees will discuss issues of critical importance to the emerging algae industry, including the commercial viability of algal production, current government and private initiatives, evolving technologies, processing concepts, life cycle analysis and venture/project finance. Last year’s Algae Biomass Summit, held in San Diego, California, was attended by more than 700 stakeholders across the algae industry.

About the ABO
The Algae Biomass Organization (ABO) is a non-profit organization whose mission is to promote and advocate for the development of commercially-viable transportation and power generation fuels as well as other non-energy applications for algae biomass. Its membership is comprised of people, companies and organizations across the value chain. More information about ABO, including its leadership, membership, costs, benefits and members and their affiliations, is available at the website.

Contact:
John Williams, Scoville PR for ABO
206-625-0075,  jwilliams@scovillepr.com

ABO believes that reliance on obsolete data and faulty assumptions undermines all conclusions

WASHINGTON, D.C. – January 25, 2010 – The Algae Biomass Organization (ABO), the trade association for the algae industry, today challenged the conclusions of a published report in Environmental Science and Technology claiming that “conventional crops have lower environmental impacts than algae in energy use, greenhouse gas emissions and water.” The report was based upon obsolete data and grossly outdated business models, and overlooked tremendous improvements in technology and processes across the production cycle. ABO strongly believes that these obsolete data and faulty assumptions seriously undermine the credibility of the study’s conclusions.

“We appreciate and support the interest in algae among the scientific community, and agree that examination of the life cycle impacts of algae for fuel processes is important,” said Mary Rosenthal, executive director of ABO. “However, we expect such research to be based on current information, valid assumptions and proven facts. Unfortunately, this report falls short of those standards with its use of decades old data and errant assumptions of current production and refining technologies.”

Among the many concerns of ABO about the report are:

• Assumptions about algae growth systems. The report uses a first generation, raceway-style pond system as its benchmark. Many leading algae companies abandoned that approach years ago and have a variety of more advanced cultivation systems, some of which are unrelated to the methods the authors sought to assess.
• Assumptions about co-location. By assuming the production facility is not co-located with a large CO2 emitter, calculations for sourcing CO2 are flawed, resulting in a higher attribution of CO2 for algae plants. Most commercial-scale algae projects are being developed alongside major emitters in order to beneficially reuse CO2 that will take the place of equivalent carbon emissions from petroleum fuels.
• Assumptions about water use. The study assumes fresh water and non-potable salt water are equal. A sustainable industrial algae production model uses non-potable, non-agricultural water in the process of making liquid fuels.
• Assumptions about nutrient use. Because the report does not look at the full algae fuel cycle, ignored is the opportunity to consider the ability of algae producers to recycle nutrients and avoid such a substantial burden.
• Assumptions about energy use. Because the authors admittedly did not consider the full algae fuel cycle, which allows energy reuse through biodigester biogas combustion coupled with the carbon recycling from all of the aspects of biodigestion, the report errantly gives a higher emissions burden.
• Assumptions about purchase of CO2 and fertilizer. The base case assumes algae farmers will purchase CO2 and fertilizer, yet such an approach is so prohibitively expensive it would never happen in reality. Yet those inputs are the major drivers of the negative impacts in the study.

Lastly, the authors make it very clear that their approach is “stochastic.” ABO believes the results of any stochastic study, defined as “of or pertaining to a process involving a randomly determined sequence of observations each of which is considered as a sample of one element from a probability distribution,” should not be given the same weight as studies and analyses based on facts and other measurable data.

“Even with the scientific shortcomings of the survey, it shows that with a few improvements, algae is much better than terrestrial plants as a fuel source,” said Dr. Stephen Mayfield, director of the San Diego Center for Algae Biotechnology. “The truth is that the algae industry is already well beyond the obvious improvements these authors suggest, and as we add these new efficiencies algae will become much more environmentally beneficial.”

In general, the Algae Biomass Organization firmly believes life cycle assessments are critical to the development of the industry, given the need to accurately assess and quantify the environmental impact of algae-derived energy. Its membership supports the development of robust LCAs, but believes that the process should include input from a multitude of stakeholders, including algae technology companies, NGO’s and other scientists. ABO has published a set of guidelines for LCA on itswebsite and is working with a cross section of industry leaders to develop a definitive LCA framework for algal biomass systems.

About the ABO
The Algae Biomass Organization (ABO) is a non-profit organization whose mission is to promote and advocate for the development of commercially-viable transportation and power generation fuels as well as other non-energy applications for algae biomass. Its membership is comprised of people, companies and organizations across the value chain. More information about ABO, including its leadership, membership, costs, benefits and members and their affiliations, is available at the website.

