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GREATWATERS · #**521** (**permalink**) 03-05-2008, 02:35 PM

" algae feedstocks gain attention"

see march biodiesel magazine on line. Biodiesel Magazine

Oil Can · #**522** (**permalink**) 03-05-2008, 02:45 PM

Quote:

Originally Posted by GREATWATERS

" algae feedstocks gain attention"

see march biodiesel magazine on line. Biodiesel Magazine

Greatwaters,

Could you provide the link? I just couldn't find it.

Thanks,

GREATWATERS · #**523** (**permalink**) 03-05-2008, 02:51 PM

click on the words biodiesel it will take you there

curret issue march near bottom of list

#**524** (**permalink**) 03-05-2008, 03:38 PM

Gentlemen,

I have been very busy getting my company ready for the spring, but I see things are moving just fine without me.

In regards to business in Central America, the numbers floating around are much larger than Asia, there is multiple countries involved and possible contracts worth billions. Yes billions, and the numbers that were posted weeks ago on what is available to the Parcelian President were way off, he has billions available to spend on multiple countries!

Don't get me wrong our new Partners in Asia are an excellent addition, but contracts in Central America are as large or larger!

GREATWATERS · #**525** (**permalink**) 03-05-2008, 03:50 PM

its exciting to see crude oil made from things formaly reguarded as waste
spoiled soybeans, soy hulls, ...ect . in the pictures on the biocrude us website. ( click on recator pictures 2)

Mazie · #**526** (**permalink**) 03-05-2008, 05:51 PM

Widescale Biodiesel Production from Algae
By Michael Briggs, University of New Hampshire, Physics Department

Consider if you will, a treaty between the United States and Mexico, where Mexico grants the U.S. a permanent right-of-way to the Gulf of California for the purpose of building a seawater canal that will transport a large and continuous flow of seawater from the Gulf of California into the USA. For the sake of discussion, let us assume that a canal has already been built between the Gulf of California and the Salton Sea; and that the Salton Sea will serve as a transfer reservoir. Visualize a large aqueduct between the Salton Sea and Death Valley where a second inland sea has formed, approximately the size of the Salton Sea. From these two inland seas, several aqueducts extend out into the deserts of the Southwestern United States; Reaching into Arizona, Nevada and New Mexico.

Of the many and various farms, ranches and communities served by the aqueducts, there are forty-thousand algae farms, having a total water surface area of 250 acres each. Two-hundred and fifty acres multiplied by forty-thousand farms equals a total of ten million acres of shallow water algae ponds, dedicated for the purpose of producing biodiesel.

Each farm would have many ponds. Here is a picture of what a single pond might look like:

The pond would be shallow and the water would flow around the circle, making it easy to harvest the algae.

These are salt water algae ponds. Increasing levels of salinity caused by evaporation will be a problem. However, the problem can be solved by diluting the ponds with fresh water produced from desalinated seawater. Whenever new seawater, taken from the aqueduct, is added to the pond, desalinated seawater can be added too. Solar energy can power the desalination equipment. A new industry would develop to capitalize on the salt and minerals extracted from the process of desalination.

The readily available seawater solves the problem of evaporation, allowing full exploitation of the abundant sunlight. And desalination provides a source of local fresh water to dilute the salty pond water, keeping the salinity levels constant. Solar ponds can be built adjacent to the algae ponds to provide heat during cold desert nights.

1 hectare = 2.47 acres. Michael Briggs gave an estimate of $80,000 per hectare for the construction costs to build the algae ponds.

$80,000 divided by 2.47 = 32,390 rounded. We will say $32,500 per acre.

$32,500 times 250 acres = $8,125,000 construction costs for a 250 acre algae farm.

$8,125,000 times 40,000 farms = $325,000,000,000 to construct ten million acres of algae ponds.

That is Three Hundred and Twenty-Five BILLION dollars to construct the algae ponds. This does not include the cost of constructing the many distributed biorefineries that will be needed to process the algae and make the biodiesel (and to make the 10% methanol ingredient, etc.) Several adjacent algae farms could co-op a biorefinery, and/or the biorefinery could be the industrial center that defines an algae farming community.

Michael Briggs also provided an estimate of $12,000 per hectare for operating costs (including power consumption, labor, chemicals, and fixed capital costs).

$12,000 divided by 2.47 = 4,860 rounded. We will say $5,000 per acre for operating costs.

$5,000 times 250 acres = $1,250,000 annual operating costs for a 250 acre algae farm.

The University of New Hampshire Biodiesel Group web site provided the following information on their Algae ponds at wastewater treatment plants web page:

Micro algaes present the best option for producing biodiesel in quantities sufficient to completely replace petroleum. While traditional crops have yields of around 50-150 gallons of biodiesel per acre per year, algaes can yield 5,000-20,000 gallons per acre per year. Algaes grow best off of waste streams. Agricultural, animal, or human. Some other studies have looked into designing raceway algae ponds to be fed by agricultural or animal waste. We are now pursuing funding to investigate redesigning wastewater treatment plants to use raceway algae ponds as the primary treatment phase. With the dual goal of treating the waste and growing algae for biodiesel extraction. We also plan to investigate the possibility of using the algae mush (what is left after extracting the oil) as a fertilizer.

