TransAlgae's Technology

The global market for algal bio-fuels is poised for rapid growth and expansion over the next decade. Algae are attracting increased investment and interest from bio-fuels, aviation and petroleum companies. Various studies found that the US and Europe can not grow enough corn, soy, or rapeseed to meet their bio-fuels targets. Fast growth in US and European biodiesel markets from 2007-2009 has lead to increased bio-refining capacity but a shortage of feed-stocks.

Around the world, an urgent demand for alternative, sustainable fuels and feed-stocks is growing to replace food-based feed-stocks. Compared to other feed-stocks, algae can provide a high-yield source of biodiesel, ethanol and aviation fuels without compromising food supplies, rainforests or arable land. Constantly rising demand for bio-fuels in the US, EU and Asia in 2009 will create new opportunities for algae to meet ambitious targets for biodiesel, ethanol, and next generation renewable fuels.

In reaction to concerns over high fuel prices, the costly dependence on imported oil, and rising GHG emissions, the U.S. Congress passed the Renewable Fuel Standard (RFS) program in the Energy Policy Act of 2005 and strengthened it under the Energy Independence and Security Act of 2007. The RFS program requires the U.S. to increase the volume of renewable fuel required to be blended into gasoline from 9 billion gallons in 2008 to 36 billion gallons in 2022. Of the 36 billion gallons, no more than 15 billion gallons can be corn-based ethanol. The law requires the remainder to be advanced bio-fuels that meet at least a 50 percent GHG reduction requirement, such as algae based bio-fuel.

An increasing number of global ventures are receiving investments to create algae based bio-crude as a feedstock for petroleum, and drop-in fuels for aviation, renewable diesel and renewable gasoline markets. Year 2008 witnessed more than $300 million dollars in combined investments and commitments to algae fuels-based public private partnerships, private companies, and first-stage commercial projects. Year 2009 is expected to see increased investment towards the acceleration and commercialization of algal bio-fuels technologies.