Algenol and Valero to develop algae biofuel

Fri May 7 2010, 10:56 AM

Florida-based Algenol Biofuels is partnering with a Valero Services, a subsidiary of Texan oil and gas firm Valero Energy. The pair will explore the potential for combining Algenol’s direct-to-ethanol technology with Valero’s expertise in the production and distribution of transportation fuels and chemicals. If successful, the pair could form a joint venture to commercially produce algae-based biofuel.

Algenol is developing a direct-to-ethanol process, which involves growing carbon dioxide-saturated, blue-green algae in bioreactors with saltwater. In the presence of sunlight, the algae is claimed to convert carbon dioxide and seawater into ethanol, fresh water and oxygen.

In June, the firm teamed up with Dow Chemical to build a demonstration plant at Dow’s site in Freeport, Texas. The facility will comprise 3,100 algae cultivating bioreactors, which are expected to produce 100,000 gallons per year of ethanol. Algenol and Dow were awarded a USD25m grant from the US Department of Energy for the project.