A Mini-Cluster of Algae-to-Biofuels Technology Blooms in San Diego

When I sat down recently with Mario Larach, he was still excited about a U.S. Department of Energy workshop he had attended on algae biofuels earlier this month at the University of Maryland. As the co-founder of a local biofuel startup called Kai BioEnergy, Larach has been tracking a nationwide surge of interest in algae-to-biofuel technology as he seeks venture funding for his company.

It’s an exciting idea—producing fuel from pond scum—but it has some practical problems that Larach and others are still trying to solve. A key issue, underscored in this DOE fact sheet, is that algal biofuels produced in large volumes with today’s technology would cost more than $8 a gallon at the gas pump, based on conservative estimates. Larach told me a lot of people in the field have been using “photobioreactors” and transparent piping systems to grow algae, which are both costly to set up and to operate. “The gurus in the space say the only way to do this economically is to grow algae in open space,” in shallow ponds, Larach says.

The DOE has identified a variety of areas where advances are needed, including algal-biofuels process research, production, and integration, not to mention scaling up pilot plants and demonstration projects to industrial operations. Larach says growing a particular species of algae in open ponds poses other problems. One is the challenge of eliminating “weed algae” that seems to infiltrate ponds. Another stems from often-strident ecological and political opposition to projects that call for cultivating a genetically modified algae in open ponds.

For the record, Larach says Kai BioEnergy has been using only native strains of algae in developing its biofuel technology. Still, he says, “Right now, GMOs (genetically modified organisms) have a lot of issues, including EPA issues,” referring to the Environmental Protection Agency.

Solving such issues won’t be simple, but Larach says San Diego is emerging as a capital for algae-to-biofuels technology. “If you did a map of the world in terms of where all the activity and the microalgae breakthroughs are, it’s right here,” Larach says. His list of San Diego’s expertise includes:

—Stephen Mayfield, a cell biologist at The Scripps Research Institute in La Jolla who also is a co-founder of Sapphire Energy, which established its corporate headquarters in San Diego (read on for more on Sapphire).

—B. Gregory Mitchell, another scientist who is regarded as a leader in

Author: Bruce V. Bigelow

In Memoriam: Our dear friend Bruce V. Bigelow passed away on June 29, 2018. He was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Bruce Bigelow joined Xconomy from the business desk of the San Diego Union-Tribune. He was a member of the team of reporters who were awarded the 2006 Pulitzer Prize in National Reporting for uncovering bribes paid to San Diego Republican Rep. Randy “Duke” Cunningham in exchange for special legislation earmarks. He also shared a 2006 award for enterprise reporting from the Society of Business Editors and Writers for “In Harm’s Way,” an article about the extraordinary casualty rate among employees working in Iraq for San Diego’s Titan Corp. He has written extensively about the 2002 corporate accounting scandal at software goliath Peregrine Systems. He also was a Gerald Loeb Award finalist and National Headline Award winner for “The Toymaker,” a 14-part chronicle of a San Diego start-up company. He takes special satisfaction, though, that the series was included in the library for nonfiction narrative journalism at the Nieman Foundation for Journalism at Harvard University. Bigelow graduated from U.C. Berkeley in 1977 with a degree in English Literature and from the Columbia University Graduate School of Journalism in 1979. Before joining the Union-Tribune in 1990, he worked for the Associated Press in Los Angeles and The Kansas City Times.