Contact:
John Williams, Scoville PR for ABO
206-625-0075,  jwilliams@scovillepr.com

Industry group identifies three priorities for legislators, throws support behind four bills

WASHINGTON, D.C. (November 19, 2009) – The Algae Biomass Organization (ABO) conducted a policy briefing to make the case for legislation to help accelerate the commercialization of algal biomass-based energy solutions. In open forums and individual briefings with legislators, ABO and its members delivered key insights gleaned from surveys of more than 400 algae industry leaders, scientists, entrepreneurs and end users. They also identified and voiced support for several pieces of legislation currently being considered by Congress.

On behalf of its more than 170 members, ABO focused on three key messages for policymakers.
First, the majority of respondents believe that the most compelling attributes of algae are its ability to serve as a replacement for fossil-based fuels while also beneficially re-using carbon dioxide. While algae have tremendous potential for many other uses in the long term, the industry believes that the most pressing needs are in the areas of energy independence and carbon dioxide reduction.

Second, when it comes to the development of standards and other regulations, the industry survey identified the U.S. Department of Energy, U.S. Department of Agriculture and the Environmental Protection Agency as the three most appropriate Federal entities with whom to interface today. Nonetheless, ABO recognizes the important role the Department of Defense has played in fostering acceptance and use of algae-based fuels.
Third, within the industry there is broad support for the development of lifecycle assessments and technical standards that benchmark the environmental impacts and benefits of algae-based technologies. Such data are imperative to illustrating the long term sustainability of algae biomass and quantifying its environmental impact. These must be developed in concert with algae developers as well as other stakeholders, including key environmental NGOs.

These messages are particularly relevant as Congress and the Obama administration continue to support the development of sustainable and renewable energy technologies. No fewer than half a dozen bills, amendments and regulations concerning algae’s treatment as a biofuel feedstock are currently being considered in Congress. Legislative support for feedstock parity that puts algae on a level playing field with other biofuel feedstocks is absolutely essential to algae’s potential for radically changing the domestic energy industry. Such legislation would also complement tremendous advances that have been made over the past two years in the algae industry’s technological development, commercialization efforts and investment from the financial community and oil industry.

“The legislative decisions being made today will impact our industry now and far into the future,” said Mary Rosenthal, executive director of the Algae Biomass Organization. “It’s important that policymakers fully understand the potential for algae to help resolve critical issues facing our world – GHG emissions reduction, energy security and job creation – all of which a strong algae industry will help address.”

In addition to the key themes and messages, ABO and its member companies identified several key pieces of legislation for support, including:

Renewable Fuels Promotion Act of 2009 (S. 1250). Sponsored by Senator Bill Nelson (D-FL), this bill would give algae-based fuels tax parity with cellulosic biofuels.

Algae Fuel Parity Act (HR 3460). Sponsored by Representative Brian Bilbray (R-CA), this bill would amend the Clean Air Act to include algae-based biofuels in the Renewable Fuel Standard and in the cellulosic biofuel producer tax credit.

American Clean Energy and Security Act of 2009 (HR 2454). Sponsored by Henry Waxman (D-CA) and supported by Edward Markey (D-MA), this legislation recognizes algae’s ability to beneficially reuse CO2 and ensures algae’s place in a cap-and-trade regime.

Clean Energy Jobs and American Power Act of 2009 (S. 1733). The Kerry-Boxer bill sponsored by Senator Barbara Boxer (D-CA) and Senator John Kerry (D-MA) recently was amended in the chairman’s mark to level the playing field for advanced green biofuels and recognize the potential of algae to beneficially reuse CO2, create jobs and increase the nation’s energy independence. The bill also includes the House provision that makes room for algae-based fuels in a cap-and-trade regime. The RFS amendment was offered by Senator Jeff Bingaman (D-NM) and Senator Tom Carper (D-DE). This bill also has seen key support from Senator Tom Udall (D-NM) and Senator Ben Cardin (D-MD) who supported algae-based fuels during the process.

These bills collectively reflect the initiatives undertaken by ABO and its member companies during the past year, during which they stressed two key needs. First, algae must receive the same tax incentives, subsidies and other financial benefits currently accorded other feed stocks. In addition, the industry believes that algae must be recognized as an effective carbon reduction strategy and safe for commercial production under the same regulations governing other traditional renewable fuel feedstocks.

“With many thanks to the hard work and advocacy of our member companies and several elected officials, we are close to achieving the goals we set earlier this year,” said Rosenthal. “The industry, and as a result our environment, national security and economy will benefit.”

About the ABO
The Algae Biomass Organization (ABO) is a non-profit organization whose mission is to promote and advocate for the development of commercially-viable transportation and power generation fuels as well as other non-energy applications for algae biomass. Its membership is comprised of people, companies and organizations across the value chain. More information about ABO, including its leadership, membership, costs, benefits and members and their affiliations, is available at the website.

Contact:
John Williams, Scoville PR for ABO
206-625-0075,  jwilliams@scovillepr.com