Solix out to prove algae-biofuels work

Biocrude the new oil?

Solix Biofuels has raised $15.5 billion according to the New York Times to prove that a 5 acre algae farm can produce biocrude that can be refined into gasoline at a far cheaper rate than any other biofuel.

Fast regeneration and CO2 consuming qualities make a algae a very compelling prospect for biofuel production, however, "creating the right conditions for algae to serve as a biofuel feed stock at commercial scale remains an expensive proposition".

Solix hopes that its photo-bioreactor can change these cost dynamics, and prove that algae is the next big thing in green investing.

Algae: Great potential as a biofuel, but not yet ready

Still a little too green

The 2008 Algae Biomass Summit demonstrated, according to GCC, that algae-based biofuels show tremendous potential, but "face difficult technical and economic challenges if it is to scale to be a significant component of a global energy solution."

In terms of a fuel, it simply costs too much to produce algae-based biofuels, and there hasn't yet been a scalable process for such production.

Most, especially investors, believe algae is still at least one big breakthrough away from challenging traditional fuel sources, as well as alternative sources. Fortunately, most of those investors believe that breakthrough will occur.

Can algae save the airline industry?

Can algae-based biofuels become cost-effective?

Last year one of the more interesting displays at Wired's NextFest was algae biofuel. While algae is believed to be one of the best feedstocks for biofuels because it produces far more energy per acre than crops like soybeans or corn, it has also proven to be quite expensive thus far. Nonetheless, supporters keep trudging along and, recently, the US airline industry has expressed a strong interest in supporting the development of the algae fuel.

Can the weight of the US airline industry make algae the fuel of the future?