5,000 to 20,000 gallons per acre per year. That is a wide range. Will seawater provide enough nutrients? Would micro algaes grown in waste streams be more productive than algaes grown in seawater?

In his paper, under the section titled: How much biodiesel, Michael Briggs concluded that 140,800,000,000 (140.8 billion) gallons of biodiesel could replace 100% of the petroleum transportation fuels consumed in the United States annually, without requiring a big change in driving behavior or automotive technology. Although he did assume everyone would switch to diesel engines because of the superior efficiency of diesel compared to gasoline engines, and he did point to the new diesel-hybrid cars and trucks that are now becoming available, and the promise of new diesel engine technology on the horizon. (And, of course Michael Briggs was not implying that existing gasoline engines would run on biodiesel. The purpose of the paper is to answer the question HOW MUCH BIODIESEL is needed to free the USA from oil dependence. Some people at Exxon Mobil believe that no amount will ever be enough to replace oil.)

140.8 billion gallons divided by ten million acres = 14,080 gallons per acre.

If the algae ponds fail to yield enough micro algae oil to produce 14,080 gallons of biodiesel per acre per year, then ten million acres will not be enough to yield the target goal of 140.8 billion gallons per year.

Hey, we have plenty of fresh seawater, lots of sunshine and unlimited enthusiasm, so we will assume the algae ponds average 15,000 gallons per (pond surface area) acre, per year - if not, we will hire the best plant geneticists money can buy, and breed those little algae until they reach super algae status!

Based on Michael Briggs’ estimates, we were able to show that an algae farm with 250 acres of pond surface area would have $1,250,000 annual operating expenses.

15,000 gallons per acre times 250 acres = 3,750,000 gallons per algae farm per year.
$1,250,000 divided by 3,750,000 gallons = 33.3333 cents per gallon operating costs.

10,000 gallons per acre times 250 acres = 2,500,000 gallons per algae farm per year.
$1,250,000 divided by 2,500,000 gallons = 50 cents per gallon operating costs.

5,000 gallons per acre times 250 acres = 1,250,000 gallons per algae farm per year.
$1,250,000 divided by 1,250,000 gallons = 100 cents ($1) per gallon operating costs.

Did Michael Briggs’ estimates of operating costs include the cost of the initial capital investment? How much will it cost to pay off the $32,500 per acre loan for the initial construction costs (the $80,000 per hectare)?

That is: $32,500 times 250 acres = $8,125,000 construction costs for a 250 acre algae farm.

Let us assume a Zero Interest Loan over 20 years with a single payment of 1/20th of the principle due each year.

$8,125,000 divided by 20 years = $406,250 cost of debt per year per 250 acre algae farm.

$406,250 divided by 3,750,000 gallons = 10.8333 cents per gallon cost of debt (at 15,000 gallons per acre).

$406,250 divided by 2,500,000 gallons = 16.25 cents per gallon cost of debt (at 10,000 gallons per acre).

$406,250 divided by 1,250,000 gallons = 32.5 cents per gallon cost of debt (at 5,000 gallons per acre).

Worst case scenario at 5,000 gallons per acre = $1.33 per gallon total expense (operation costs + debt payments)

The worst case scenario total expense of $1.33 is for FEEDSTOCK only, and does not pay for the processing at the biorefinery to produce the final consumable gallon of biodiesel.

If the annual yield is only 5,000 gallons per acre, then the worse case scenario for feedstock is $1.325 times 42 = $55.65 per barrel of oil equivalent.

If the annual yield is 10,000 gallons per acre, then we would see a more rosy scenario for feedstock at .6625 cents times 42 = $27.83 per barrel of oil equivalent.

If the annual yield is 15,000 gallons per acre, then the cost of producing algae biodiesel feedstock would be .442 cents times 42 = $18.56 per barrel of oil equivalent. Very competitive with petroleum at low prices.

Don’t’ forget we have not added a profit yet.

If the farm earned 10 cents per gallon profit, then:

15,000 gallons times 250 acres times 10 cents = $375,000 per year net earnings.

10,000 gallons times 250 acres times 10 cents = $250,000 per year net earnings.

5,000 gallons times 250 acres times 10 cents = $125,000 per year net earnings.

The idea of a 250 acre farm has a very important purpose, indicated by the potential net earnings:

The U.S. congress can pass legislation to make this happen, with the condition that each of the 40,000 farms be given to qualified farmers. The qualifications would be pre-defined in the legislation. Corporations and foreign entities would not qualify. Only United States farmers could qualify—Willie Nelson farmers.

You can’t get any more American than that. And, it would not be socialism. It would be 21st century compassionate Americanism, while allowing our nation to pursue its own selfish interest—Achievement of Energy Independence. Adam Smith would be proud.